An Eclectic Theory of Entrepreneurship: Policies, Institutions and Culture

Abstract

The resurgence of entrepreneurship in the Westernworld is a multi-faceted phenomenon that may be studied according to the level of analysis--i.e., while micro level studies focus on the individual's choice to become self-employed, the macro perspective focuses on various environmental factors, including cultural variables and government regulation. Taken together, micro level and macro level analyses reveal that the individual's occupational choice depends on his or her own risk-reward profile of entrepreneurship versus that of other types of employment, as well as on hisor her institutional and cultural environment. This environment is shaped by the evolution of the private and informalsector, the government's willingness to promote entrepreneurship, and the culture's general attitude toward entrepreneurship. (SAA)

Keywords: Career choices, Public policies, Regulations, Risk orientation, Organizational cultures, Cultural background, Attitudes