Starting a business is not an easy task. It’s one that takes hard work, dedication, and an entrepreneurial spirit that is willing to take on challenges. Despite the many challenges faced by entrepreneurs, starting a business has become easier in certain parts of the world as policymakers begin to recognize the importance of entrepreneurship. Entrepreneurial activities are extremely crucial for the economic well-being of almost every country. As the driving force of innovation and job creation, entrepreneurship has taken on a new level of significance in the global economy. However, certain countries lag behind others in terms of entrepreneurial activities. Differences in culture and business climate are the major factors affecting the level of entrepreneurship within a country.
Certain cultures are encompassed with values that encourage individuals to start their own business. For example in the United States, the “American Dream” philosophy is conducive to entrepreneurship as everyone has the right to succeed if they work hard enough, and failure is seen as a guide for future success. In Europe and the United Kingdom, it’s quite a different story. Entrepreneurs in the United Kingdom have trouble dealing with failure as banks are wary of lending to them after their business fails. For entrepreneurial activities to occur, start-ups need to raise funds, and this remains one of the most challenging parts of setting up a business in the UK. Although failure is seen differently in the eyes of various cultures, policymakers are using various incentives to foster entrepreneurship and overcome the obstacles created by failure. In the UK, the government has created programs to provide on-going support and funding for young start-up businesses. By adopting a new approach in terms of culture and financing, the UK hopes to unlock its entrepreneurial potential and create a more successful climate for start-up businesses.
Across the world, cultures view entrepreneurship in many different ways. A strong entrepreneurial culture is the foundation of a vibrant and dynamic economy. The culture of entrepreneurship is particularly strong in rapid-growth markets such as India and China. However, innovative activity in these emerging markets is still small compared to advanced markets. For example, Brazilian culture is becoming more favorable for entrepreneurs with, over 300,000 new businesses being registered each year and 80 percent of jobs being created in Brazil are through small businesses. Despite this success in entrepreneurial activities, certain aspects of Brazil’s business climate are preventing entrepreneurship from reaching levels of that in developed countries. The legal and tax system of Brazil is still very complex and bureaucratic, creating problems for start-ups. Nevertheless, economic growth has increased the size of Brazil’s market, paving the way for an increase in entrepreneurial activities.
The important role entrepreneurship plays in stimulating economic growth is undeniable. Business climates and cultural tendencies will continue to be important factors in promoting the spirit of entrepreneurship worldwide. After all, entrepreneurship is where all great ideas begin and these ideas provide the foundation for growth in markets that are eager for an innovative transformation.