The relationship between national culture and national entrepreneurial activity

In this paper, I sought to link national culture and national entrepreneurial activity. Using data collected through Global Entrepreneurship Monitor and Hofstede's four dimensions of national culture, I found that individualism and total entrepreneurial activity (TEA) are negatively related, but that the other three dimensions are not significantly related to either TEA or FEA (firm entrepreneurial activity). The findings suggest that policy makers should create an environment and make policies that encourage collectivism so that entrepreneurship booms in the country or in different regions of a country. I also point out directions for future research.

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