This thesis examines the effect of cultural factors on entrepreneurship in different eco-systems including attitudes and the role of journalism.
The object of this thesis is an exemplary examination of the question in a national context, whether and to what extent cultural dimensions influence individual’s propensity to found a start-up. The entrepreneurial activities in Germany and the United States differ from each other which is also reasoned by different value systems and attitudes. Indications of rather an individualist or collectivist and rather a risk-averse or risk-affine attitude towards start-ups and its foundation will be focused upon. Building on Hofstede’s research on cultural dimensions, newspaper and blog articles from the United States and Germany dealing with start-up foundations and the attitude of the respective society on start-ups including the founders’ views will be analyzed. Since all cultural dimensions are intercorrelated, quantifying the effects of how much single cultural dimensions influence start-up foundations while excluding the influence of other dimensions is difficult.
Therefore, the thesis does not examine the effects of the above mentioned two cultural dimensions isolated from other cultural factors, but it sets a focus on those two dimensions by analyzing statements and ideas published in newspaper and blog articles that deal with founders and start-ups.
Table of Contents
1. Introduction
2. Theoretical Background: Culture & Entrepreneurial Activity
2.1 Culture
2.2 National Culture
2.3 Assessing Cultural Difference
2.3.1 Cultural Dimensions
2.3.2 Individualism & Collectivism
2.3.3 Risk Aversion & Risk Affinity
2.4 Start-ups
3. Content Analysis: Cultural Factors influencing Start-up Foundation
3.1 Methodology
3.2 Influence of Individualistic & Collectivistic Attitudes of German Society
3.3 Influence of Individualistic & Collectivistic Attitudes of US-American Society
3.4 Influence of Risk-averse & Risk-taking Attitudes of German Society
3.5 Influence of Risk-averse & Risk-taking Attitudes of US-American Society
3.6 Discussion
4. Conclusion
Objectives & Core Topics
This thesis investigates the impact of cultural factors on the propensity of individuals to found start-ups within a national context, specifically comparing Germany and the United States. It explores how cultural dimensions, particularly individualism versus collectivism and risk aversion versus risk affinity, influence entrepreneurial activity as reflected in journalistic discourse.
- The influence of national culture on entrepreneurial behavior.
- Individualism and collectivism in German and US-American societies.
- Risk aversion and risk affinity as determinants of start-up success.
- The role of journalistic publications in shaping societal attitudes toward entrepreneurship.
- A comparative analysis of the German and Silicon Valley entrepreneurial ecosystems.
Excerpt from the Book
1. Introduction
Entrepreneurship, especially a knowledge- and technology-intensive start-up culture, is progressively being recognized as a key factor for sustainable economic growth (Radziszewska 2014: 35, Carvalho et al. 2016: 41). Considering the economies of various countries around the world, it is observable that in some regions start-ups are being founded more often than in others and that the importance of entrepreneurship is seen differently (Lee and Peterson 2000: 403).
Silicon Valley, an area of approximately 2,900 square meters – almost as small as Monaco – in the state of California in the United States, is the largest conurbation of innovative, fast-growing, and highly successful young companies, so-called “start-ups” (Carvalho et al. 2016: 42). Silicon Valley's high density of technology companies, the resulting networking effects and the presence of renowned create the ideal conditions for an eco-system nurturing business start-ups. As a result, a lively start-up scene has developed there over the past decades. Silicon Valley is the hub of many major IT and high-tech companies, making it one of the most important centers for products/services in the technology industry worldwide. Former start-ups as such as Apple Inc., Facebook Inc., Google Inc., and Tesla Inc., which were founded there, have long since become global companies. Many people refer to them as being the product of a unique way of life called Silicon Valley, which has developed into the guiding culture of the digital age (Keese 2014: 11).
Summary of Chapters
1. Introduction: This chapter highlights the significance of entrepreneurship for economic growth and introduces the comparative focus on Germany and Silicon Valley.
2. Theoretical Background: Culture & Entrepreneurial Activity: This section defines key concepts such as national culture, individualism, collectivism, and risk management, providing a framework for the subsequent analysis.
3. Content Analysis: Cultural Factors influencing Start-up Foundation: This chapter details the qualitative methodology and analyzes how specific cultural values in Germany and the U.S. shape attitudes toward founding new businesses.
4. Conclusion: The author summarizes the findings, confirming that cultural and journalistic factors significantly impact start-up dynamics, and suggests policy improvements for Germany.
Keywords
Entrepreneurship, Start-ups, National Culture, Individualism, Collectivism, Risk Aversion, Risk Affinity, Silicon Valley, Germany, Journalism, Content Analysis, Economic Growth, Innovation, Business Foundation, Self-realization.
Frequently Asked Questions
What is the core focus of this thesis?
The thesis examines how cultural factors—specifically individualism/collectivism and risk aversion/affinity—influence the propensity to start a business in Germany versus the United States.
Which key thematic fields are covered?
The work explores national culture, entrepreneurial ecosystems, the psychological drivers of founders, and the role of the media in shaping public opinion regarding start-ups.
What is the primary research goal?
The goal is to determine whether and to what extent specific cultural dimensions influence an individual's motivation and ability to found a start-up in the respective national contexts.
Which research methodology is employed?
The author uses a qualitative content analysis of 301 entries gathered from 42 German and US-American newspaper and blog articles to identify recurring themes and hypotheses.
What is discussed in the main body?
The main body breaks down the influence of cultural dimensions on German and American society, analyzes the obstacles to entrepreneurship, and compares the environments of Berlin/Germany and Silicon Valley.
Which keywords characterize this work?
Key terms include entrepreneurship, national culture, individualism, collectivism, risk aversion, Silicon Valley, and start-up foundation.
How does German culture differ from the U.S. regarding risk?
The research suggests that Germany tends to be more risk-averse, valuing stability and often stigmatizing failure, whereas the U.S. ecosystem—particularly in Silicon Valley—often views risk and failure as valuable learning experiences.
Does the author suggest that journalism affects entrepreneurship?
Yes, the author argues that journalism acts as an intermediary, shaping the collective memory and societal attitudes toward start-ups by emphasizing either the risks or the potential for innovation.
What is the author's conclusion regarding Germany's start-up culture?
The author concludes that while Germany has a strong economy, it needs to rethink its cultural values—specifically by de-stigmatizing failure—to foster a more dynamic and competitive start-up environment.
- Quote paper
- Magdalena Pusch (Author), 2017, The Influence of Cultural Factors in Attitudes towards Start-ups, Munich, GRIN Verlag, https://www.grin.com/document/412444
