Entrepreneurship and Culture: What Determines the Differences Within Switzerland?

Abstract

This article aims to investigate the differences in entrepreneurship activity and entrepreneurship-related perceptions and intentions within Switzerland and to shed light on the explanations of those differences through a cultural context. Two possible divisions within the country that complement each other are used: the administrative division into seven NUTS2 regions and the division into language regions (German, French and Italian). The Global Entrepreneurship Monitor is used for entrepreneurship-related data and the European Social Survey for measuring societal values. The findings of this article show that higher perceptions about the possibilities to be successful in entrepreneurship or higher entrepreneurial intentions do not automatically lead to entrepreneurship. The analysis of societal values both across language regions and across NUTS2 regions in Switzerland shows that it is the pattern that matters, not the single values, and sometimes the combination of societal values and educational background determines entrepreneurship activity. Comparing the patterns and correlations across three language regions and across seven NUTS2 administrative regions in Switzerland shows that pronounced differences can be found across language regions. In a country with a high economic and human development level like Switzerland, most of the entrepreneurship is opportunity-driven and not necessity-driven.