When we think of the sociocultural aspects of entrepreneurship, we have traditionally thought of individual factors, such as the impact of parents, peers, and other role models, and also national factors, such as cultural values and preferences toward entrepreneurship.

Research from Copenhagen Business School analyzed the career choices made by 65,323 second-generation immigrants who were born and raised in the United States (U.S.) and have parents from 52 different countries of origin.

The findings were validated by examining the data on 4,165 second-generation immigrants from 31 different ancestry backgrounds who were born and raised in Europe. In order to understand the entrepreneurial culture, the researchers employed a revealed preference approach that highlights differences in entrepreneurial behavior at the country level.

Entrepreneurial culture

By analyzing the occupational choices of second-generation immigrants from different countries, the study finds that a strong entrepreneurial culture in their parent’s country of origin increases their chances of becoming self-employed.

The results demonstrate the persistence of entrepreneurial culture over at least two generations and its impact on understanding why some people become entrepreneurs and others do not.

The significance of culture as a powerful and deeply ingrained factor that impacts entrepreneurship is clearly evident. The findings suggest that second-generation immigrants who have parents from a nation with a thriving entrepreneurial culture are more likely to pursue self-employment.

By examining second-generation immigrants of various heritage living in the same country, the study is able to distinguish the impact of culture on entrepreneurship from other macro-level determinants. The relationship between culture and entrepreneurship is clear, and the entrepreneurial culture appears to endure over at least two generations and in different settings.