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Understanding the Role of Culture and Economic Conditions in Entrepreneurship

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Entrepreneurship, Regional Development and Culture

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Abstract

This chapter focuses on the joint influence that cultural values (relatively stable informal institutions) and the (more rapidly changing) economic conditions play in explaining the total entrepreneurial activity (TEA) in countries with different levels of development. Data for 55 countries coming from the Global Entrepreneurship Monitor (GEM) and the Schwartz Value Survey (Individualism and collectivism. Theory, method, and applications, Thousand Oaks, CA, 85–119; Comparative Sociology 5:137–182, 2006) are analyzed. General results indicate that the income level is negatively related to entrepreneurship, while the relation is positive for the income growth. Regarding culture, the results show that only in higher income countries, Autonomy values boost entrepreneurial activity. Additionally, higher entrepreneurship is found in countries where Egalitarianism predominates, and the effect becomes stronger as income level rises.

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Notes

  1. 1.

    Since 1999, the GEM project measures and compares the entrepreneurship levels for different time periods and countries. Available from the GEM consortium web page: http://www.gemconsortium.org/key-indicators.

  2. 2.

    Following Schwartz (2006b), Autonomy is operationalized as the average of Intellectual and Affective Autonomy.

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Author information

Authors and Affiliations

  1. Applied Economics I, University of Seville, Av. Ramon y Cajal 1, Seville, 41018, Spain

    Francisco Liñán, Inmaculada Jaén & Francisco J. Ortega

Authors
  1. Francisco Liñán
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  2. Inmaculada Jaén
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  3. Francisco J. Ortega
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Corresponding author

Correspondence to Francisco Liñán .

Editor information

Editors and Affiliations

  1. Department of Business Administration, Universitat Politècnica de València Dpto de Org de Empresas, Valencia, Spain

    Marta Peris-Ortiz

  2. University of Chile Dep. Management Control and Information, Santiago, Chile

    José M. Merigó-Lindahl

Annex 1. List of Countries Analyzed

Annex 1. List of Countries Analyzed

In brackets, years in which the SVS data were obtained

Argentina (1993, 1995)

Jordan (2002)

Australia (1988, 1990, 1992, 1996, 1999)

Latvia (1998)

Austria (1996, 1998)

Malaysia (1989, 2003)

Belgium (1991, 1995, 2002)

Mexico (1990, 1996)

Bolivia (1993)

Netherlands (1988, 1996, 1998)

Bosnia-Herzegovina (2002)

New Zealand (1988, 1994, 1998)

Brazil (1989, 1991, 1993, 1995)

Norway (1994)

Canada (1992, 2001, 2002)

Peru (1996, 2002, 2003)

Chile (1994, 1995, 1997, 1998)

Philippines (1996, 1997, 2000)

China (1988, 1989, 1995)

Poland (1988, 1990, 1997, 2003)

Costa Rica (2002, 2003)

Portugal (1989, 1993)

Croatia (2002)

Romania (1996)

Denmark (1991, 1995)

Russia (1993, 1995, 1996, 1999, 2002)

Egypt (2004)

Singapore (1991, 1995, 1997)

Finland (1989, 1991–1993, 1995, 1997, 1998, 2001)

Slovenia (1992)

France (1991, 1994–1996, 1998)

South Africa (1992, 1994, 1996, 2003)

Germany (1989–1991, 1994, 1996)

South Korea (1993, 2002)

Ghana (1995)

Spain (1988, 1996, 2002)

Greece (1989, 1996)

Sweden (1992–1994, 1998)

Hong Kong (1988, 1996, 2001)

Switzerland (1990, 1996)

Hungary (1990, 1995)

Thailand (2005)

India (1991, 1992)

Turkey (1990, 1993, 1995, 2000)

Indonesia (1992, 1995)

Uganda (1995)

Iran (2000)

United Kingdom (1990, 1995)

Ireland (1995, 2000)

USA (1988, 1989, 1991–1996, 2000)

Israel (1989, 1990, 1994, 1995, 1996)

Venezuela (1989, 1991, 1993, 1994)

Italy (1989, 1991, 1997, 2002)

Yemen (2003)

Japan (1989, 1990)

 

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Liñán, F., Jaén, I., Ortega, F.J. (2015). Understanding the Role of Culture and Economic Conditions in Entrepreneurship. In: Peris-Ortiz, M., Merigó-Lindahl, J. (eds) Entrepreneurship, Regional Development and Culture. Springer, Cham. https://doi.org/10.1007/978-3-319-15111-3_4

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