engleski

Modification of entrepreneurial behaviour by cultural factors in emerging economy

The economy of Eastern Slavonia, the northeastern part of Croatia, is traditionally dominated by agriculture and large-scale industry. Before the brake down of former Yugoslavia these were organised as "socially owned" enterprises. The privatisation process has been slow with many bankruptcies. Consequently, the unemployment rate is rapidly growing and entrepreneurship is one perceivable way to improve economic development. The present study examines how entrepreneurial behaviour in Eastern Slavonia is influenced by cultural factors and support programmes. The cultural factors have direct effect on the attitudes and values of the entrepreneur, but also have indirect influence through their impact on legal systems and public administration. Our proposition is that a culturally based factor will have similar influence on the attitudes of entrepreneurs coming from different social groups. However, these common traits will be modified if the entrepreneur participates in training programmes and has previous business experience. The propositions are investigated in a case study approach. Three entrepreneurs with different backgrounds and recent experience are interviewed and their attitudes mapped by a questionnaire. The entrepreneurs had very similar assessments of the cultural factors of the region and that the consolidated effect was negative to entrepreneurship. This is also reflected in an unfavourable business environment and insufficient government support of entrepreneurship. The similarity is not carried over to their motivation for going into business and their very approach to conducting business, where distinct differences are found. There is a shift towards more appreciation of entrepreneurship in Eastern Slavonia but this is a slow process. Cultural factors that inhibit change can be found both at individual level and at societal level. Public programmes can weaken the inhibiting factors. This will require local initiatives to overcome previous scepticism to central government control. Fortunately, such local initiatives are being taken in Eastern Slavonia.

entrepreneurship; cultural factors; capabilities; external support; Eastern Slavonia

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