Preview

The Impact of Culture on Entrepreneural Activity

Good Essays
Open Document
Open Document
695 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
The Impact of Culture on Entrepreneural Activity
Does culture impact on entrepreneural activity?
The influence of national culture on entrepreneurship is of considerable theoretical and practical value
‘Culture is the collective programming of the mind which distinguishes one group of people from another’ Hofstede (1980) Culture is always a collective pheniomenion, becauce it is derived from one’s social environment and partly shared with people who live or lived within the same social environment, which is where it is learned.
Culture indeed does have an impact on entrepreneural activity and some cultures encourage entrepreneurship while some other cultures hinder entrepreneurship, though it is argued that there are other factors to be considered like a favourable environment which combines social , political and educational attributes which promote entrepreneural activity For example the culture of USA is considered to be the most entrepreneural in the world. Entrepreneurship is ingrained in the fabric of North American culture, it is taught in school from kindergarten and has been integrated into college and university curricula. It is promoted through personal success human interest stories in the media and through various outreach and training programmes and as a career, entrepreneurship is espouded early and reinforced regularly through out ones life. On the other hand the chineese…..
Hofstede undertook an extensive cross cultural study, using questionare data from eighty thousand IBM employers in sixtysix countries across seven occupations and established four dimensions of national cultures.
1. Individualism vs collectivism: This is the degree to which people prefer to act as individusals rather than groups. Individualistic societies are loosely knit social frameworks in which people primaily operate as individuals or in immediate families; here, the task prevails over relationships. Collectivist societies are composed of tight networks in which people operate as members of in-groups and outgroups,



Bibliography: Burns, P. (2001) Entrepreneurship and Small Business, Palgrave Macmillian.

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Culture is how a group of people share the same beliefs and values. Cultures pass on these values and beliefs from generation to generation. “Cultures grow and change very slowly, and have many means of protecting themselves” (Wrench, McCroskey, & Richmond, 2008).…

    • 228 Words
    • 1 Page
    Satisfactory Essays
  • Satisfactory Essays

    Individualism vs. collectivism is measuring the degree of integration of individuals in groups. In individualistic societies, the ties between individuals are loose. It is expected of everyone that he / she makes for himself / herself and his/ her immediate family. By contrast, the human being is integrated in collectivist societies from birth in strong, closed We-groups that protect him for a lifetime and demand for loyalty.…

    • 242 Words
    • 1 Page
    Satisfactory Essays
  • Good Essays

    It focuses on the degree the society reinforces individual or collective, achievement and interpersonal relationships. In the individualism society, the ties between individuals were loose and people 's achievement and freedom could be valued. Compared with that, in the collectivism society, the relationship between individuals was tight. All the collective types such as family were emphasized by the members.…

    • 453 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Dr. Geert Hofstede, a Dutch management researcher is known for his study on cultural dimensions. He conducted a comprehensive study of how culture influences values in the workplace (Satterlee, 2009). In 1980, the Dutch management researcher Geert Hofstede first published the results of his study of more than 100,000 employees of the multinational IBM in 40 countries (Jandt, 2009).…

    • 6620 Words
    • 27 Pages
    Powerful Essays
  • Better Essays

    Analysis of Japanese Business Culture Along with recent globalization, the business market is now diffused everywhere in the world. Consequently, mega-competition and international co-operation are promoted simultaneously in the field of business. Under this circumstance, learning and understanding the business culture each country has is important to succeed in global business. As business culture is indivisible from a country’s cultural uniqueness, American-style business is formed in the United States, and British-style business is adopted in England.…

