Impact of National Culture on Entrepreneurism (Case Study Sample)

Impact of National Culture on Entrepreneurism
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Impact of National Culture on Entrepreneurism
Part 1
According to Kuratko (2014), entrepreneurism refers to the process of starting a new venture with the aim of attaining an economic gain. The distinguishing characteristic of entrepreneurs from ordinary investors is the willingness to accept and face risks. When describing an entrepreneur, five essential traits and characters are put into place. The disposition to take a risk is a primary trait. Secondly, entrepreneurs tend to be innovative in the sense that they disrupt the status quo to make their ideas work. They also tend to have strong analytical skills that lead to excellent decision-making. The ability to make decisions, especially under uncertainty, defines an entrepreneur. Additionally, they also exhibit self-confidence and self-motivation; they are self-driven and quite eager to learn from others. An additional but debatable character of entrepreneurs is their sense of humor and oversimplification during decision-making (Kuratko, 2014). National culture, on the other hand, is all about the norms and customs that exist among the citizens of a sovereign country.
Given the facts above, this paper aims at analyzing the role of national culture on entrepreneurism. The paper appreciates that, indeed, national culture has an impact on entrepreneurism and equally exhibits the contrary. As businesses become increasingly global, it is important to understand the role of diversified cultures on the entrepreneurship process. Businesses must, therefore, align their practices and values in accordance with the national culture in which they operate (Brooks, 2009).
The social background in which entrepreneurs are brought-up affects their values and traditions. The influence is attributable to the fact that entrepreneurs, being part of the community, adapt to the tenets and customs of the social order, which in turn influences their personality. The personality of an individual is essential as far as entrepreneurism is concerned. Personality is critical in that a it will determine whether an individual exhibits the standard entrepreneurial character traits as discussed above. Therefore, it is true to say that national cultures have an impact on entrepreneurism.
Part 2
Entrepreneurship is largely seen as a personal endeavor to establish a business, either with the goal of profit maximization or with the aim of creating a feeling of accomplishment driven by ambition. National culture on the other hand is viewed as the general trend within set boundaries, whereby establishing a business is mainly as an influence from peers, friends, family members, or even incentives from the governing authority.
Based on the principles of effectuation as described by Sarasvathy (2008), national cultures do not affect entrepreneurism. Effectuation refers to the logical thinking entrepreneurs apply in making decisions. The decisions mainly involve starting an economic entity under future uncertainties (Sarasvathy, 2008). Entrepreneurs from different social background, and national cultures by extension, exhibit the same pattern of effectuation. Accordingly, the consistent pattern of effectuation attests to the fact that national culture has no impact on entrepreneurism. The validity of the study to this paper is indubitable since the study was carried out across diverse cultures in the world.
From a practical point of vi...