Developing an
Entrepreneurial
Culture
A
simple way to think about culture is
that it captures the personality of the
company and what it stands for.
 Entrepreneurship
is not only affected
by the culture in a company, it is also
a core element of the culture.
Question 1: What is an organizational
culture?
Culture can be defined as “an organization’s basic
beliefs and assumptions about what the company
is about, how its members should behave, and how
it defines itself in relation to its external
environment”
A
culture reflects the unique history of a group of
people interacting over time, but it also is
subject to continuous change as people come
and go, and is based on developments in the
external environment.
 Finally, cultures
are fuzzy. They include
elements that may seem contradictory or
paradoxical.
 Cultures
tend to differ along some key
dimensions:
•
•
•
•
Positive vs. negative
Strong or weak
Homogeneous or heterogeneous
Consistent or inconsistent
Question 2: What are the six (6)
elements of culture? Briefly describe
each.

Values—things employees think are worth having
or doing; intrinsically desirable

Rules of conduct—accepted norms and rules of
the company

Vocabulary—the language, acronyms, jargon,
slang, signs, slogans, songs, etc.

Methodology—perception of how things actually
get done in the company

Rituals—rites, ceremonies, and taboos (e.g.,
recognition ceremonies, retreats, etc.)

Myths and stories—the history, sagas, myths,
and legends of the organization
Cultures consist of substance and forms.
 Substance
refers to shared systems of
values, beliefs, and norms.
 Forms
are the concrete ways in which
the substance is manifested in the
organization.
 “Organizational
cultures can enhance
and inspire us. They can remove us from
the boxes and traps in which we exist,
making our lives richer and giving
meaning to our daily tasks. [This] is the
goal of cultural management.”
Core ideology includes core values, or what
the company stands for, as well as core
purpose, or the reason the company exists.
 Google
created a Chief Culture Officer
(COO) to ensure a culture of ideas and
creativity.
 At Disney, creativity, dreams, and
imagination form some of the core values.
Question 4: What are eight (8) elements of
an entrepreneurial culture? How might
each contribute to firm entrepreneurship?
 People
and empowerment focused
 Value creation through innovation and
change
 Attention to the basics
 Hands-on management
 Doing the right thing
 Freedom to grow and to fail
 Commitment and personal responsibility
 Emphasis on the future and a sense of
urgency
Question 5: What are the differences
between individualism and
collectivism?
 Individualism
– a self-orientation, an
emphasis on self-sufficiency and control,
the pursuit of individual goals that may or
may not be consistent with those of the
employee’s colleagues.
 Collectivism–
the subordination of
personal interests to the goals of the
larger work group.
Positive
Aspects
Negative
Aspects
Question 6: How do firms balance
individualism and collectivism to
promote entrepreneurship?
The ability to achieve sustained
entrepreneurship in a company is
dependent upon a balance between the
need for individual initiative and the
spirit of cooperation and group
ownership of innovation.
Entrepreneurial
Intensity
High
Low
Strong individual
orientation
Strong group or
collective org.
Ideal balance
Managers struggle with the concept of failure
 There
is a tendency within companies to
develop “zero error cultures” as companies
strive to meet ever-higher performance
standards in a hypercompetitive marketplace
 This
results in innovation incompetence,
where bold initiatives are avoided and
initiatives are pursued only when there is an
apparent guarantee of outcomes
The culture in the entrepreneurial firm
celebrates failure.
 Fear
of failure is a certain recipe for
mediocrity.
 Failure
is perceived – employees attach
certain costs to it
• Is it job loss, a smaller pay raise, a missed
promotion, a blemished record, loss of autonomy,
personal embarrassment, loss of stature, or
something else?
Question 7: How does leadership
interact with culture to encourage
entrepreneurship?
 An
entrepreneurial leader and an
entrepreneurial culture are not
completely synonymous
• If leader leaves without ENT culture in place, so
does the ENT culture
 ENT
leaders help to encourage and
facilitate an ENT culture
 Remember, this
is a slow process