Chapter 3: The Entrepreneurial Process: Main Contrasts between Latin America and East Asia, Italy, and Spain
Social origin Upper class
Latin America
Italy
Spain
East Asia
3
1
0.9
1.4
Upper-middle class
17.5
11
13.9
15.8
Middle-middle class
50.9
73
56.5
35.4
Lower-middle class
19.7
11
21.3
30.9
8.8
4
7.4
16.5
Lower class Total
100
also for the greater presence of children of entrepreneurs (four in ten as opposed to fewer than three in ten in almost all other countries). The existence of a broad entrepreneurial middle class constitutes a significant “quarry” for new entrepreneurs in Italy (Boscherini 2003). In Latin American countries as well as in Italy and Spain, many of the dynamic entrepreneurs had previous entrepreneurial experience. First-time entrepreneurs are more common in East Asia, and they are more likely to be successful on their first attempt in business (Figure 3.3).
Motivation As in Latin America, the main motivation for starting a business is the pursuit of personal fulfillment. However, the presence of inspiring entrepreneurial models is a significantly more important source of motivation in Asian countries (except Japan).2 In Latin American countries, models are fundamentally within the family, that is, very close to the entrepreneurs. By contrast, in East Asia, the mass media plays an important role in making entrepreneurial models and business opportunities known. In Taiwan, for example, only one in ten entrepreneurs mentioned
100
100
100
a relative as a source of inspiration compared with six in ten who mentioned the media.3 In Latin America, cases publicized by the media tend to reinforce the public’s negative image of businesspeople. That image is not based on the life experience of the majority of entrepreneurs, whose stories are not attractive news for the media. The more widely publicized cases are associated with business behavior questioned by the population (being unethical or making questionable profits). This contrast seems to indicate that the cultural contexts are quite differentiated. In Asian countries—more than in Latin America—the figure of the businessperson seems to be directly tied to stories of effort and achievement not only individually, but also for the development of society as a whole (see Chapter 1). In Asia, the role of businesspeople, along with that of the state, seems to be associated with achievements attained in raising education levels and the incomes of the population, as well as in levels of productive and technological development. In Italy, contrary to expectation, models are not a very important factor. Instead, family influence plays a major role in the motivation to carry on the tradition of being in business. This factor is more prominent in Italy than in Latin America, Spain, and East Asia.
2 The desire to put knowledge into practice was excluded as a motivating factor because not all East Asian countries included this option in their surveys. 3 Another way the media generates a climate favorable to enterprises is by spreading information about business opportunities. This type of contribution is significantly greater in Taiwan, Singapore, and Japan than in the other countries. In Japan, television and the print media devoted significant space to the experience of entrepreneurs and businesses (Lundström and Stevenson 2001; Ko 2001).
49
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Table 3.1 Social Origin of Dynamic Enterprises by Country or Region