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National Culture, Societal Values, and Type of Economy: Are They Relevant to Explain Entrepreneurial Activity?
Abstract
We analyze the relationship between cultural values, societal values and the type of the economy with necessity-driven, opportunity-driven and improvement-driven entrepreneurship. We take into account GEM's data from 56 countries. These reports are also used to characterize the three types of entrepreneurship, the societal values and the type of economy. We approach national culture through the five dimensions of Hofstede's work on cultural values using the Values Survey Module 2013 (based on Hofstede's work). Cultural values marginally explain necessity-driven and opportunity-driven entrepreneurship. In turn, societal values only explain improvement-driven entrepreneurship. Finally, the type of economy is important in explaining necessity-driven and opportunity-driven entrepreneurship, however it is of no added value in explaining improvement-driven opportunity. One needs to be cautious when drawing general conclusions as we believe that societal values are failing to capture differences among the types of entrepreneurship analyzed.
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