The concept of cultural entrepreneurship has many dimensions: it encompasses both the cultural and social influences on entrepreneurial development and the environmental factors that influence the development of entrepreneurial development.
Some societies, such as the United States, have a strong entrepreneurial culture, which means that certain traits are celebrated and encouraged, such as an individual’s ability to take risks, perseverance in the face of challenges, and innovative problem-solving, especially in uncertain situations. However, not all countries have such an entrepreneurial culture.
Entrepreneurship is slow in Europe
In general, entrepreneurship can boost national economic growth, especially in high-income countries.
Total early-stage entrepreneurial activity (TEA) is a measure of entrepreneurial activity. It tracks all new businesses founded in a particular country within the past three years. For example, countries with a tradition of entrepreneurship, such as the United States and Canada, have TEAs of 14.7% and 19.76%, respectively. Other emerging economies, such as Brazil (18.6%), Mexico (16.8%), and Saudi Arabia (25.34%) have similar figures.
In Europe, entrepreneurship is a key factor stimulating economic growth, but no country on the continent reaches the figures of other entrepreneurial markets. Only Latvia comes close at 14.34%, followed by the Netherlands at 13.69%, Croatia at 13.15% and Estonia at 13.09%, according to the Global Entrepreneurship Monitor.
Many countries are well below 13%, including the UK (11.76%), Cyprus (11.04%), France and Slovakia (both 10.75%), while Poland, Romania, Lithuania, Greece and Spain sit at the very bottom of European entrepreneurship with figures of 2.59%, 5.85%, 6.68%, 6.74% and 6.79% respectively.
Cultural Entrepreneurship
Over the years, various studies have developed models to improve our understanding of the cultural dimensions of entrepreneurship, aiming to analyze why some cultures or countries produce more entrepreneurs than others. For example, it has been found that societies with a population that is less risk averse should, in theory, have stronger entrepreneurial values.
However, cultural differences cannot be considered in isolation. Several important points must be kept in mind and the economic situation of the society must also be taken into account.
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Traditional economic thinking suggests that fear has an even greater impact on entrepreneurship when the economy is in a downturn. This makes sense, given that a recession reduces business opportunities across the board.
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The Global Entrepreneurship Index shows that countries with more favorable economic environments tend to perform better in terms of entrepreneurship.
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Research has shown that people are much more likely to become entrepreneurs if their parents, friends, or neighbors are entrepreneurs or encourage them to become entrepreneurs. This is due in part to the fact that in 80% of cases where people are encouraged to become entrepreneurs, friends, family, or acquaintances provide the funding.
What does it take to be an entrepreneur?
The common characteristics and attributes of business-minded people are what some researchers call “entrepreneurial mindset,” with certain traits and motivations playing a crucial role.
Personality-wise, natural entrepreneurs are more likely to embrace challenges and achieve results. They are curious, self-motivated people who are more interested in working for their own benefit than external validation. They also have a greater need for autonomy and a desire to find ways to do things better.
Motivation can be broken down into two areas of particular importance.
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Rewards: Contributing to the world, making a living in difficult conditions, and the possibility of greater financial incentives.
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Career goals or past experiences: Continuing in the family business, desire to “be my own boss.”
Entrepreneurship: Nature or nurture?
There are plenty of people out there who have great jobs as employees, but the thought of starting your own business can feel overwhelming.
Entrepreneurship alleviates or avoids the fear of failure, which is a completely natural response to the uncertainty and risk involved in making decisions and pursuing goals.
Some authors argue that “nurture” (environment, experience, learning) plays a key role in shaping entrepreneurs, while others tend to emphasize the influence of personality traits and lean towards a “nature” perspective.
Enterprising talent
Opinions vary, but it’s clear that successful entrepreneurs are the result of a combination of innate traits and environmental factors. But for those with a clear innate disposition toward entrepreneurship, starting and running a business may come more naturally.
Just as you can’t be an Olympic athlete without the necessary talent, entrepreneurship requires a unique combination of skills and qualities that not everyone possesses naturally, but this doesn’t mean that hard work and sacrifice aren’t essential to entrepreneurial success.
