Entrepreneurial Intentions Among Youth: Rethinking the Culture-Entrepreneurship Relationship in India
Entrepreneurship, measured in terms of firm creations, business ownership and self-employment rates has spatio-temporal variations. While variations over time are linked to the economic transformation, technological development and exploitation of new markets, variations across countries and regions are attributed to institutional and cultural contexts. In other words, the relative inclination of people of some country towards entrepreneurship suggests that there are other explanatory factors than just economic factors underpinning entrepreneurship. Literature is replete in theorists contending that culture has a role next to structural factors in explaining the cross-nation variations in entrepreneurial activity. This study accordingly aimed to unravel the role of culture in promoting entrepreneurship in India. The paper uses Theory of Planned Behaviour (TPB) and Hofstede’s Cultural dimensions as its theoretical anchors. Using causal research design the study sampled around six hundred twenty postgraduate students studying in different states of India. Confirmatory Factor Analysis (CFA) using the convergent validity, composite reliability, communalities and AVE of all constructs was compared with the established standards for gaining confidence about the measurability of the instruments. Subsequently the association of the specified model was tested. Among the five cultural dimensions, uncertainty avoidance and individualism share significant association with the entrepreneurial intentions. The study proposes that power distance should be reduced in India that prevails in different segments of the society. Moreover Individualism and long-term orientations should be promoted too in order to inculcate the culture of innovation and higher entrepreneurial intentions among the youth of country.
Keywords - Entrepreneurship; culture; entrepreneurial intention; uncertainty avoidance; masculinity; Individualism