Can Culture Account for Investment Expectations?

Abstract

International audienceUntil recently, risk-taking in investment decisions has been explained bycognitive biases and emotional urges. I would like to propose an alternativeexplanation, based on the work of Pierre Bourdieu, who links cultural capital torisk-taking. His concept of cultural capital has a very broad meaning, as itencompasses technical skills, aesthetic preferences, verbal facility, general culturalawareness, educational credentials, and artistic competencies. On theoreticalgrounds, one can assume that a high level of cultural capital enables the taming ofuncertainty and allows for temporal horizons that cover longer terms. I test thishypothesis by conducting and analyzing a survey of 307 entrepreneurs. I define risktakingin two ways: (i) in a somewhat mainstream way, on the basis of expectedutility, and (ii) in a heterodox way, in a qualitative, context-dependent setting. Ifind that, in both cases, there seems to be a link between cultural capital and risktaking.Furthermore, it seems to make financing issues more salient. I conclude byopening a discussion about the heterogeneity of entrepreneurs and their animalspirits

Regional embeddedness is the key: Quantity and quality of regional business opportunity perception

“…The regional entrepreneurship culture is observed to change only very slowly, which explains the pathdependency of regional entrepreneurial behaviour (Feldman, 2014;Fritsch & Kublina, 2019;Fritsch & Wyrwich, 2018;North, 1994;Nunn, 2012;Williamson, 2000). Furthermore, this empirical evidence hints at a self-perpetuation of the regional entrepreneurship culture via intergenerational transmission of entrepreneurial values, which tame the uncertainty of entrepreneurial activities Laine, 2016).…”

“…The observation of role models in the social network and their attitude towards entrepreneurship can be understood as norms that establish themselves through social interactions and are largely subconscious (Andersson & Koster, 2011;Arenius & Minniti, 2005;Cantner et al, 2017;Laine, 2016;Minniti, 2005). Indeed, the presence of role models, defined as accessible, successful individuals who increase the acceptability of entrepreneurial activities, is often associated with the efficiency of entrepreneurial ecosystems (Andersson & Koster, 2011;Bosma et al, 2012;Lafuente et al, 2007;Zozimo et al, 2017).…”

“…These informal institutions can be interpreted as regional entrepreneurship culture, characterised by shared perceptions, expectations, and beliefs of the regional population (Almeida & Teixeira, 2017;Hayton & Cacciotti, 2013;Laine, 2016;Ogunsade & Obembe, 2016;Spigel, 2017). By providing a general orientation of the prioritisation of values within a region, the entrepreneurship culture affects not only the number of new ventures but also their types and impact on economic development (Aparicio et al, 2016;Baumol, 1990;Bowen & De Clercq, 2008;Eunni & Manolova, 2012;Ferreira et al, 2017;Laine, 2016;Mueller & Thomas, 2000;Ogunsade & Obembe, 2016;Spigel, 2017;Urbano & Alvarez, 2014). In this vein, Spigel (2017) points out two possible cultural transmission mechanisms-cultural attitudes and histories of entrepreneurship.…”

Differences in Investment Concepts between Chinese and Western Investors from the Cultural Perspective

“…Individuals have the right to choose freely and have the right to compete with others." [6] The relationship between individuals reflected in individualism is symmetrical and horizontal. Western individualism advocates that all values should be based on human-centered, individuals have the highest value, individuals are the highest goals of life, and social interests are the synthesis of personal interests.…”