Does collectivism necessarily negate the spirit of entrepreneurship?

Abstract

Purpose – The purpose of this paper is to explore the relationships between individualism/collectivism (as personal traits) and individuals’ potential to become an entrepreneur. Design/methodology/approach – The study draws on a sample of 503 students enrolled in business courses at a university in the United Arab Emirates (UAE). It focusses on the concept of Entrepreneurial Potential (EP) as a measure of “desirability and inclination” to start a business. The paper tests the hypothesis that the concepts of individualism and collectivism are not necessarily polar ends of the same continuum and examine their impacts on EP, controlling for age and gender as main demographic characteristics. Four main hypotheses are explored. Findings – Statistical analysis confirms the two main hypotheses. They reveal that: first, concomitant with the dominant collectivist values at national level, potential future entrepreneurs evolving in the Middle East/Gulf region endorse personal traits of a predominantly collectivist nature; second, contrary to popular assumptions individualism does not have a strong impact on youth EP. In the context of this study, the impact of collectivism on EP is most significant. The paper also found that gender had no significant impact on EP Research limitations/implications – The use of personality traits alone, as a basis for understanding predictors of EP may not be sufficient. A number of contextual variables (such the socio-cultural and economic context) may also have a strong influence. Unfortunately, it is not possible to test for these effects with the data available in this study. Future research may consider these. Practical implications – Despite its limited scope (limited sample-size and target population), the findings of this study are useful to both practitioners and policy makers. Management practitioners interested in entrepreneurial behaviors need to take stock of the fact that future entrepreneurs can (and perhaps should be able to) blend their competitive entrepreneurial drive with the spirit of collectivism. This is particularly relevant in selection processes using personality tests for the purpose of extracting the most likely candidates for entrepreneurial ventures involving youth. Originality/value – The findings of this study do not support the general assumption that individualism and entrepreneurship ties necessarily go hand in hand. They clearly indicate that collectivism has more explanatory power in this regard, though this may be contextual. These findings may be explained by the context of the study (UAE/Middle East). The overwhelming majority of the respondents are from the Middle East and gulf region, where collectivist aspirations are predominant. Yet, the economies of countries in those regions are fuelled by an increasing number of advanced and quite daring entrepreneurial projects, as exemplified by the modernist business ventures in Dubai, Qatar, and Abu Dhabi.