As an Entrepreneurship historian and scholar, I love visiting France as it is literally the birth place of entrepreneurship. Not the process per se, but the word itself. It was in France that an Irish economist named Richard Cantillon first encapsulated the phenomenon in his influential text Essai sue la nature du commerce en general, which many economists view as the starting point of modern economic theory. Even Adam Smith, whose Wealth of Nations is often credited with influencing America’s Founding Fathers as to the viability of a new concept called capitalism, was influenced by Cantillon’s essai.
As an American citizen, I wish each of my countrymen could visit France. It is an amazing country with a rich culture and storied history. Paris is perhaps the greatest city in the world, and the countryside is absolutely beautiful. Spending time in France will change anyone for the better….I know it has done that for me.
As an American entrepreneur who has spent time in France, I have been struck by the different cultural values and their influence entrepreneurship. A comparison of Hofstede’s cultural dimensions scale shows some of the difference between U.S. and French culture and the apparent effect on business creation.
Power Distance Index – Members of every society recognize that power is never share equally among the citizenry. Americans (and also fellow Europeans), according to Hofstede, are more optimistic that opportunity is accessible to them. French citizens appear to view less opportunity is available to those at lower stations in life. This is a barrier that needs to be overcome if France, as nation, is to reach its true entrepreneurial potential. There are ways to break this cultural barrier. For example, an increased emphasis in youth entrepreneurship education could begin to erode current power distance perceptions.
Individuality – France actually has a relatively high rating for individuality, which is a cultural variable conducive to entrepreneurship. The ranking is not as high as the U.S. (the highest level in the world), but it is greater than the rest of Europe. This rating shows the average French citizen values autonomy and would likely be receptive to learning about an entrepreneurial career path. Nurturing this national trait should be the starting point for a national entrepreneurship strategy.
Uncertainty Avoidance – Moderate risk taking is a hallmark of entrepreneurship. In fact, Cantillon viewed taking risks as the main differentiator between merchants and those who remained in the employ of others. French society tends to score highly in this area compared to the U.S.A and other European countries. Thus, to stimulate entrepreneurial behaviors government and banking leaders should take proactive steps to mitigate the perception of risk in the minds of aspiring entrepreneurs.
The aforementioned cultural dimension analysis shows there are some cultural barriers that need to be addressed, in my opinion, to stimulate a more entrepreneurial climate. However, with some proactive measures French entrepreneurship could flourish, and leaders could position France as a hub of international entrepreneurship.
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Ask any French person why they don’t start their own business and they will tell you that having a small business in France (an « SARL ») is a nightmare because of all the social charges and the lack of flexibility in the employee contracts. Most businesses close after 2 years here under the deluge of taxes. Its not that the French don’t want to take risks, its that they are not rewarded when they do.