This research investigates in what context national culture, personality traits and external influences have an impact on entrepreneurial activity. The cross-cultural research has been conducted in Germany and the UK.
Two sets of questionnaires, issued in German and English language, have been distributed to entrepreneurs in both countries. 117 replies have been qualified for the research analysis.
The research has identified similarities of both countries in key traits of entrepreneurial behaviour such as assertiveness, emphasis on work goals and materialism. In addition, differences in cultural characteristics could be detected. Germany showed to be less risk loving as the UK that can be reflected by the higher level of bureaucracy. Gender, bureaucracy and financial issues have been established as main entry barriers and threats of business start-ups.
Recommendations have been drawn from the survey and it has been proposed that a simplification of bureaucracy in Germany due to an elimination of the ‘advance return for tax on sales and purchases’ would support entrepreneurs in the business start up stage. Additionally, it has been suggested that a decrease of taxation for angel and venture investors would create additional financial support for entrepreneurs.
Table of Contents
1. Introduction
1.1 Top-level research questions
2. Preliminary Literature Review
2.1 Definition of Entrepreneurs
2.2 Culture
2.3 Personality traits
2.4 Public Policy and Human Capital
3. Research Methods
3.1 Research approach
3.2 Information requirements
3.3 Data collection techniques and procedures
3.4 Ethical issues
4. Findings
Conclusion
Recommendations
Bibliography
Appendices
1. German Questionnaire.
2. UK Questionnaire
Research Objectives and Themes
This study aims to perform a cross-cultural analysis of the factors influencing entrepreneurial activity in Germany and the United Kingdom, specifically examining how national culture, individual personality traits, and external environmental factors affect the decision to start a business.
- The impact of national culture on entrepreneurial intentions and behavior.
- Comparative analysis of personality traits among German and British entrepreneurs.
- Identification of entry barriers and threats for business start-ups.
- The influence of public policy, human capital, and economic factors on new venture creation.
Excerpt from the Book
2.1 Definition of Entrepreneurs
Many definitions have been established for entrepreneurship or an entrepreneur. In 1734, Richard Cantillon, cited in Boyett (1997), describes as first an entrepreneur as a person “which is driven by a desire for profit and possessing in the ability to risk buying cheap and selling dear.” Low et. al. (2003) describes entrepreneurship primarily as “creation of new enterprise”. Stevenson et. al. (1989) adds elements of the process to it: “Entrepreneurship is the process of creating value by bringing together a unique package of resources to exploit an opportunity.” Ultimately, Burns (2007, p. 11) combines those definitions in one single and coherent definition:
“Entrepreneurs use innovation to exploit or create change and opportunity for the purpose of making profit. They do this by shifting economic resources from an area of lower productivity into an area of higher productivity and greater yield, accepting a high degree of risk and uncertainty in doing so.“
Summary of Chapters
1. Introduction: Outlines the research scope, comparing entrepreneurial drivers in Germany and the UK, and establishes the primary research questions regarding cultural and personal attributes.
2. Preliminary Literature Review: Synthesizes existing theories on entrepreneurship, focusing on definitions, Hofstede's cultural dimensions, personality traits, and the role of public policy and human capital.
3. Research Methods: Details the quantitative research design, information requirements, and the data collection process using questionnaires distributed in both Germany and the UK.
4. Findings: Presents the analysis of 117 survey responses, highlighting differences in risk perception, bureaucracy, and motivations between German and British entrepreneurs.
Conclusion: Summarizes the key research outcomes, noting that while similarities exist, distinct cultural and regulatory differences impact the entrepreneurial landscape in both nations.
Recommendations: Proposes policy changes, such as simplifying tax procedures and increasing funding support, to foster a more favorable environment for entrepreneurs.
Keywords
Entrepreneurship, Cross-Cultural Research, Germany, UK, Hofstede's Cultural Dimensions, Personality Traits, Business Start-ups, Entry Barriers, Public Policy, Human Capital, Risk Aversion, Bureaucracy, Motivation, Serial Entrepreneurship, Small and Medium-sized Enterprises.
Frequently Asked Questions
What is the core focus of this research?
The research explores the various socio-cultural, individual, and economic factors that influence the decision-making process for individuals starting a business in Germany and the UK.
Which specific themes are investigated?
The study centers on the impact of national culture (using Hofstede’s dimensions), the role of personality traits, and external environmental factors like bureaucracy and government policy.
What is the primary objective of this work?
The main goal is to identify commonalities and differences between German and British entrepreneurs and provide data-driven recommendations to enhance the entrepreneurial environment.
Which methodology was utilized?
The research employs a quantitative approach, utilizing two sets of online questionnaires to gather primary data from 117 entrepreneurs across both countries, supported by secondary data analysis.
What topics are covered in the main body?
The main body covers the literature review of existing entrepreneurship theories, the detailed research methodology, and a comprehensive analysis of survey findings regarding motivation, risk, and entry barriers.
Which keywords define this study?
Key terms include Entrepreneurship, Cross-Cultural Research, Hofstede’s Cultural Dimensions, Entry Barriers, and Human Capital.
How does the UK compare to Germany regarding bureaucracy?
The study finds that Germany faces higher levels of bureaucracy, with entrepreneurs identifying tax complexity and strict regulations as significant entry barriers compared to the UK.
What is the role of risk in the entrepreneurial process?
Risk is found to be a central factor, with the research showing that German entrepreneurs tend to value job security higher than their UK counterparts, which is linked to their cultural uncertainty avoidance index.
How do serial entrepreneurs differ between the two nations?
The research indicates a higher occurrence of serial entrepreneurship among participants in the UK compared to Germany.
What recommendations does the author make for the German government?
The author suggests simplifying the bureaucracy, specifically through the elimination of the 'advance return for tax on sales and purchases' to support entrepreneurs at the start-up stage.
- Quote paper
- BSc (Hons.) International Business Corinna Schmidt (Author), 2011, Factors influencing Entrepreneurship, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/204296
