Entrepreneurial Culture

CultureHuman product of social interactionCumulative-handed from generation to generationLearnt by each personMaterial as well as non material

Nature of CultureBasic beliefs and assumptions about the companyEmotional aspectReflect historyInherently symbolicSubstance and Form

Components of CultureValuesRules of ConductVocabularyMethodologyRitualsMyths and Stores

Levels of CultureThree levelsAssumptions SubstanceValues SubstanceArtifacts and Creations Form

Culture underlies all components of work environment that support entrepreneurship

Elements of an Entrepreneurial CulturePeople and empowerment focusedValue creation through innovation and changeAttention to the basicsHands-on managementDoing the right thingFreedom to grow and to failCommitment and personal responsibilityEmphasis on the future and a sense of urgency

Individualism vs CollectivismIndividualismSelf-orientationEmphasis on self-efficiency and controlPursuit of individual goalsValue system driven by pride in their own accomplishmentsCollectivismGroup-orientationSubordination of personal interests and goalsEmphasis on sharingConcern for group welfareEntrepreneurial Intensity is achieved by balance between individualism and collectivism

FailureEntrepreneurial Firm embraces itPerceivedPsychologicalTypes: Moral, Personal, UncontrollableFailure can enhance success only if learning is taking place

Sub-cultures of entrepreneurshipBusiness Ethics

Productivity Culture

Total Quality Culture

Individual leaders, Corporate values

Entrepreneurial vs. Administrative Culture

DimensionsCharacteristics- Entrepreneurial cultureCharacteristics- Administrative cultureStrategic orientationDriven by perception of opportunityBy controlled resources

Commitment to seize opportunityRevolutionary with short durationEvolutionary with long duration

Control of resourcesRentOwned

Management structureFlatHierarchy

Barriers to entrepreneurshipLack of viable conceptLack of market knowledgeLack of technical skillsComplacencyLegal constraintsMonopoly