Culture's Role in Entrepreneurship: Self-Employment Out of Dissatisfaction

Posted: 4 Nov 2009  

Geert Hofstede

Independent

N. Noorderhaven

Tilburg University and Institute for Research on Intercultural Cooperation

Roy Thurik

Erasmus University Rotterdam (EUR) - Centre for Advanced Small Business Economics (CASBEC); Erasmus Research Institute of Management (ERIM); EIM Netherlands - Business and Policy Research; Tinbergen Institute

Lorraine M. Uhlaner

EDHEC Business School

Alexander R.M Wennekers

affiliation not provided to SSRN

Date Written: 2004

Abstract

This research investigation addresses why somecountries have more entrepreneurs than others. To investigate determinants ofentrepreneurship, data points are included from several countries and differentperiods of time between 1974 and 1994. The bivariate relationship between levelof entrepreneurship and a number of economic factors, cultural traits, anddissatisfaction variables are examined. Regressions are conducted on time-series data using various economic anddissatisfaction variables as independent variables to predict level ofentrepreneurship in several country clusters. Past research is reviewed on thelevel of entrepreneurship at the aggregated societal level. Findings indicate that the factors determining level of entrepreneurship arecomplex, but the basic finding is that dissatisfaction with society and life ingeneral determines level of entrepreneurship in a country. Further, thecultures of relatively poor countries can be characterized by large powerdistance and low individualism and often by strong uncertainty avoidance, atleast in Western countries. This in conjunction with relatively highdissatisfaction with society and life give rise to a high incidence ofsmall-scale self-employment. When countries develop, dissatisfaction declinesand so do levels of entrepreneurship. In industrialized countries, informationtechnology and differentiation of markets create diseconomies of scale andinvite new, innovative entrepreneurship. At the same time, a high level ofsatisfaction with life in these societies may slow down the drive towardentrepreneurship. (JSD)

Keywords: Individualism, Business conditions, Cultures, Earnings trends, Employment, Job satisfaction, Populations, Self-employment, Social conditions & trends

Suggested Citation

Hofstede, Geert and Noorderhaven, N. and Thurik, Roy and Uhlaner, Lorraine M. and Wennekers, Alexander R.M, Culture's Role in Entrepreneurship: Self-Employment Out of Dissatisfaction (2004). Innovation, Entrepreneurship and Culture: The Interaction between Technology, Progress and Economic , Vol. , p. 162-203 2004. Available at SSRN: https://ssrn.com/abstract=1496783

Geert Hofstede (Contact Author)

Independent

No Address Available

Niels Noorderhaven

Tilburg University and Institute for Research on Intercultural Cooperation ( email )

Postbus 90153
Tilburg, DC 5000 LE
Netherlands
+31-13-4662420 (Phone)

Roy Thurik

Erasmus University Rotterdam (EUR) - Centre for Advanced Small Business Economics (CASBEC) ( email )

3000 DR Rotterdam
Netherlands
+31 10 408 2232 (Phone)
+31 10 408 9146 (Fax)

HOME PAGE: http://www.thurik.com

Erasmus Research Institute of Management (ERIM) ( email )

P.O. Box 1738
3000 DR Rotterdam
Netherlands

EIM Netherlands - Business and Policy Research

Postbus 7001
2701 AA Zoetermeer
Netherlands
+31 79 341 3634 (Phone)
+31 79 331 3742 (Fax)

Tinbergen Institute ( email )

Burg. Oudlaan 50
Rotterdam, 3062 PA
Netherlands

Lorraine M. Uhlaner

EDHEC Business School ( email )

24 avenue Gustave Delory
Roubaix, 59057
France

Alexander R.M Wennekers

affiliation not provided to SSRN

No Address Available

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