DOES CULTURE IMPACT ON ENTREPRENEURIAL ACTTIVITY Essay

DOES CULTURE IMPACT ON ENTREPRENEURIAL ACTTIVITY - Essay Example Independence was found out to be a vital in entrepreneurial activity. (Hofstede, 2001 p. 225). Hofstede believed that degree of autonomy differed from society to society held that in low poor distance societies. (Wu et al) The second dimension of national culture is uncertainty. Uncertainty avoidance refers to the way people cope with uncertainty. People of high uncertainty avoidance and people with low uncertainty. Entrepreneurial activities are full of uncertainty challenges and risks. (Wu et al) Entrepreneurship has been defined as new venture creation that is growth oriented and generates employment as well as small businesses and micro enterprises that may provide self employment .In this definition among many others' entrepreneurship encompasses small profit oriented economic activities. The scholastic view last centuries on entrepreneurship was not on economic efficiency but rather on social-political terms since small business were the main suppliers of employment. Many economists were convinced that the future of many economies prosperity will be determined by large corporations and that small business would eventually die away. Recently however, the notion among scholars has changed and entrepreneurship is regarded as one of the vehicles to economic prosperity. Entrepreneurial activity has contributed not only in creation of employment but also in terms of innovation and competitiveness (Lowe, 2000, p. 9). John major (then chief secretary to the UK treasury) in May 1 989 said "there is a great deal of evidence to show that the jobs and products of tomorrow are highly likely to come from activity of the small business sectorin my judgment the future belongs to them". The perpetual succession of entrepreneurship contrary to scholar's belief has led classical theorists to review their arguments on entrepreneurship. There is no clear and orchestrated works on entrepreneurship but economic, financial and administrative factors do not sufficiently explain the variations in entrepreneurial activities' these led scholars to consider culture as a determinant to entrepreneurial activities (Lowe 2000, p.16). Studies have been done to determine whether cultural differences impact on entrepreneurial activities Culture is defined a set off values, beliefs and expected behaviors (Hofstede, 1980 pg. 4). It has also been defined as the collective programming of mind which distinguishes the member of one group or category of people from those of another. In his later definition, Hofstede refers to culture referencing to a nation but acknowledges that this yardstick alone cannot be used, not only does culture differ across nation but also differs regionally, ethni cally and socially and from all these angles culture affects organizational behavior (Hofstede, 1980 pg. 25).Culture for the purpose of this study can be analyzed in different set of interdependent and interrelated categories namely personal traits, organizational culture, branch or industry culture and national culture. This paper will look at the look at personal traits