Most nations acclaim their differences in economic development to their wealth in assets and security ownership, for instance, stocks. However, the focus of discussion should be on entrepreneurship. Even though not given much thought, entrepreneurial development could significantly contribute to a nation's economic advancement. Thus, a nation's institutions could spearhead its economic development through their impeccable market responsiveness and entrepreneurial success. However, such an advancement might be affected by several factors such as institutional, cultural, and psychological contexts of an institution. Generally, they have been known to affect entrepreneurs' processes and proclivities. Empirical testing has been performed to develop hypothetical theories about how certain institutional conditions affect the capacity of an individual to make certain independent choices. In addition, a hypothetical idea has been formed on the institutional conditions as being more convenient for group-oriented entrepreneurs. Lastly, it is argued that entrepreneurs' behavior is easily affected by the social environment. Researchers try to prove that entrepreneurial practices have blanket effects on the market structures, nature, and direction of economic activities. Some essential ideas are featured in this chapter include the following ones.
Personal Agency in Entrepreneurship
The hypothesis established is that economic policies constrain economic freedom to allay people's alertness to profit opportunities . There is no widely accepted scope for determining the strength of a person's disposition to be alert. If researchers are to find ways of measuring a person's degree of alertness to entrepreneurial opportunities, much more work is to be done. The inherent nature of entrepreneurial alertness dampens its ability to be empirically studied, and for this reason, the subject can be tested by discussions only. Two tests could be carried out to determine the propensity of entrepreneurs in highly regulated industries and those in less regulated industries. The first test would involve measuring the mean personal scores of both entrepreneurs and finding their important differences. The second criterion entails comparing mean LOC regarding self-efficacy and self-agency for entrepreneurs in the same industry before and after economic deregulation. An ANCOVA test to determine the entrepreneur's personal agency strength would be performed. One problem would arise since it will not be known how long it would take for the deregulatory measure to take effect on entrepreneurs due to the time that elapses as the bills pass through political debates and come into force on the economy.
Institutional Rules are More Applicable and Convenient for a Group-oriented Entrepreneurial Society
The argument given by Harper is that group orientation by no means rejects the fact that there is negative freedom, the rule of law, private property rights, and freedom of entrepreneurial rights. Most factors, such as property and contracts, are greatly associated with group membership. Thus, it follows that the term person has to be clearly defined beforehand. The unit of focus in team-oriented communities is the individual, so the relevant institutional rules must unleash the vigilance of a different type of body. Liberalism cannot be identified with a particular culture. Thus, the institutions of civil society are focused on non-coercive group norms. The perception of freedom under the law is instinctively social, and it can be defined only concerning interpersonal relationships. Private property is seen that it can be owned by an association of people and just by an individual. Legal rights grant persons in any culture the ability to own property.
It is agreeable that the feedback effects are likely to happen when personal understanding and entrepreneurial actions mesh to affect the cultural norms and institutions of society . Culture, traditions, and people's intellect can affect each other at different speeds.
Three Important Ideas Expressed in the Study
Personal Agency is Vital for Entrepreneurial Freedom
Personal agency generally refers to a person's ability to make independent decisions. To measure the mean personal agency scores of entrepreneurs, it would be paramount to control the aspect of culture. An individualist cultural setting would be preferable because measuring the firm beliefs of an individual's personal self is less complicated . First, to measure personal agency beliefs, it would be necessary to develop a sophisticated measuring scale, and the best choices would be Rotter's scale and Levensons three factor LOC scale. Measures of self-efficacy must also be determined as entrepreneurship poses unique problems because it encompasses interrelated tasks. Thus, it would be wise to develop an entrepreneurial self-efficacy construct that is in line with Chen. Once the scores of both tests have been obtained, the total measure of personal agency is found from the two measures initially determined. In the second test that determ