Socio Cultural Impediments to Entrepreneurship: Implications for the Lao People's Democratic Republic

Though cultural explanations as determinants of economic outcomes have mainly been ignored by researchers, national culture has been proven to have a direct and identifiable impact on the level of entrepreneurial behavior. Politically, Laos remains one the few communist countries in the world, but it too is transitioning to a market economy. In spite of being rich in natural resources, this small, landlocked nation remains a less developed country (LDC) and the poorest member of the Association of South East Asian Nations (ASEAN). The Lao culture embraces collectivism and the traditional values of Theravada Buddhism, a belief system which inherently functions against the fostering of entrepreneurial spirit. Removing impediments to entrepreneurship is a key challenge for the government. Using Laos as a case in point, this paper assesses the influence culture has on entrepreneurship and explores initiatives and measures that can be used to strengthen inherent cultural values that stimulate the entrepreneurial spirit, encourage risk-taking, and in turn promote economic development. Research paper Keywords: Entrepreneurship; Culture; Laos; ASEAN; Economic Development Reference to this paper should be made as follows: Bhasin, B., & Ng, L. K. (2019). Socio Cultural Impediments to Entrepreneurship: Implications for the Lao People's Democratic Republic, Journal of Entrepreneurship, Business and Economics, 7(1), 64–9