Entrepreneurship Model Comparison Of East and West

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Considering recent success of entrepreneurial ventures in China and other eastern countries we ascertain that culture plays a vital role in entrepreneurship Hofstead (2001) uses culture as the factor differentiating one society from another or one person from another while Muller & Thomas (2001) entails culture effects the will of people including willingness to work for someone or indulging in business Van Stel (2005) entrepreneurship varies from country to country Blanchflower (2000) Weneckers (2006) this depends upon demographics and culture.

S.M. Lee & S.J. Peterson (2000) narrate culture shows the amount of uncertainity avoidance, individualism, achievement and many more which ultimately engrosses an impact on entrepreneurship we ascertain that west can incorporate traits from east S.M. Lee & S.J. Peterson (2000) eg. Japanese culture shows harmony difficulty to raise capital for entrepreneurs entailing less business falls in Japan than west while Gunderson (1989) American culture provides steady supply of capital S.M. Lee & S.J. Peterson (2000) American firms fall more than Japan. Tsang (1996) states Chinese values are in harmony following personal relationships, obligation to clusters Kwong (1996) entrepreneurship is a part of china's culture historically also an important trait of their culture is working family groups and hardworking which are reasons of their success in family businesses.

Knowledge

G. Dushnitsky & T. Klueter(2009) describe knowledge as business idea, its use and patent D.B. Audretsch, W. Bonte & M. Keilbach (2008)assert developing new products and processes is based on knowledge and ability and willingness of entrepreneurs Arundel & Guena (2004) induction of knowledge to industry is a strong part Audretsch and Thurik (2000,2001)entrepreneurship is based on wealth creating activities based on knowledge D.B. Audretsch (2007) puts knowledge spillover a factor of entrepreneurship while knowledge converts to economic growth through entrepreneurship D.B. Audretsch, W. Bonte & M. Keilbach (2008) states new knowledge comes from research and development in private and public sectors while Audretsch & Feldman (1996)assert knowledge is local and varies geographically that is regions with more knowledge show more entrepreneurial activity.

Opportunity

Lebeinstein (1966, 1979) refers the gap of total expected consumption and production of existing firms as opportunity while Amabile (1988) explain opportunities depends on ability to imagine and create leading to development in existing ideas or goods or discovery or formation of new J.C. Short, T.W. Moss & G.T. Lumpkin (2009) disagree to the theory opportunity depends on entrepreneurs ability to search for it and assert the existence of opportunity and entrepreneurs ability to recognize and pursue it Shane & Venkatraman (2000) describe entrepreneurship in terms of opportunity and opportunity exploitation moreover Stevensons & Jarillo (1990) explain entrepreneurship in words of opportunity thus, opportunity and its exploitation are major dependents for entrepreneurship while at end 1990 only 22% of people starting new firms were found starting it because of having no other option but the rest were created because of market opportunity (Small Business Service, 2001, pg.6)

Investment

N. Bosma, M.V. Paraag, R Thurik & G. Witt (2002) divide investment into human and social investment which means inflow of human skills societal values or culture moreover we induct capital to investment moreover it is narrated that investment provides inputs to the performance of entrepreneur that is entrepreneurship G. Dushnitsky & T. Klueter(2009) culture affects investment and opportunity as it impacts the frequency of meetings on investor and entrepreneur D.B. Audretsch, W. Bonte & M. Keilbach (2008)assert conversion of knowledge to new products and goods or conversion of ideas into tangible items needs risky investments if this happens it results in formation of entrepreneurial ventures moreover Arrow (1962) describes that technology needs investment while D.B. Audretsch, W. Bonte & M. Keilbach (2008) states investment is needed for knowledge induction too.

Culture

Trompenaars (1993) attributes culture is formed by its members and their environment and their interaction with each other Hofsteade (1994) clarifies culture as a creation of activities, interactions, beliefs, religion and relationships from the birth of a child through life

Hall (1959) explains culture with furthermore ease in the context of actions, thinking patterns and feelings of people as they deal with their daily routines M. Lounsbury & M.A. Glynn (2001) describe culture as a set of thoughts through which a person develops an insight of himself and his where about Moreover Hofstead (2001) uses culture as the factor differentiating one society from another or one person from another Muller & Thomas (2001) entails culture effects the will of people including willingness to work for someone or indulging in business while Berger (1991) entails it is culture that creates entrepreneurship

Entrepreneurship

W.B. Gartner (1988) defined entrepreneurship as formation of corporate entities

J.A.C Carland,J.W. Carland, Frank Hoy& W.R. Boulton (1984) separated entrepreneurship from small businesses in the context of realization of a new idea Kao,Raymond (1993) put it as creation of something unique to build on wealth and for society welfare D.B. Audretsch, W. Bonte & M. Keilbach (2008) puts forth entrepreneurs make new and unique ideas into the eyes of public Ronstadt, Schoolhammer, Shills (1982) further support this differentiation as some large firms are also found engaged in entrepreneurship

Mill (1848) believed risk is the factor which separates simple business from entrepreneurship

However, Shumpter (1934) cleared risk as the basic difference between entrepreneurship and simple business in the context, risk being a part of every business ownership not necessarily entrepreneurship Martin (1982) declares risk a part of investment Brockhaus (1982) sums entrepreneurship as presence of innovation and some other traits while Vought & Hoy (1981) eliminated demographics from these traits

Conclusion

Culture plays a vital role in the development and success of entrepreneurship as well as entrepreneurial business this is because culture is the basic factor of demand creation and the factor on which markets move but it is also dominant that culture itself produces demand and opportunities thus with the recent eastern success of entrepreneurial businesses we focus on the eastern culture of countries like china where individualism is not as much as united states and family owned businesses are more than the segregated ownership based businesses and they are successful because it is culture of china that embeds trust and faith in relationships and these traits make a business work and decisions go well another trait of Chinese is that they are hardworking while a trait which is almost common in the whole eastern countries is family owned businesses in India examples of family owned business include TaTa, reliance and many more and their success lies in their ties, relationships and culture. Entrepreneurship depends on the factors like investment, opportunity and knowledge and these variables vary in east and vest lower investments are available in east and they rely more on foreign direct investment so is the case in knowledge but opportunity is something which is their own their culture shows low labor costs and that is their opportunity for competing with west.

Theoretical Framework

ENTREPRENURSHIP

CULTURE

KNOWLEDGE

OPPORTUNITY

INVESTMENT

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