    • 1106 Words
    • 5 Pages
    Better Essays
  • Good Essays

    Culture Competence

    • 1254 Words
    • 6 Pages

    People in individualistic cultures emphasize their success/achievements in job or private wealth and aiming up to reach more and/or a better job position. Especially in the USA the fight about jobs and trying to climb up in the hierarchy ladder is something very common. Whereas Collectivists are less competitive, but are more cooperative in the education and work environment. These traits are important if the primary aim is to prevent any tensions among other people, which is of primary importance to collectivist cultures. Although individualist and collectivist cultures are different from each other, performance and achievement between these two cultures tend to balance out because being a high achiever (an individualist trait) or a cooperative (a collectivist trait) individual helps in the positive achievement of an activity and goal. I would consider myself a more individualist because that is the foundation to which I was raised, to go out and earn things on my own as oppose to others doing it for me.…

    • 1254 Words
    • 6 Pages
    Good Essays
  • Powerful Essays

    The role of entrepreneurialism and an entrepreneurial culture in economic and social development has often been under estimated. Over the years, however, it has become increasingly apparent that entrepreneurship does indeed contribute to economic development. Transforming ideas into economic opportunities is the crux of entrepreneurship. History shows that economic progress has been significantly advanced by pragmatic people who are entrepreneurial and innovative, able to exploit opportunities and willing to take risks.…

    • 2100 Words
    • 9 Pages
    Powerful Essays
  • Powerful Essays

    Culture is whereby a community, regardless of its size shares a way of life where they are associated together with common and distinctive characteristics, beliefs and activities (THE 101 PowerPoint Lecture 2 2011). On the other hand, Hofstede defined culture as the “collective mental programming of the human spirit that allows us to distinguish the members of one category in comparison with the members of another category” (Hofstede 2011). The basic element which makes up culture are such as history, religion, values, social organizations and language (Samovar, Porter & McDaniel 2008). The mentioned elements are portrayed by means of language, food, buildings,…

    • 3620 Words
    • 15 Pages
    Powerful Essays
  • Good Essays

    Sociological Concepts

    • 1501 Words
    • 7 Pages

    Culture: The symbolic and learned aspects of human society. Culture is not biological but, instead, is transmitted and shared via social interaction.…

    • 1501 Words
    • 7 Pages
    Good Essays
  • Good Essays

    Culture shapes exactly how people feel the world, yet it's not necessarily the easiest term to define. Culture is a set of values, social practices, and types of expression held in common by several grouped people. People in the group generally identify themselves and/or are also identified through outsiders in accordance with ancestry, language, and practices. Typically, culture is usually determined through ethnicity, although it may also be determined by criterion such as geography, religion, and socioeconomic standing. The truth is, some individuals identify themselves like a culture simply because have identical gender roles, sexual orientation, physical or mental capacity, and academic or professional expertise.…

    • 704 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Culture in the Work Place

    • 306 Words
    • 2 Pages

    Probably the most famous study of how culture relates to values in the workplace was undertaken by Hofstede. As part of his job as a psychologist working for IBM, Hofstede collected data on employee attitudes and values for over 100,000 individuals. This data enabled him to compare dimensions of culture across 40 countries. Hofstede isolated four dimensions that he claimed summarized different cultures--power distance, uncertainty avoidance, individualism versus collectivism, and masculinity versus femininity.…

    • 306 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    The most noted and useful way to understand how cultural values determine business practices and market conditions come from Geert Hofstede. He studied more than 90,000 people in 66 countries, and was able to to categorize differences into five primary dimensions: Individualism/Collective Index (IDV), Power Distance Index (PDI), Uncertainty Avoidance Index (UAI) Masculinity/Feminity Index and Long Term Orientation (LTO). I highly recommend studying these dimensions to see where your country and business fit in. Visit his website here to gain a better understanding.…

