The Social and Cultural Foundations of Entrepreneurship

Monday, March, 9, 2020

The Social and Cultural Foundations of Entrepreneurship

Monday, March, 9, 2020

What is the Foundation of Entrepreneurship Around the World?

The decision to start a new business is the product of an individual’s attitudes, perceptions and intentions, set within a social, cultural and political context that could support or constrain that decision. Some societies readily embrace enduring traditions of entrepreneurship and trade, yet others see enterprise as a relatively new characteristic of an economy in transition. Whatever the cultural context, to be successful the entrepreneur must rely on a wide range of stakeholders, including investors, employees, suppliers and customers, as well as the tacit support of family and friends.

Then entrepreneurship is a social and cultural phenomenon that is reflected in the GEM Adult Population Survey (APS) questionnaire by asking whether the individual knows someone who has recently started a new business, whether there are currently good opportunities to start a new business in the local area, and how easy it is to start a business in their country. Knowing someone else who has started their own business can increase awareness of entrepreneurship, as well as heighten appreciation of the associated costs and benefits, and can provide the potential entrepreneur with a benchmark. Knowing other entrepreneurs means exposure to role models and mentors, hardwires the motivating factors or drivers for being successful, and provides connections to relevant stakeholders and advice. Seeing good opportunities to start a business may indicate that innovation potential exists, and also points to an ability to recognize such opportunities. Finally, considering whether or not it is easy to start a business can reflect how people perceive the environment as enabling or constraining to entrepreneurial activity (Read more…).

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