Question

Entrepreneurship

Studies by Hofstede (1984, 1991) have outlined five (5) dimensions that can differentiate the cultures of various races and nationalities. Elaborate on how the cultural dimensions of “masculinity” and “individualism” could affect entrepreneurial trends in Malaysia compared to Indonesia. ( Word limit: 750 words)

Answer 1

The entrepreneurship is affected by many factors. Entrepreneurship is about taking risk and introducing new ventures. Thus, those people who have risk taking abilities and who can face uncertainly well than others are better entrepreneurs. Risk tolerance towards uncertainty is affected by culture. A culture that promotes risk taking ability, and experimentation certainly promotes entrepreneurship. A culture that maintains status quo and does not inculcate such values such as courage cannot facilitate entrepreneurship.

If we compare other crucial factors driving entrepreneurship, these are pride, competition, and achievements. These kinds of values are generally found in a masculine society. A masculine society promotes values such as accomplishment, competitions, success, etc. Thus, people who need success and achievements take initiatives to build new ventures.

If we compare the culture of Indonesia with Malaysia, it is found that the masculinity score is low in Indonesia than Malaysia. But there is not much difference between these countries. It reveals that Malaysian people are relatively better entrepreneurs than Indonesian people. They are driven by achievements and success values and therefore, chances are that Malaysian entrepreneurs will introduce more entrepreneurial ventures.

Individualism score in Indonesia is low than Malaysia. Low score reveals that the people sacrifice their own wishes for family and society. They do not take initiatives to build anything by their own happiness and achievements. Self achievements and individualism identity do not exist in collective society where families and societies goals are more important. In this perspective, it can be easily said that entrepreneurial trends in Indonesia are low. Entrepreneurial trends can be fostered when individual have desire for success and recognition. But lack of self identity may not cause much motivation among youth of Indonesia to take initiatives. In this regard it is worthwhile to notice that uncertainty avoidance in Indonesia is very high than Malaysia. Thus, the culture of Indonesia also does not permit their people to take risks.

On the other hand, the individualism score is little bit more in Malaysia than Indonesia. Thus, entrepreneurial trends can be found in Malaysia more than Indonesia. It is well supported by this fact that uncertainty avoidance is low in Malaysia than Indonesia. It suggests that Malaysian people bear risks to a certain extent. They can experiment new things and can promote innovation.

Analysis of the two countries reveals that Malaysia is better placed than Indonesia to promote entrepreneurial trends. Thus the conclusion obtained is Malaysia has better entrepreneurial trends than Indonesia.