Business Management notes 9 PDF

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Ciaran Lowney's Business Management notes 9 (28/11/17) Influence of culture and contains on entrepreneurship 

Starting a new business many factors influence entrepreneur intention like desirability, feasibility, and entrepreneurial experience, but it varies culture to culture and nation to nation, within country culture varies, researchers are still unclear, the overall impacts of culture in entrepreneur intention, Every country has its own culture, its values, norms and beliefs that affects the entrepreneurial intention, at some stages the culture plays an important role in decision making.

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The six determinants or factors that influence culture: In different countries of the world, culture is usually different. However, there are various known determinants of culture, and social structure is one of them. The meaning of this is how the society associates among themselves as well as the way the people are organized. A society may embrace either individual or group organization; in an individual organization, individual attributes are much more emphasized, while in a group organization, the mostly held attributes are for the group. It is therefore the responsibility of the organization to ensure observance of the organization as it pushes its agenda of expansion in the given society. Education is another determinant of culture in a society, as having a society that has embraced formal education may give an organization a competitive edge through provision of the needed labour. Language is also another determinant of culture necessary as knowledge of it eases communication breakdown. Finally, the last but not the least determinants of Determinants of Culture: Culture, norms and value systems Social Subculture Political Philosophy Language Economic Philosophy Education Religion.

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Hofstede's cultural dimensions’ theory is a framework for cross-cultural communication. It describes the effects of a society's culture on the values of its members, and how these values relate to behavior, using a structure derived from factor analysis.  Power distance index (PDI): The power distance index is defined as “the extent to which the less powerful members of organizations and institutions (like the family) accept and expect that power is distributed

unequally.” In this dimension, inequality and power is perceived from the followers, or the lower level. A higher degree of the Index indicates that hierarchy is clearly established and executed in society, without doubt or reason. A lower degree of the Index signifies that people question authority and attempt to distribute power.  Individualism vs. collectivism (IDV): This index explores the “degree to which people in a society are integrated into groups.” Individualistic societies have loose ties that often only relates an individual to his/her immediate family. They emphasize the “I” versus the “we.” Its counterpart, collectivism, describes a society in which tightlyintegrated relationships tie extended families and others into ingroups. These in-groups are laced with undoubted loyalty and support each other when a conflict arises with another in-group.  Uncertainty avoidance index (UAI): The uncertainty avoidance index is defined as “a society's tolerance for ambiguity,” in which people embrace or avert an event of something unexpected, unknown, or away from the status quo. Societies that score a high degree in this index opt for stiff codes of behaviour, guidelines, laws, and generally rely on absolute Truth, or the belief that one lone Truth dictates everything and people know what it is. A lower degree in this index shows more acceptance of differing thoughts/ideas. Society tends to impose fewer regulations, ambiguity is more accustomed to, and the environment is more free-flowing.  Masculinity vs. femininity (MAS): In this dimension, masculinity is defined as “a preference in society for achievement, heroism, assertiveness and material rewards for success.” Its counterpart represents “a preference for cooperation, modesty, caring for the weak and quality of life.” Women in the respective societies tend to display different values. In feminine societies, they share modest and caring views equally with men. In more masculine societies, women are more emphatic and competitive, but notably less emphatic than the men. In other words, they still recognize a gap between male and female values. This dimension is frequently viewed as taboo in highly masculine societies.

 Long-term orientation vs. short-term orientation (LTO): This dimension associates the connection of the past with the current and future actions/challenges. A lower degree of this index (short-term) indicates that traditions are honored and kept, while steadfastness is valued. Societies with a high degree in this index (long-term) views adaptation and circumstantial, pragmatic problem-solving as a necessity. A poor country that is short-term oriented usually has little to no economic development, while long-term oriented countries continue to develop to a point.  Indulgence vs. restraint (IND): This dimension is essentially a measure of happiness; whether or not simple joys are fulfilled. Indulgence is defined as “a society that allows relatively free gratification of basic and natural human desires related to enjoying life and having fun.” Its counterpart is defined as “a society that controls gratification of needs and regulates it by means of strict social norms.” Indulgent societies believe themselves to be in control of their own life and emotions; restrained societies believe other factors dictate their life and emotions

 Three model of entrepreneurship potential  Model A: Ireland  Model B: American and China 

Video: the spirit of small entrepreneurship in Thailand  Poor people start their business with their personalities and capabilities. Their small businesses show how the country's enterprises have diversified, grown and survived amid a rapidly changing marketplace and even led the marketplace.  Do research to understand local people, which can help their government to make policy to support their business.

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Six key area of ecosystem for entrepreneurship 1. Finance: Includes access to debt; access to venture capital; access to grants; access to angels; banks; microfinance institutions; public capital markets; development finance institutions; government finance.

2. Business

Support:

Includes

industry

networks;

incubators/accelerators; legal/accounting services, business mentors and technical advisers; credit rating agencies. 3. Policy: Includes tax rates; tax incentives; costs to so start a business 4. Markets: Includes domestic corporations; international corporations; consumers; distribution networks; retail networks; marketing networks 5. Human Capital: Includes high schools; universities; technical training institutes; community colleges. 6. Infrastructure: Includes electricity providers, transport providers; communications (mobile, internet); other utility providers (gas, water). 7. Research & Development: Includes public research centres and laboratories; private research centres and laboratories. 8. Culture:

Includes

associations,

social

entrepreneurship.

media,

government,

organizations

that

schools, support

professional a

culture

of...