Although extant research has shown the importance of
the institutional context or environmental factors for promoting
entrepreneurship, there is little evidence of how
the cultural-cognitive dimension influences entrepreneurial
activity. In this paper, based on the definition of
Scott (1995 and 2001), we measured the cultural-cognitive
dimension as independence, risk taking, and creativity.
Thus, the purpose of this research was to analyze the influence
of the cultural-cognitive dimension on entrepreneurial
activity, when controlling for the education level
and level of development. From data of the World Values
Survey, we used a new measure of entrepreneurship and
also of independence, risk taking, and creativity at the
country level.
With the use of regression models, this study shows
that favorable attitudes toward risk taking and creativity
are linked to entrepreneurship at the country level.
Risk taking and creativity are important for the birth of
new ideas, processes, products, and services, thereby increasing
entrepreneurial activity.
This research contributes to a greater understanding of
the influence of the cultural-cognitive dimension on entrepreneurship.
Also, this study helps advances in the
application of the institutional economics theory (North
1990 and 2005) in the analysis of conditioning factors for
entrepreneurial activity, specifically using the culturalcognitive
dimension (Scott 1995, 2001). In the current
context of economic crisis, characterized by high unemployment
rates, it is especially important to conduct research
on the determinants of entrepreneurial activity.
The results of this paper contribute to the definition of
educational policies that increase the number of potential
entrepreneurs through the training of individuals
with favorable attitudes to risk taking and creativity.
One important direction for future research is to use a bigger
sample from the WVS by augmenring the period of
time being analyzed. However, this sample would also be
conditioned by the availability of the variables used in this
study; independence, risk taking, and creativity.