Elitists, risk-takers, and rugged individualists? An exploratory analysis of cultural differences between entrepreneurs and non-entrepreneurs

Abstract

This study examines whether or not certain values are likely to be held consistently by entrepreneurs, which are not held by non-entrepreneurs. The four underlying dimensions of culture from Hofstede's 1980 study--power distance, individualism, uncertainty avoidance, and masculinity--are used to derive a set of hypotheses suggesting that each dimension exists for entrepreneurs regardless of their cultural orientation. Responses from 1,217 entrepreneurs and 1, 206 non-entrepreneurs, in nine countries, were used to examine these hypotheses. Findings supported all five initial hypotheses, indicating that: entrepreneurs share a predictable set of values, when compared with non-entrepreneurs; entrepreneurs do not appear to mind social inequality, but expect to be at the top of any social hierarchy due to their own merit; entrepreneurs favor independent action and separation from groups; entrepreneurs can tolerate risk and ambiguity; and entrepreneurs are more highly motivated to obtain economic and recognition rewards than are non-entrepreneurs. (SFL)