How culture can influence entrepreneurship

 

Barclays and KCB, two of the top five Kenyan banks, have plans to lay off staff to reduce expenses. FILE 

By JOINT REPORT The EastAfrican

Posted  Saturday, March 9  2013 at  20:18

By Christian Gaya Business Times March 8-15, 2013

Why and how do people become entrepreneurs? Why is entrepreneurship beneficial to an economy? How can our government encourage young entrepreneurship, and, with it, economic growth; The number of people engaged in medium and small enterprises increase as a result of new enterprise being started and through an expansion of existing activities. As a partial offset to these increases, employment declines when existing business cease operations.

The culture of a community also may influence how much entrepreneurship there is within it. Different levels of entrepreneurship may stem from cultural differences that make entrepreneurship more or less rewarding personally. A community that accords the highest status to those at the top of hierarchical organizations or those with professional expertise may discourage entrepreneurship. A culture or policy that accords high status to the "self-made" individual is more likely to encourage entrepreneurship.

There is a need to formulate a concrete guidance which should promote teaching and learning strategies that 

will: foster enterprising and entrepreneurial mindsets,  develop enterprising and entrepreneurial graduates help students, develop enterprising and entrepreneurial capabilities that can be applied in a range of contexts, encourage students to consider new venture creation and self-employment as valid graduate career options  foster an enterprising culture in society including within employment (intrapreneurship), help students develop an awareness of intellectual assets and enhance their capacity to manage and exploit them  increase the number of graduate start-up businesses  enhance graduates' lifelong learning skills, personal development and self-efficacy, allowing them to contribute to economic growth and to society more generally.

Enterprising behaviours such as adaptability, flexibility and the ability to work in situations of ambiguity and risk correlate with employers' needs. Enterprising skills such as team working and the ability to demonstrate initiative and original thought, alongside self-discipline in starting tasks and completing them to deadline, are essential attributes that have been identified by employers as priority issues.

Employers need thinkers who can adapt and change direction according to current needs. The traditional approach of studying larger businesses and commenting passively on trends and factors that have influenced development may help understanding, but is no longer enough to prepare graduates for career-making in a complex and challenging economy. It does not promote the thinking skills and approaches needed for success in a predominantly micro and small business environment.

The role of entrepreneurship and an entrepreneurial culture in economic and social development has often been underestimated. Over the years, however, it has become increasingly apparent that entrepreneurship does indeed contribute to economic development. Transforming ideas into economic opportunities is the crux of entrepreneurship. History shows that economic progress has been significantly advanced by pragmatic people who are entrepreneurial and innovative, able to exploit opportunities and willing to take risks.

Entrepreneurs produce solutions that fly in the face of established knowledge, and they always challenge the status quo. They are risk-takers who pursue opportunities that others may fail to recognize or may even view as problems or threats. Whatever the definition of entrepreneurship, it is closely associated with change, creativity, knowledge, innovation and flexibility-factors that are increasingly important sources of competitiveness in an increasingly globalized world economy. Thus, fostering entrepreneurship means promoting the competitiveness of businesses.

Private sector development and entrepreneurship development are essential ingredients for achieving the Millennium Development Goal of reducing poverty. While sound macroeconomic policies and providing market access are crucial, emerging markets need to nurture and develop entrepreneurs able to take advantage of opportunities created by globalization.

For many developing countries, private sector development has been a powerful engine of economic growth and wealth creation, and crucial for improving the quality, number and variety of employment opportunities for the poor. Economically, entrepreneurship invigorates markets. The formation of new business leads to job creation and has a multiplying effect on the economy.  Socially, entrepreneurship empowers citizens, generates innovation and changes mindsets. These changes have the potential to integrate developing countries like Tanzania into the global economy.