The Effect of Culture and Environment on Entrepreneurship

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July 11, 2016

The Effect of Culture and Environment on Entrepreneurship


The culture and environment around the entrepreneur can also affect the growth of entrepreneurial activity in a country. We can see entrepreneurship development varies according to;

  1. How the country’s economic environment has been developed and structured.
  2. The society’s culture
  3. How failure is viewed and treated.


For example in a country where the cost of living is very high and there are very few alternatives for different lifestyles. Failure would be very burdensome and such a heavy loss, that the threshold for taking risks would be very low. This is because the cost of failing is so high, that getting back to the basics of life would be very tough.

In such a country it would be really problematic to encourage people to turn to a risky career in entrepreneurship.

Another example, would be of a country where the model of success lies in holding a stable corporate or government job. Since the path of entrepreneurship is not considered ‘right’ or as glamorous as these ‘safe and admired’ jobs, it would be considered unattractive and really risky.

Being tolerant to failure is another important factor. In especially Asian cultures, there is a very negative connotation attached to failing. Having ‘lose face’ is a huge concern to such societies and this leads to people taking the safer route and avoiding as much risk as possible.

The day you seem to have failed is the day people make you look like a failure. They look at you differently. But entrepreneurs must not make the mistake of looking at themselves differently, and entrepreneurs should not be influenced or affected by how others see them. Entrepreneurs should see failure and success with equanimity, treat failure as part of the process, and never lose sight of their goals and objectives. Entrepreneurs have to keep on trying, and the day they fail is the same day they re-start the whole process. Inderjit Singh – The Art and Science of Entrepreneurship

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