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This paper analyses the relationship between entrepreneurial dynamics and the level of competitiveness in Latin American countries. Based on a stage of economic development model the authors demonstrate that Latin American countries under the model followed different paths related to competitiveness. These different paths can explain the effect of specific competitiveness conditions on entrepreneurial dynamics in Latin America. Recent studies confirm that during the last two decades, the development of new technologies and emergence of new business models has enabled the shift from large corporations to small and new ventures (Acs and Audretsch, 1988; Jorgenson, 2001; Audretsch and Thurik, 2001; Thurow, 2003).
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