Cultural-cognitive Dimension and Entrepreneurial Activity: A Cross-country Study

Abstract

The purpose of this paper is to analyze the relationship between independence, risk taking, creativity, and entrepreneurial activity at the country level, in the light of institutional economics, concretely using the cultural-cognitive dimension. The main findings demonstrate through a regression model that risk taking and creativity have a positive and significant influence on entrepreneurship. Data were obtained from the World Values Survey, for the period 2005–2008, from a sample size of 42 countries. The study advances the literature by providing new information on the effect of environmental factors on entrepreneurial activity. Also, the research contributes to the definition of educational policies that promote favorable attitudes to risk taking and creativity, thereby increasing the number of potential entrepreneurs.