Entrepreneurial culture be explained by demographic variables


Entrepreneurship plays an important part in a society's advancement as well as prosperity. There are multiple factors contributing to how individuals have perceived the need of entrepreneurship according to many behavioral models, cultures and inheritance. Entrepreneurship plays a vital role in boosting up the economy as well as the social aspects of a country in a most positive manner. More recently, Companys and McMullen (2007) reviewed many of the main theories that incorporate both the demand and supply-side perspectives and argued that there are many distinctive and emerging schools of thought regarding the development of entrepreneurship. Many of the researches have shown different conclusions at different times; showing several thing correlating with entrepreneurship including demographics including gender, age or family background (Stephen 2009), entrepreneurial spirit boosting up the innovations and venture creation phenomenon so country's economy (Venkataraman, 1997), personal features have an incredible effect on entrepreneurial intention and venture creation phenomenon (Baum y Locke, 2004), cognitive variables are the fore-most factors explaining entrepreneurial behavior and its origin in an individual (Baron, 2004), entrepreneur as someone endowed with a force of "creative destruction" and as an innovation generator, through new combinations of materials, production means or markets [1] (Schumpeter, 1964), intentions of the entrepreneur act as the most important element in understanding the entrepreneurial process (Baron, 2004)

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Entrepreneurship brings revolution in every aspect of life. It plays a decisive role for a country in general and a community in particular producing new goods and services. Entrepreneurship is directly related bringing massive changes in productivity, technology and economy bringing international capability to compete. Furthermore, the need of entrepreneurship gets far more importance in the world like today which is carrying massive hefts of recession, unemployment and worst economical situations. The recent researches show drastic declining trend in European countries as far as entrepreneurship is concerned. European people especially graduating students are more interested in white-collar jobs in multi-national companies, large enterprises and public sectors. If Europe is compared with China, Russia, The United States of America, China etc, the researchers get to know that there is a great room present in Europe to re-inject the concept of entrepreneurship in youth on immediate basis. The concept of "Early Stage Entrepreneurial Activity Rates" (TAE) applies here and it is matched with the Gross Domestic Product (GDP) of different countries. The European studies reveal that Brazil (12.7%) has a much higher TEA level than Russia (2.7%) and France (3.2%). We do not have indications of TEA level for Germany, but based on similarities to its neighbors like, France (3.2%), Belgium (3.2%) and Austria (2.4%), we should not expect a much higher level of TEA. Whereas 8% of Americans say they are currently involved in starting a business, that's true of only 2% of Germans and 1% of the French. Another 28% of Americans are considering starting a business, compared to just 11% of the French and 18% of Germans [2] .

However some official figures and private reports also argue that recession and unemployment it self caused a driving force and increased the percentage of entrepreneurship in labor force. They also stress on the fact that more graduating students should be pulled using entrepreneurial skills so that more positivity could be achieved in terms of yield, efficiency and effectiveness. One of the most important piece of research correlating entrepreneurship and culture belongs to Stephan in which she conceptualized "Culture of entrepreneurship" (C-ENT). Culture is defined as mutual beliefs, norms, artistic beliefs etc by bunch of individuals living in an organized manner in a society. As a matter of fact, culture and entrepreneurship has a two way relation. Firstly a culture is needed to portray the dimensions of entrepreneurship and in the later stage, vice versa. Culture of entrepreneurship (C-ENT) consists of five dimensions as below:

Openness to opportunity and changes

Initiative an risk taking

Responsibility taking

Capability beliefs

Entrepreneurial beliefs

According to many researches, entrepreneurial capabilities are based on multi-factors and web of behavioral models. The problem arises here is the mutual exclusivity and the weights that should have been assigned to each dimension mentioned above contributing to successful entrepreneurial skills in an individual. On the other hand, it is clear that as far as demographical features are concerned and the extent to which Culture of entrepreneurship (C-ENT) is homogenously distributed within the demographics which makes it further difficult to come to pin-point results.

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3 Figures 1 In the 1975, Martin Fishbein and Icek Ajzen formulated the Theory of Reasoned Action. According to this theory, people's behavioral intentions are determined by two variables: their attitude toward behaviors and their subjective norms, which [3] refer to the perceived normative pressure to (or not to) perform specific behaviors. For example, people will quit smoking if they think that it is unhealthy, or if they believe that others who are important to them want them to quit, or both (LAM, 2006). However, it is not completely true that behavioral intention always leads to actual behavior because of circumstantial limitations. Having this problem in mind, ten years later, in 1985, Ajzen introduced a new variable in this theory - perceived behavioral control or personal effectiveness - that resulted on the theory of planned behavior (TPB). This theory has been applied to studies of the relations among beliefs, attitudes, behavioral intentions and behaviors (Figure 1). Ajzen in 1991 reviewed the theory of Reasoned Action later and included a new determining factor of intention which is called "perceived behavioral control", reflecting the individual's perception concerning his or her own capacity to achieve the specific result [4] . Relating this very intention factor to entrepreneurship, we get to know that the entrepreneur is the individual on the front-line and we see changing trends of having white-collar jobs rather than engaging our-selves in entrepreneurship.