    • 292 Words
    • 2 Pages
    Good Essays
  • Good Essays

    The Eu

    • 472 Words
    • 2 Pages

    Cultural Differences : Individualism and Collectivism

The many cultures of the world differ in a great variety of ways. One of the most 
interesting ways in which cultures vary is in the extent to which they are "individualistic" 
or "collectivistic." An individualist society and a collectivist society are different in many 
ways. 
In an individualistic culture, each person tends to think of himself or herself in terms of 
his or her own characteristics and preferences-the things that make the person unique or 
different from others. In a collectivistic culture, each person tends to think of himself or 
herself in terms of his or her social relationships and roles-the things that make the 
person a part of a larger group, such as an extended family or an ethnic group. 
Another difference between individualist and collectivist cultures involves the tendency 
to help others. In an individualist society, people feel some obligation to help persons 
who share some group identity-such as their distant relatives, or persons from the same 
town-but this obligation is not nearly as strong as in collectivist cultures. On the other 
hand, people in collectivist cultures tend to feel very little inclination to help other people 
who do not belong to their groups, whereas people in individualist cultures are more 
often willing to help others even if they do not belong to the same group. 
Another difference between individualist and collectivist cultures involves the 
relationship between people and the groups to which they belong. In an individualist 
culture, people usually join or leave groups when it is in their personal interest to do so. 
In a collectivist culture, people usually stay with one group for a long time. For example, 
people in individualist societies are more willing to quit their job, and take a new job at 
another company. People in collectivist societies usually prefer to stay with one company 
throughout their career. Similarly, people in individualist…

    • 472 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    United Airlines

    • 23413 Words
    • 94 Pages

    Comprehensive Term Project United Airlines [pic] Prepared By: Presented to: Jeffrey R. Nystrom Management 4500 Business Policy and Strategic Management November 18, 2008 Table of Contents SECTION 1: CASE STUDY 1 1.1 Background / History 1 1.2 Organizational Mission 1 1.3 External Environment 2 1.4 Internal State of Affairs 4 1.5 Generic Strategy 5 1.6 Long-Term Objectives 5 1.7 Grand Strategies 5 1.8 Short-Term Objectives 6 1.9 Functional Tactics 7 1.10 Strategic Execution 8 1.11 Executive Bonus Compensation Plans 8 1.12 Current and Historical Culture and Structure 9 1.13 Strategic Controls 10 1.14 Innovation and Entrepreneurship 11 SECTION 2: IDENTIFICATION OF KEY STRATEGIC ISSUES 12 Culture: 12 Market share: 12 Economy: 12 SECTION 3: ANALYSIS AND EVALUATION 13 3.1 External Environment 13 3.2 Internal Analysis 16 3.3 SWOT Analysis 18 3.4 Organizational Mission 18 3.5 Generic Strategy 19 3.6 Long-Term Objectives 20 3.7 Grand Strategies 21 3.8 Short-Term Objectives 22 3.9 Functional Tactics 24 3.10 Strategic Execution 25 3.11 Executive Bonus Compensation Plans 25 3.12 Company Culture, Structure, and Leadership 26 3.13 Strategic Control 27 3.14 Innovation and Entrepreneurship 28 SECTION 4: RECOMMENDATIONS 29 4.1 External Environment – Opportunities and Threats 29 4.2 Internal Environment – Strengths and Weaknesses 30 4.3 Organizational Mission 30 4.4 Generic Strategy 31 4.5 Long-Term Objectives 33 4.6 Grand Strategies 33 4.7 Short-Term Objectives and Action Plans 35 4.8 Strategic Execution 35 4.9 Executive Bonus Compensation Plans 36 4.10 Strategy Implementation 37 4.11 Strategic and Operational Controls 40 4.12 Innovation and Entrepreneurship 42 Section 1 Appendices 43 Appendix 1A - United Airlines Timeline 43 Appendix 1B - Corporate Responsibility Statement 45…

    • 23413 Words
    • 94 Pages
    Powerful Essays
  • Good Essays

    Rape Culture

    • 914 Words
    • 3 Pages

    According to E.B. Taylor (1988) culture is «That complex whole which includes knowledge, beliefs, art, morals, law, customs, and any other capacities and habits acquired by man as a member of society» (p. 40). This sharing of common culture makes up a major part of being in a group; all this common aspects are what makes up a society.…

    • 914 Words
    • 3 Pages
    Good Essays

Related Topics