role of culture in development of entrepreneur and business

1. THE ROLE OF CULTURE ON
ENTREPRENEURSHIP
DEVELOPMENT
By
D.Srinivas reddy

2. In recent years a growing awareness of the importance of
entrepreneurial activity
for economic development has triggered research on the
fundamentals of
entrepreneurship. Cross-national differences in levels of
entrepreneurial activity
may be explained by a wide range of economic, technological,
cultural and
institutional factors.
Introduction

3. Why are some people more entrepreneurial than others? What
motivates people
towards business entry and self-employment?
Profit may be one motive, as emphasized by several economists.

4. Culture is may affect
entrepreneurship through individual orientations and higher-level
institutions
However, positive reasons alone may not motivate entrepreneurship.
Some
individuals may have no other option but to choose self-employment
INFLUENCE OF CULTURE

5. Max Weber first emphasized the influence of culture on
entrepreneurship at the beginning of the twentieth century.
As Weber famously argued, Protestantism encouraged
a culture that emphasized individualism, achievement
motivation, legitimating of entrepreneurial vocations,
rationality, asceticism, and self-reliance.
Culture is greatly influenced by religion since religion determines
a person’s basic values and beliefs.
CULTURE AS A FACTOR IN
ENTREPRENEURSHIP
DEVELOPMENT:

6. According to Tjaart Minnaar, MD of OIM International, a leading
business consultancy firm, an organization's culture is now more
relevant than ever to ensure sound risk and performance
management. This is in light of the scale of global woes experienced
against the backdrop of the financial crisis.
THE ROLE OF CULTURE IN
BUSINESS

7. Entrepreneurial culture can be made to enable democratization of
the capacity to create and manage (business) towards wealth creation,
thereby eradicating poverty.
Culture refers to attitudes and values which in the case of
entrepreneurship may be linked with autonomy, creativity and sense
of responsibility (soft skills) and so on. It also refers to
entrepreneurial knowledge and skills and management competencies
which have to be acquired (hard skills).
Culture can be defined as the mix of norms, values and beliefs that
are shared by a particular community
ENTREPRENEURSHIP AND
ENTREPRENEURIAL CULTURE

8. CULTURAL VALUES
Linton (1975) describes values as a predisposition to act in a certain
way.
Values of entrepreneurs:
According to Sexton & Bowman (1986), entrepreneurship is a value in
itself for Americans. Different authors suggest different values for
entrepreneurs:
Kets de Vries (1984): reputation, power, status and recognition
Gordon Survey of values (1976): independence, efficacy and a
negative reaction to affiliation.

9. According to J. M. Toulouse (1990), entrepreneurial culture is favored
by the following set of attitudes:
1. Business activities are valued.
2. Individual and collective initiatives are highly rated.
3. Determination and perseverance are desirable qualities.
4. An equilibrium between security and risk is accepted.
5. The tension between stability and change is resolved.
Therefore, in a society favoring entrepreneurship, entrepreneurs are
role models who are not only acceptable, but desirable
CULTURAL ATTITUDES

10. THANK
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