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Joern H. Block and Sascha G. Walter

The authors explore the effect of national culture on the mode of entry into entrepreneurship: namely starting versus taking over a business. Adopting an aggregate trait approach, they hypothesize that individualism and masculinity favour starting a business, whereas uncertainty avoidance and power distance (acceptance of hierarchy) favour taking over a business. Unexpectedly, their results suggest that people in countries with a relatively high power distance are less willing to opt for business takeovers rather than starting new ventures. An explanation for this could be sought in the reaction to an ‘un-entrepreneurial’ culture.