Intention to bear the risk and loss and moving ahead as an entrepreneur is the need of time. Individual's perception regarding the local cultural elements which derives the "social behavior" also acts as a driving element to perform or reject certain behavior. Based on the fact, Krueger argued regarding the theory is valid to analyze the venture creature phenomenon [5] . Again, the main arena of problem erupts using the behavioral models is having no specific hypothesis to be concluded; given that the nature of research is exploratory. But, the bottom line is having a stronger C-ENT will automatically create a strengthened entrepreneurial behavior in terms of support, resources and collective effort as culture defines behaviors so applies for entrepreneurial behavior/ intention. On the other hand, more specifically, the researchers analyzed how perceptions of the culture and the social environment in a region/country influence entrepreneurial intentions and their antecedents (that means, attitudes towards entrepreneurship, social norms, and perceived behavioral control).  Researchers assessed perceptions of culture along six dimensions [6] :

Entrepreneurial traits: the extent to which people in the same region value entrepreneurial traits such as autonomy, risk taking, personal initiative;

Opportunity seeking: the extent to which people in the same region actively seek business opportunities;

Capability beliefs: the extent to which people in the same region are capable to solve complex problems and face difficulties and uncertainty;

Responsibility taking: the extent to which people in the same region take responsibility for the work they do;

Entrepreneurial fears: the extent to which people in the same region have fears and doubts concerning an entrepreneurial career.

Entrepreneurial motivation: the extent to which people in the same region are willing to start their own businesses;

As far as the demographical arena is concerned, the fore-most demographical variables include:

-age and life cycle


-place of birth

-studies level

-income level

-geographical locality etc.

From top till bottom, as far as applying social sciences on a concept like entrepreneurship, this could involve dozen of concepts and variables. Collins, Moore and Unwalla were the first authors to shows that certain family circumstances can have influence on entrepreneurial conduct. It was also argued by Ajzen that men presented a higher relation having entrepreneurial antecedents in the family than women. Other researchers provided a very contradictory approach as far as demographic variables is connected to entrepreneurship. Robinson et al (1991) states argued that there is no relation between gender and the creation of enterprises phenomenon. Also, some of the researchers opposed the concept of C-ENT as they argue that C-ENT is defined as societal practices as perceived by each individual, however, it may be the case that different groups of people perceive different aspect of Culture of Entrepreneurship. So there is no rule of thumb present to co-relate culture with Entrepreneurship.

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On the other hand, getting the primary data, it always showed demographic and background variables do play a very important role in the perception of culture. The primary research done my many of the researchers show that entrepreneurial element in a college graduate showed a much strong connection of those whose parents were having a strong occupational ststus and had rich background. Again, the deep analysis summarizes that demographical variables do not explain the large share of the variance in cultural perception but they exert some relevance influence. Thus this can lead to the presence of different sub-groups within varying cultural perception even in homogenous aspects.


The study focuses on the demographical variables bombarding the institution of entrepreneurship and distorting its actual status. The most weight-age given on such variables is of gender. It is common sense that women are soft and calm in nature and for entrepreneurship aggressive behavior is important. Men are more inclined towards exhibiting entrepreneurial skills and taking risk. Other important factor to consider on a lesser extent is the parent's occupation as entrepreneurs also affects the study. In this paper we intended to test the effects of national culture on entrepreneurial intention and its previous circumstances, as defined by the TPB model.  Doing that, we neglected many other aspects which could also influence and moderate this relationship, like: age, gender, type of entrepreneurial action, etc.  These are the most considering limitations present in the research. In addition, we have to believe that institutions of advanced education could present diverse levels of organizational culture, further or fewer inclined to value entrepreneurship in a general perspective. The sample size in the research is limited to college students being 403 in number. Again, appealing investigation potential linger unwrapped, for example trying to understand the role that universities could play in the diffusion of entrepreneurship values and beliefs.  

Another limit in our research is related to the fact that in the instrument used (C-ENT questionnaire); individuals conveyed their belief by putting themselves in other peoples' place in their state or country. This could lead to biases in the answers. This point should be deeply looked at and could be the entity of specific research to improve the evaluation and the usage of the questionnaire and its reliability. Future research may benefit from a closer examination of the context of the culture-entrepreneurship relationship. This relationship has an important temporal dimension and researchers would benefit from exploring the strength and direction of this relationship at different points in time.

The researchers believe that this unusual concern provides the thrust and drive for outlook research that will additionally closely deal with the connection and mutual association between demonstration, appearance and expression of culture at every level versus outline of entrepreneurship. Also, changes in the political, technological, and economic environments might co-influence this dynamic relationship. Therefore, researchers need to consider these variables in their analyses. In addition, significant and considerable breach in our knowledge of this bond is present and its loop-holes require to be concentrated on.