![Is Entrepreneurial Spirit Inherited or Learned? az3bd9hy](/images/2024/633x356/az3bd9hy.jpg)
The concept of cultural entrepreneurship has many facets. It encompasses both the cultural and social impact of entrepreneurial training, and the environmental factors that influence its development.
Some societies, such as the USA, have a strong entrepreneurial culture. This means that certain characteristics are celebrated and encouraged, such as the ability of individuals to assume risks, patience when confronting challenges, and innovative problem solving, especially in uncertain situations. However, not all countries have such an entrepreneurial culture.
Entrepreneurship struggles to take off in Europe
In general, entrepreneurship can drive economic growth within countries, especially in high-income nations.
The Total Early-Stage Entrepreneurial Activity (TEA) is an index that measures entrepreneurial activity. It does this by recording all new businesses established within the last three years in a given country. Countries with an entrepreneurial tradition such as the USA or Canada, for example, have TEAs of 14.7% and 19.76%, respectively. The figures are similar for other emerging powers such as Brazil (18.6%), Mexico (16.8%) or Saudi Arabia (25.34%).
In Europe, entrepreneurship is a key factor in stimulating economic growth, but no country in the continent reaches the figures of other more entrepreneurial markets. According to Global Entrepreneurship Monitor, only Latvia comes close with 14.34%, followed by the Netherlands with 13.69%, Croatia with 13.15% and Estonia with 13.09%.
Many countries sit well below 13%, including the United Kingdom (11.76%), Cyprus (11.04%), and France and Slovakia (both with 10.75%). Meanwhile, at the tail end of European entrepreneurship are Poland, Romania, Lithuania, Greece and Spain, with 2.59%, 5.85%, 6.68%, 6,74% and 6.79%, respectively.
Cultural entrepreneurship
Over the years, various studies have developed models to improve understanding of the cultural dimensions of entrepreneurship, with the aim of analysing why some cultures or countries produce more entrepreneurs than others. They have found, for example, that a society whose population is less risk averse should, in theory, have stronger entrepreneurial values.
However, cultural differences cannot be considered in isolation. We also have to look at a society’s economic situation, bearing in mind several key points:
-
According to traditional economic thought, fear impacts entrepreneurship more when an economy is in recession. This is natural, given that an economic downturn reduces the overall number of business opportunities.
-
The Global Entrepreneurship Index has shown how countries with more favourable economic climates tend to perform better in terms of entrepreneurship.
-
Some studies have shown that a person is much more likely to become an entrepreneur if their parents, friends or neighbours are also entrepreneurs, or encourage them to become one. This is due, in part, to the fact that 80% of the times someone is encouraged to become an entrepreneur, friends, family or acquaintances provide a source of finance.
What do you need to become an entrepreneur?
The characteristics and attributes that are shared among business-minded people make up what some researchers call “entrepreneurial spirit”, with certain traits and motivations playing a very important role.
Personality-wise, natural entrepreneurs are more likely to accept challenges and achieve results. They are curious, self-motivated people who are more interested in working for their own benefit than in external recognition. They also have a greater need for autonomy, and a desire to find better ways of doing things.
Motivation can be broken down into two especially important areas:
-
Reward: making a difference to the world, making a living in difficult circumstances, and the possibility of greater economic incentive.
-
Professional objectives or past experience: continuing a family business, the desire to “be your own boss”.
Entrepreneurship: nature or nurture?
Many people do an excellent job as employees, but would feel overwhelmed at the thought of starting their own business.
Entrepreneurial spirit mitigates or bypasses this fear of failure – a perfectly natural reaction to the uncertainty and risk involved in making decisions and pursuing goals.
Some authors argue that “nurture” – meaning circumstances, experiences and learning – plays an important role in shaping entrepreneurs. Others, however, emphasise the influence of personality traits, suggesting a greater inclination towards a “nature” perspective.
Enterprising talent
While opinions vary, it is clear that successful entrepreneurs are the result of a combination of innate characteristics and environmental factors. Nevertheless, starting and running a business will come more naturally to those who have a clear, innate vocation towards entrepreneurship.
Just as no one can become an Olympic athlete without the necessary talent, entrepreneurship requires a unique combination of skills and dispositions that not everyone naturally shares. However, this does not mean that effort and sacrifice are not also fundamental to entrepreneurial success.
Javier Bouzas Arufe, Profesor, Emprendedor e Investigador en economía y empresa, Universidade de Santiago de Compostela
This article is republished from The Conversation under a Creative Commons license. Read the original article.
Recommended books:
Capital in the Twenty-First Century
by Thomas Piketty. (Translated by Arthur Goldhammer)
In Capital in the Twenty-First Century, Thomas Piketty analyzes a unique collection of data from twenty countries, ranging as far back as the eighteenth century, to uncover key economic and social patterns. But economic trends are not acts of God. Political action has curbed dangerous inequalities in the past, says Thomas Piketty, and may do so again. A work of extraordinary ambition, originality, and rigor, Capital in the Twenty-First Century reorients our understanding of economic history and confronts us with sobering lessons for today. His findings will transform debate and set the agenda for the next generation of thought about wealth and inequality.
Click here for more info and/or to order this book on Amazon.
Nature's Fortune: How Business and Society Thrive by Investing in Nature
by Mark R. Tercek and Jonathan S. Adams.
What is nature worth? The answer to this question—which traditionally has been framed in environmental terms—is revolutionizing the way we do business. In Nature’s Fortune, Mark Tercek, CEO of The Nature Conservancy and former investment banker, and science writer Jonathan Adams argue that nature is not only the foundation of human well-being, but also the smartest commercial investment any business or government can make. The forests, floodplains, and oyster reefs often seen simply as raw materials or as obstacles to be cleared in the name of progress are, in fact as important to our future prosperity as technology or law or business innovation. Nature’s Fortune offers an essential guide to the world’s economic—and environmental—well-being.
Click here for more info and/or to order this book on Amazon.
Beyond Outrage: What has gone wrong with our economy and our democracy, and how to fix it -- by Robert B. Reich
In this timely book, Robert B. Reich argues that nothing good happens in Washington unless citizens are energized and organized to make sure Washington acts in the public good. The first step is to see the big picture. Beyond Outrage connects the dots, showing why the increasing share of income and wealth going to the top has hobbled jobs and growth for everyone else, undermining our democracy; caused Americans to become increasingly cynical about public life; and turned many Americans against one another. He also explains why the proposals of the “regressive right” are dead wrong and provides a clear roadmap of what must be done instead. Here’s a plan for action for everyone who cares about the future of America.
Click here for more info or to order this book on Amazon.
This Changes Everything: Occupy Wall Street and the 99% Movement
by Sarah van Gelder and staff of YES! Magazine.
This Changes Everything shows how the Occupy movement is shifting the way people view themselves and the world, the kind of society they believe is possible, and their own involvement in creating a society that works for the 99% rather than just the 1%. Attempts to pigeonhole this decentralized, fast-evolving movement have led to confusion and misperception. In this volume, the editors of YES! Magazine bring together voices from inside and outside the protests to convey the issues, possibilities, and personalities associated with the Occupy Wall Street movement. This book features contributions from Naomi Klein, David Korten, Rebecca Solnit, Ralph Nader, and others, as well as Occupy activists who were there from the beginning.
Click here for more info and/or to order this book on Amazon.