EFFECT OF INDIVIDUALISM, POWER DISTANCE, MASCULINITY, AND UNCERTAINTY AVOIDANCE ON ENTREPRENEURIAL ACTIVITY: A PERSPECTIVE FROM THE STATES IN NORTH-WEST NIGERIA

Abstract

Culture is a very important predictor of the activities of the entrepreneur. Studies on national culture focus have been on the differences of national culture in different countries with regards to entrepreneurship. Understanding the effect of national culture (individualism, power distance, masculinity and uncertainty avoidance) on entrepreneurship in a single country remains scarce due to a lack of research. Furthermore, the findings of previous studies revealed an inconsistency in the dimensions’ effect on entrepreneurial activity with some dimension(s) having a positive or negative relationship. Thus, this paper examined the effect of national culture on entrepreneurial activity in north-west Nigeria because of the presence of differences in culture as it relates to states in the region. A survey was conducted to gather the data. The results revealed that individualism, masculinity, and power distance had a positive effect on entrepreneurial activity. This study also found a positive relationship between uncertainty avoidance and entrepreneurial activity, which is not consistent with the a priori relationship. The findings also suggest that the differences in the states according to national culture variables are not due to chance. Thus, there is a significant difference among the states in relation to the stated dimensions. The study recommends that policymakers create awareness by educating the society of the growing need and importance of entrepreneurial activity. More importantly, policymakers should develop relevant policies that can improve the entrepreneurial spirit of states with negative culture on entrepreneurship.