Entrepreneurial activity and household economic well-being: A cross-cultural perspective

Sophia Tambudzai Chiremba, Purdue University


Entrepreneurship has a global impact on the economic growth of local and national economies. This study examines the entrepreneurial process and how it impacts household economic well-being within the different environments of five countries. Secondary survey data from Argentina, India, Russia, South Africa, and the US were obtained from the Global Entrepreneurship Monitor research consortium. Structural equation modeling was used to analyze the relationships between individual attributes, perceived entrepreneurial opportunity, entrepreneurial activity, and household income. The results support the conceptual model developed for the study, proposing that these relationships are more efficiently estimated within an environmental context. Conditions in all the five countries seem to be more influential on individual entrepreneurial activity than individual perception of entrepreneurial opportunities. Entrepreneurial activity was associated with higher incomes in Russia right from the early stages of establishment. Entrepreneurial skills and know-how were also associated with higher income in all the countries. The peak age for entrepreneurial activity was hypothesized to be between 35 and 54 years. This was only true for South Africa. Younger adults were most active in Argentina, India, and South Africa. Older adults were reluctant to participate in India, and the US. Participation in entrepreneurship did not vary significantly across generations in Argentina, and Russia. There is evidence that women are less likely to be entrepreneurial in all the five countries. General education had no significant impact on start-ups but entrepreneurial skills and know-how were very important in all the countries. Employed adults were more likely to be entrepreneurial compared to the unemployed in all of the countries except the US. Social networks with entrepreneurs encourage entrepreneurial behavior. Those with ties to entrepreneurs had higher income in all of the countries except South Africa. There was a low cultural value of entrepreneurship in Argentina, Russia, and South Africa. This study provides evidence to encourage entrepreneurial activity among households. Theoretical and empirical recommendations are made to improve the understanding of entrepreneurship and its impact on households. Specific practical and policy recommendations on key areas identified in the study were recommended to increase entrepreneurial activity across the countries.




DeVaney, Purdue University.

Subject Area

Economics|Business costs|Labor economics

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