Cultural characteristics of small business entrepreneurs in India: examining the adequacy of Hofstede's framework

Abstract

The functioning of small business or the micro, small and medium enterprises (MSMEs) in India has been closely associated with factors unique to the respective regions of the country. Entrepreneurial capability is often associated, among other factors, with the region's cultural environment. Although many theories have come up on the relationship between human behaviours and culture the one promulgated by Geert Hofstede merits maximum attention; it proposes that people differ to the extent to which they endorse six dimensions of cultural values. Since Hofstede used a neutral, global and scientific (Etic) approach in his study, it became necessary to consider an insider's (Emic) perspective in the Indian context. A qualitative survey of experts was undertaken to validate the relevance and adequacy of Hofstede's framework for India which while reviewing the applicability of Hofstede's cultural framework for India came up with yet another cultural dimension as well.