Culture and entrepreneurship : a case study of East Asia

Abstract

The study conducted statistical analyses, making use of the GEM’s entrepreneurship data for the period of 2003-2017, cultural conceptualization from Schwartz (1985-2008) and GLOBE (2004), and the economic development level reflected on the income level (GDP per capita) from the World Bank from 2003 to 2017. The study used the data to explore the implications of national culture on entrepreneurship and on the economic output, especially in East Asian countries. Entrepreneurship in the study is examined in terms of its motivations, which are necessity-based entrepreneurs and opportunity-based entrepreneurs. The 15 years of entrepreneurship and income level data studied capture the trend of entrepreneurship, culture, and income level of the countries’ sample. The sample is 45 countries, which span 6 continents and consist of countries from different economic stages. Linear regression and cluster analysis were performed on the data set. To analyze the results, quantitative methods are selected. The findings show that entrepreneurship and culture can be used to explain the countries’ economic condition, and certain cultural values can either inhibit or encourage entrepreneurial activities in the world and East Asia specifically. The significance of the study is to provide a framework to understand the effect of culture on entrepreneurship and economic development, which can serve to give a better understanding of entrepreneurship and could be used to develop policies that promote entrepreneurship and further drive the nation’s economic growth.