Culture Matters to Entrepreneurship Policies Entrepreneurship Policies in
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Culture Matters to Entrepreneurship Policies : Entrepreneurship Policies in the U. S. versus China
CHINA U. S.
CULTURE IS. . . Culture is defined as a shared public context or communityspecific ideas about truth, goodness, beauty, efficiency, etc. Although individuals have diverse values, behavior, and attitudes, the concept of “culture” captures the common characteristics shared by individuals within a context.
THE CONCEPT OF ENTERPRENEURSHIP exploring new technological possibilities initiative taking organizing and reorganizing social economic mechanisms somewhat risk bearing
ENTERPRENEURSHIP POLICY enhancing and important source to foster entrepreneurship and to develope the economic in the society. The enivornmental forces come from (i. ) the private sector (ii. ) social aspects including enterpreneurial culture (iii. ) the public sector such as macro policies, business policies, and public safety
ENTERPRENEURSHIP POLICY
ENTERPRENEURSHIP POLICY A Global Entrepreneurship Monitor (GEM) survey found out that both the U. S. and china were among the countries with top scores for the effectives of their entrepreneurship policies and the scores for these two countries are very close. The U. S. scored 3. 36 and China scored 3. 15 1, 300 key informants, the participating national experts and entrepreneurs were asked for their opinion as to whether government policies and programs that aimed at supporting new and growing firms in their countries were effective.
Chinese Culture and the U. S. Culture U. S. CHINA Collective - Collective culture - Collective group interest - Social harmony and social uniformity vs. individual - Individualistic culture - Emphasizes individual achievements and rig - Social pluralism and social chaos
Chinese Culture and the U. S. Culture U. S. CHINA Power Distance : Relationship between the government and people - High Power distance Accept and welcome authority Seldom express their disagreement Unequal and hierarchical - Low Power distance Everyone tends to have a voice People work closely and may consult each Equal and independent
Chinese Culture and the U. S. Culture CHINA U. S. Uncertainty Avoidance : the extent to which societies tolerate ambiguity - High uncertainty avoidance - Events clearly predictable - Have less leeway for negotiation - Low uncertainty avoidance - Face more uncertainties and ventures - More opportunity to negotiate
Chinese Culture and the U. S. Culture U. S. CHINA High Context v. s. - Expect more of others than participants - Communicate less directly with each other - Tend to be more ambiguous, abstract, imprecise Low Context - High expectation among social members - Shared information - Need to be more direct, explcit, precise, and
Chinese Culture and the U. S. Culture matter : every corner of people’s life Culture matter in Social economic societies Culture influences social and economic development including policy formation. Entrepreneurship policies are influenced by social and economic context including history, culture, industrial structure, the current state of entrepreneurial activity, etc. CULTURE is an important force to shape entrepreneurship policy.
Entrepreneurship Policy and Culture matter in Social economic societies Culture influences social and economic development including policy formation. Entrepreneurship policies are influenced by social and economic context including history, culture, industrial structure, the current state of entrepreneurial activity, etc. CULTURE is an important force to shape entrepreneurship policy.
Relationship between government and businesses - The entrepreneurial process in China is controlled by the government Government economy Big entry barrier - local protection : “keep one eye looking at the market and the other eye at the mayor” Confucian hierarchical administration mode and absolute power of the emperor the entrepreneurial process in China is controlled by the government - Government play a small role in the development of Entrepreneurship Partner Enterprise or market economy : government intervene only when market appears “failure” Strong concept of equality from history of immigrant country
Importance of leadership and authority - Policies only from national leader high power distance and high uncertainty avoidance make the social authority extrem not allow total pluralism yet but globalization are changing China into more pluralistic - Policies not only from President low power distance and low uncertainty avoidance - everyone have equally important Pluralism can motivate the growth of entrepreneurial miliu
Rule of Law - Lack a sufficient rule of law for good entrepreneurial milieu Homogeneous society with Han culture - Many monetary and fiscal policies and rule of law to motivate entrepren and protect fair competition low-context culture, where rules tend to be explained clearly -
Small Business or Large Business - Focus on large or medium sized enterprise (LMEs) Type 2 “Techno-entrepreneurship policy” Group benefits are emphasized more than that of individuals - Focus on small business (SBA) Type 1 “focuses social inclusion” Market driven economy
Conclusion CHINA High Power Distance Dominance of Government in Business and Entrepreneurship Policy High Context Lack of explicitly written laws for entrepreneurship development Collectiveness Policy focus on LMEs, not the small businesses
Conclusion U. S. Low Power Distance Low Context ( by the immigrant culture ) Individualism Smaller role of Government Detailed written laws to regulate Entrepreneurial activities Small Business extremely important / Entrepreneurship policy focuses on benefiting SMEs
Globalization is transforming the global culture and this change is dramatically affect entrepreneurship. Entrepreneurs have to understand global market mechanism. China’s entrepreneurship policy therefore needs to integrate Western style entrepreneurial milieu and China’s unique culture perspectives. Instead of just following developed economies entrepreneurship development path.
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