TOPIC 2

THE ENTREPRENEURIAL CULTURE

Expected learning outcomes

By the end of this topic, you will be able to:

1. Define culture and entrepreneurial culture;

2. Explain the importance of entrepreneurial culture;
3. Discuss the cultural habits that promote entrepreneurial development; and
4. Discuss ways of managing factors which inhibits development of entrepreneurial culture.

Definition of culture

o Culture is defined as set of values, perceptions, wants and behavior learned by a member of a
society from family and other institutions.
o Hofstede defines culture as a collective programming of the mind which
distinguishes the member of one group or category of people from another.
o Culture is the set of shared attitudes, values, goals, and practices that characterizes an
institution or organization (Merriam-Webster dictionary).
o Schein (1990) defines culture as a widely held, shared set of values, beliefs and ideas.
o Culture refers to society and its way of life. It is defined as a set of values and beliefs, or a
cluster of learned behaviors that we share with others in a particular society, giving us a sense
of belongingness and identity (Lebrón, 2013).

Entrepreneurial culture

o Entrepreneurial culture refers to the way of embracing the concept of finding new
opportunities in business and gathering the necessary resources to fill the opportunities.
o In other words entrepreneurial culture is a way of people embracing life by
participating in activities that enable then create new business enterprises.

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o Entrepreneurial culture is defined as a set of commonly shared values and beliefs which
shape an ‘expected’ behaviour (Osowska, 2010). This expected behaviour is entrepreneurial
behaviour. A clearer definition of entrepreneurial culture by Osowska (2016) is that
entrepreneurial culture is a set of values and beliefs held by a social group that endorse and
are conducive to entrepreneurial behaviour.
o Many governments around the world want to promote entrepreneurial culture because they
have recognized the importance of entrepreneurship (i.e. identifying opportunities, exploiting
opportunities, creativity, innovation, free enterprise etc.).
o A country can develop the entrepreneurial culture by forming policies that constitute
the following:
a) Integration of entrepreneurship training in the overall education system to tap on
youths.
b) Exposure of entrepreneurship through the networks and business contacts of role
models.
c) Creation of a conducive and enabling environment that permits new business
to emerge and flourish.
d) The creation of entrepreneurial culture that has to come from deep social convictions
based on strong values and systems of the locals.

It should be created in a way that it welcomes entrepreneurship and respects the investor and
also reflecting the core values.

NB-Explain other ways that entrepreneurial culture can be inculcated into a particular
society/country.

Importance of entrepreneurship culture

o Enhances economic growth and building of social capital.

o Enhances job creation.
o Acts as a primary source of innovation.
o Helps in the devolution of government power for policy implementation etc.

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The cultural habits that promote entrepreneurial development

a) Money orientation

o Money oriented people know the value of money and has the intention of making it.
o The money oriented people use the need of money as a motivating factor pushing
them to be entrepreneurs.

b) Future orientation

o A society that has foresight to know about the future business environment is likely to have
more entrepreneurs.
o This is because they are likely to visualize key changes that are likely to create opportunity.

c) Time consciousness

o Knowledge that time exists and its importance.

o Knowing the right time to start an entrepreneurial activity.
o Utilization of time.
o The correct timing of the market conditions.

d) Trust and honesty

o Through trust, consumer demand is gained on the products and services available.
o Entrepreneurs should reciprocate this by providing the expected standards.

e) Hard work

Willingness to work hard distinguishes successful and unsuccessful persons.

The cultural factors inhibiting entrepreneurial development

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a) Religion- religious beliefs may deter entrepreneurial investments in items such as night clubs
and pubs.

b) Language-establishing businesses in areas where there is language barrier may lead to poor
communication or fear of innovation.

c) Personal relationship-Married people may avoid getting involved in business activities

since no time is spared for the family.

d) Attitude towards innovation

o This is especially in cultures which oppose innovation due to fear of change.

e) Networks-poor networking and ability to meet people limit new:

o Opportunities.
o New knowledge.
o New information.

f) Technology-lack of technical skills and knowledge may slow growth and development of
entrepreneurial activities. Lack of technical skills and knowledge may lock one out of being
competitive.

Ways of managing factors which inhibits development of entrepreneurial culture

i) Working in related business to gather the necessary skills required before one starts his own
business.
ii) Setting policies that ensure that entrepreneurship training is established in the school
syllabus.
iii) Young people to be encouraged to read articles from newspapers, watch television
and h a v e business contacts to enable them develop interest in business.
iv) Youths as well as aspiring adults entrepreneurs should be encouraged to get better and faster
access to:
 Knowledge.
 Information on business.

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  Internet etc.

5. Aspiring entrepreneurs should be encouraged to seek guidance in selection of machines and

other facilities.