MIT Sloan School of Management

Knowledge Stream

1000 and 1 Entrepreneur Cultures

Prof. Neal HartmanE62-342

Agenda

• Trends in Entrepreneurship• Profile of Entrepreneurs• Key Competencies for Intercultural Communication• Dimensions of Culture

– Definition– Experiences– Values and perceptions– Low context or high context

• Intercultural Communication: A Strategic Approach

Trends in Entrepreneurship

• Total early-stage activity increased in many economies

• Rose 25% among 16 developing economies• China, Argentina, and Chile above-average

rates

* The Global Entrepreneurship Monitor (GEM) 2011 Global Report

Trends in Entrepreneurship

• Twenty mature economies experienced a nearly 22% Total early-stage activity increase

• United States and Australia showed substantial increases

Trends in Entrepreneurship

• Intent to start a business is highest in emerging economies

• People are most likely to see opportunities and believe in their ability to start a business

• They hold entrepreneurship in high regard

Trends in Entrepreneurship

• Expectations to start a business are also high in some middle-stage developing economies: China, Chile, and Brazil

• These measures tend to fall as countries rise in economic development – Russia and the United Arab Emirates have the lowest entrepreneurial intention rates across the sample

Profile of Entrepreneurs

• 163 million early-stage entrepreneurs are women

• 165 million early-stage entrepreneurs are young entrepreneurs (age 18 to 25)

• 69 million early-stage entrepreneurs are offering innovative products and services

• 18 million early-stage entrepreneurs are selling 25% internationally

Intercultural Communication - Key competencies

Analytical

Understanding beliefs, values and practices of other cultures

Emotional

Intercultural empathy; respect

Creative

Ability to see the synergistic potential of diverse perspectives

Behavioral

Ability to discern different cultural messages (verbal and nonverbal)

Values and perspectives shared by people who are conditioned by similar education and life experience.

What is culture? One definition

Key characteristics of culture

• Culture is not inherent, but learned.• Culture is rooted in deep-seated beliefs.• Culture is the basis for self-identity and

community.• Culture is dynamic.

Culture

RegionCountry

AreaCommunity

GroupSchoolClub

BusinessIndustry

CompanyDepartment

Culture can encompass a variety of experiences

Values

Individualism and collectivism

High context and low context

Criteria for/definitions of success

Nature of change

Importance of hierarchies

Perceptions

Perceptions of

– Space

– Time

– Gender roles

Nature of

– Authority

– Humor

Culture can differ on values and perceptions

Low Context Cultures Tend To… High Context Cultures Tend To…

Prefer direct verbal interaction Prefer indirect verbal interaction

Understand meaning at one level Understand meanings at many levels

Be less proficient in reading non-verbal cues

Be more proficient in reading non-verbal cues

Value individualism Value group membership

Say “no” directly Talk around point; avoid saying “no”

Communicate in highly structured messages

Rely more on context and feelings

Culture may be classified as low or high context

• Emphasis on task or relationship-building

• Role of written communication and meetings

• Patterns of reasoning and argumentation

• Level of formality in interpersonal communication

• Style of oral presentations

Cultures Differ on Communication Practices

Intercultural communication – A strategic approach

Eye contact

Facial expressions

Gestures

Display of emotions

Space and spatial zones

Communication Behaviors

Observe Nonverbal Behaviors

Intercultural communication – A strategic approach

Low

Low

Follow Culturally Responsive Strategies

You

High

Counterpart

Allow/Induce counterpart to follow own cultural script

Improvise creatively

Knowledgeof Other Culture

Knowledgeof Other Culture

Use mediatorEmbrace counterpart’scultural script

High

Intercultural communication – A strategic approach

• Avoid ethnocentrism

• Look beyond stereotypes

• Seek common ground

• Observe non-verbal cues

• Study your own and other cultures

Approach Communication

Openly

Intercultural communication – A strategic approach