Culture and Entrepreneurship

Rahel Schomaker, Eithne Knappitsch and me published a working paper in the Working Papers in Industrial Engineering series on "Culture and Entrepreneurship":


The impact of culture on entrepreneurship is a widely accepted phenomenon. Cultural factors influence entrepreneurship via different mechanisms on the macro-, meso-, and micro-level of a country. Building on existing research, we draw a clear link between national cultural dimensions and entrepreneurship, using a new model that arranges different cultural dimensions in groups based on their particular function: political, social, or individual (PSI-model) and that distinguishes between values and practices where relevant. The PSI-model provides a coherent theoretical framework on which different cultural dimensions and their impact on entrepreneurship can be analysed, allowing for particular attention to be drawn to social practices and social values. This paper contributes to a better understanding of the relationship between culture and entrepreneurship, providing empirical evidence of how specific cultural dimensions influence entrepreneurship. The findings are of relevance from a policy perspective and can be used to generate practical recommendations for national institutions interested in promoting entrepreneurship and entrepreneurial activities. The findings are also transferable to other fields related to national cultural dimensions such as level of innovation, investment, budgeting etc.