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Entrepreneurial Culture and Economic Growth

In: Business and Management

Submitted By IoanaSuper
Words 671
Pages 3
The causes of long term growth differences have been the object of many research studies and debates in the economic history field. While some blame it on geography or simply luck, others consider technology improvements as being a relevant cause for growth. This essay will analyze the relationship between culture and economic growth through a closer look on entrepreneurial culture and its effects.
There are many ways in which one can define culture and as many in which to describe entrepreneurial behavior. Studies conducted, both from an economic perspective (focused on the effects and therefore the relationship with economic growth) and a social / psychological one (concerned with the origins and trait research) have in common 3 attributes defining entrepreneurial behavior: need for achievement, internal locus of control and risk taking predisposition. The need for achievement was linked by McClelland to a country’s economic success in one of the first studies trying to define entrepreneurial culture.
McClelland’s thesis states that countries characterized by high levels of N achievements have higher levels of economic development but was contested by more than e few economists. In other word countries that have high scores on entrepreneurial culture should have high rates of entrepreneurship which will lead to economic success. The main flaw is related to the methods of measurement (by analysis of widespread folk tales and contemporary children schoolbooks) of the N achievement for a country and the stretching of the data; basically there are no empirical results to prove the McClelland’s thesis.
Furthermore, economists like Wennekers and Thurik take issue with the individual level of entrepreneurship and the aggregate level characterizing a nation. Findings related to specific traits and motivations of individuals who undertake actions as entrepreneurs cannot...

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