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Entrepreneurial activity involves many risks and challenges along its life cycle, even more when it is in its very beginning phase. New organizations have a strong necessity to find strategic and valuable resources to achieve their growth and survival while they are taking their first steps in business. In addition to this, countries’ entrepreneurship represents different opportunities like technological development or renewable energy innovations, but for Latin America it means a powerful engine for the economy, thousands of jobs and a reliable way to get rid of poverty. This paper aims to discuss how social networks can be a useful mechanism for entrepreneurs in Latin America to obtain valuable resources from external sources. The method employs a descriptive and exploratory focus, as well as an inductive approach for its conclusions. Results of the paper present different programs carried out by Chilean and Peruvian governments that promote entrepreneurial networks, and how these can be useful to the entrepreneurs’ business activities. Even when these programs need to extend their initiatives, covering a larger scope of entrepreneurs, the study concludes by focusing on the importance of networks promoted by these local institutions as a part of entrepreneurial initial operational phase under turbulent conditions, where valuable resource are scarce and the surrounding institutional environment is weak.

Constraints and opportunities for entrepreneurship in Peru and Chile: A discussion about institutions and social networks in Latin America