By Repton Salisbury
The effect of entrepreneurial activity on economic development has been researched thoroughly. New firm creation spurs economic growth by creating employment opportunities, cultivating innovation, and encouraging competition. Globally, there are countless areas that could benefit from a livelier entrepreneurial ecosystem. So how does a government or population first spur entrepreneurial activity? An entrepreneur’s perceptions are among the most powerful factors that impact the life or death of a new venture, but the determinants that influence how these perceptions first form are still largely unknown. Using survey data collected by the Global Entrepreneurship Monitor in 2010 across the United States, Japan, Switzerland, Israel, United Kingdom, Peru, Russia, Iran, and China, I conduct binary logistic regressions of individual level characteristics, social ideals, cultural norms, human development, and other environmental attributes on the most important perceptions of entrepreneurs. These perceptions have been identified by previous research as an entrepreneur’s perception of local opportunities, internal skills, and fear of failure in creating a new venture. I find that several social, cultural, and political values have a significant effect on the psychological behavior of nascent entrepreneurs.
Advisor: Alison Hagy, Grace Kim | JEL Codes: L2, L26, O17 | Tagged: Culture, Entrepreneurship, Perceptions, Venture Creation