The Role of Socio-Cultural Characteristics in Shaping Entrepreneurial Behaviour: Evidence from Small and Medium Enterprises in Gujarat

Entrepreneurship plays a vital role in economic development, job creation, and the progression of society. The study attempts to identify the factors influencing the startup decision of an entrepreneur. It examines the role of socio-cultural characteristics on entrepreneurial orientation. The level of education, experience before startup, and family background of the entrepreneurs are attributed to socio-cultural attributes. In addition, innovativeness, creativeness, and risk-taking tendencies are attributes of the entrepreneurial orientation. The study uses a sample of 100 entrepreneurs surveyed from the state of Gujarat, India. The primary data was collected through questionnaires. Confirmatory factor analysis and parametric tests were used to get the empirical results. Results show that the background of the entrepreneur and educational attainment positively affect the entrepreneurial orientation. The educational attainment and experience of an entrepreneur show significant association with innovativeness. In contrast, the business background of an entrepreneur is positively related to proactiveness. Additionally, educational attainment is positively associated with risk-taking propensity. Experience and education are essential factors for innovativeness. Social background is a necessary factor for proactiveness in business activities. Profile analysis of entrepreneurs and their attitude towards innovation, pro-action, and risk-taking propensity based on their socio-cultural characteristics can help investors make better decisions. An entrepreneur can also understand the importance of socio-cultural factors before starting the venture. This study is an attempt to examine the role of socio-cultural characteristics on entrepreneurial orientation. It examines the entrepreneurs of small and medium-scale enterprises. Investors and financiers can increase their chances of success by selecting the innovative, proactive, and risk-taking entrepreneurial orientation dimensions.