The effect of culture, resources and quality of entrepreneurship on economic development: a conceptual framework

Abstract

Entrepreneurship is a global phenomenon occurring in both developed and developing countries. Local economic and cultural factors both affect new ventures. This paper presents a framework that presents visionary (high quality) entrepreneurship as a principal driver in developing economies. The framework incorporates the dimensions of culture and resource-availability and speculates on their relationship with the quality of entrepreneurship. The notion of disequilibrium is presented where the role of culture and resource-availability is described as entrepreneurship impeding in developing economies, but entrepreneurship enhancing in developed economies. The framework also provides an integrated approach to guide future research about cross-cultural and geographic differences in the rates and qualities of new venture creation.