Impact of Culture on Entrepreneurship

Topics: Entrepreneurship, Culture, Entrepreneur Pages: 8 (2503 words) Published: November 25, 2012
Information Management and Business Review Vol. 4, No. 1, pp. 30-34, Jan 2012 (ISSN 2220-3796)

Impact of Culture on Entrepreneur Intention
Syed Imran Sajjad1, *Haroon Shafi1, Aasim Munir Dad2 1Iqra university Islamabad campus 2University of Science and Technology (MUST) Mirpur Azad Kashmir, Pakistan * Abstract: The main purpose of this study is to identify the role of entrepreneurship in Pakistan. After reviewing the literature, researchers identify those predictors who influence the entrepreneur’s intention with the help of socio cognitive model. National culture of a country influences the entrepreneur’s intention to start new business. Perceived feasibility, perceived desirability and entrepreneurs experience has a direct impact on entrepreneur’s intention. The study finds out the impact of culture on entrepreneur intention, different cultures have different ways to influence the entrepreneur intention and different ways to impact on intentions towards perceived feasibility and perceived desirability .The study helps entrepreneur’s decision making process and also helps out the development of further new business in Pakistan, motivates students to become entrepreneurs and analyzes their feasibility and desirability. Culture varies from country to country, within country different provinces, how different cultures, different traditions, norms and values. So in future, it helps to analyze entrepreneur’s intention in different cultures. Key words: Pakistan’s society, Entrepreneurship, entrepreneur’s experience, culture 1. Introduction Entrepreneur is an individual who runs a business with new idea or adding value in existing idea entrepreneur is a creator, risk taker who brings change in environment, with the help of technology, effective organization trained employees, and gets maximum benefit. A good leader is that, who manage all these activities on continuous bases. This is the study of an individual who starts new business. In this paper researchers analyze the entrepreneurial intention how entrepreneur is being motivate to starts new business, the relationship between entrepreneur intention with their experienced and relationship between desirability that influences the entrepreneur intention, study also analyze the affect of national culture on entrepreneur intention as well as entrepreneurial activity for development and underdevelopment countries. Different aspects of human behavior but the one predictor intention plays an important role (Ajzen, 1991) when individual starts new business than an economic activity starts than circulation of money starts ultimately growth of country starts according to Romer(1994) due to entrepreneur investment in new venture long term growth of country starts. According to Mitchell et al (2002) for starting a new business many factors influence entrepreneur intention like desirability, feasibility, and entrepreneurial experience, but it varies culture to culture and nation to nation, within country culture varies, researchers are still unclear, the over all impacts of culture in entrepreneur intention, Every country has its own culture, its values, norms and beliefs that affects the entrepreneurial intention, at some stages the culture plays an important role in decision making. Now a day’s private sector plays a vital role in economic development, in private sector small business owners have various opportunities to start new venture. The policies of government are important for entrepreneurs, but only development of policies is not sufficient, their implementation is also mandatory to attract investor to invest in business, small and medium enterprises some time not going well due to lack of knowledge and infrastructure. This paper is conceptual in nature and focuses that how entrepreneurs motivate to start a new venture especially in the context of culture. 2. Literature Review


Entrepreneurial intention: Entrepreneurial intent to begin an...

References: Ajzen, I. (1991). Theory of planned behavior. Organizational Behavior and Human Decision Processes, 50(1), 179-211. Bandura, A. (1994). Self-efficacy, in Ramachaudran, V.S. (Ed.). Encyclopedia of Human Behavior Academic Press, 4, 71-81. Bird, B. (1988). Implementing entrepreneurial ideas: the case for intentions. Academy of Management Review, 13, 442-449. Cristina, J. & Dwayne, D. (2009). An exploratory study of competitive strategies among hotels in a small developing Caribbean state. International Journal of Contemporary Hospitality Management, 21(4), 491 – 500. Danns, G. K. & Mentore, M. M. (1995). Race and economic power in Guyana: a study of the East Indians, in Ryan, S. and Stewart, T. (Eds), Entrepreneurship in the Caribbean: Culture, Structure, Conjuncture, University of the West Indies, Institute of Social and Economic Research, Trinidad and Tobago.
Fernandez, D. R., Carlson, D. S., Stepina, L. P. & Nicholson, J. D. (1997). Hofstede’s country classification 25 years later. Journal of Social Psychology, 137(1), 43-54. Frese, M. & Zapf, D. (1994). Action as the core of work psychology, in Trandis, H. C., Dunnette, M. D. and Hough, L. (Eds), Handbook of Industrial and Organ. George, G. & Prabhu, G. (2000). Developmental financial institutions as catalysts of Entrepreneurship in emerging economies. Academy of Management Review, 25, 620-30. Hayton, J. C., George, G. & Zahara, S. A. (2002). National culture and entrepreneurship: a review of behavioral research. Entrepreneurship Theory and Practice, 26(4), 33-53. Hofstede, G. (1980). Culture’s Consequences: International Differences in Work Related Values, Sage, Beverly Hills, CA. Krueger, N. & Dickson, P. R. (1994). How believing in ourselves increases risk taking: perceived self-efficacy and opportunity recognition. Decision Sciences, 25(3), 385-400. Krueger, N. (1993). The impact of prior entrepreneurial exposure on perceptions of new venture feasibility and desirability. Entrepreneurship Theory and Practice, 3, 5-21. Krueger, N., Reilly, M. & Carsrud, A. (2000). Competing models of entrepreneurial intentions. Journal of Business Venturing, 15(2), 411-32. Mark-Pruett, R., Bryan, T., Francisco, L. & Jerry, F. (2008). International Journal of Entrepreneurial Behaviour & Research, 15(6), 571-594. Mitchell, R., Smith, J. B., Morsem, E. A., Seawright, K., Peredo, A. M. & McKenzie, B. (2002). Are entrepreneurial cognitions universal? Assessing entrepreneurial cognitions across cultures. Entrepreneurship Theory and Practice, 26(4), 9-32. Reardon, T., Crawford, E. & Kelly, V. (1989). Link between nonfarm income and farm investment in Africa households: Adding the capital marketing perspective. American journal of Agriculture Economics, 76 (5), 172-179. Romer, P. (1994). The origins of endogenous growth. Journal of Economic Perspectives, 8(1), 3-22. Shane, S. (2003). A General Theory of Entrepreneurship, Edward Elgar, Cheltenham. Shapero, A. (1975). The displaced, uncomfortable entrepreneur, Psychology Today, 9(11), 83-8. Shapero, A. & Sokol, L. (1982). Some social dimensions of entrepreneurship in Kent, C. (Ed.), Encyclopedia of Entrepreneurship, Prentice-Hall, Englewood Cliffs, NJ, 72-90. Zhao, H., Hills, G. E. & Siebert, S. E. (2005). The mediating role of self-efficacy in the development of entrepreneurial intentions. Journal of Applied Psychology, 90(6), 1265-1272.
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Essay about culture
  • Entrepreneurship Essay
  • a perspective on entrepreneurship Essay
  • Essay about Entrepreneurship
  • The impact of e-culture on business Essay
  • The Revolutionary Impact of Entrepreneurship Essay
  • Essay about Entrepreneurship
  • Entrepreneurship Essay

Become a StudyMode Member

Sign Up - It's Free