The entrepreneurial culture (page 2 of 2)

(Most females that have succeeded represent the exception rather than the rule).

3. High vs. Low power distance:

This dimension deals with how a society deals with the people acceptance of others "right" to exert power over them, even harsh power.

By definition, the Arab culture is one that has, over the years, emphasizes the existence of such inequalities and the importance of respect and looking up to our superiors. This is again evident in the high scores achieved by both Mexico and India, 81 and 77 respectively.

How does this dimension affect entrepreneurial activities? Given how importance inequalities are, many of the people at the lower end of the pyramid may find difficulties being accepted in the culture as ones that have high chances of success. This likely impacts their perception of their own worth or right to step out of role and be individualistic risking, in the process, being disapproved by other members of society.

4. Uncertainty avoidance:

Out of the four factors I believe this is the most important dimension. Uncertainty avoidance deals with how members of different cultures deal with ambiguous situations. Higher scoring nations feel uncomfortable with ambiguous situations and vise versa.

How does Mexico hold up in this dimension? They had a score of 82. My assumption is that the Arabic culture will score at least as high if not higher than that. Arabs have a rich history of exploration, trade and multi-cultural experiences.

How does this help explain the shortage of entrepreneurial activities? Risk is built into entrepreneurial activities. The fact that many people have to leave their secured jobs to start a new business makes it a risky venture living in modern society. As such, it is not surprising to find that many Arabs choose the security and safety of a permanent job over the risks of starting a new business.

Although one can speculate back and forth and many exceptions and limitations to this particular theory maybe found, it still helps define the problem and shed some light on why it exists.

Whether this trend would continue or not is still to be seen. Many of us have experienced a quantum leap in cultural values and practices over the last 20 year and what used to be a rule had in many cases become an exception. As such, I would not be surprised as more and more entrepreneurs start coming out of this region.