What Is Entrepreneurial Culture & Administrative Culture?


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Entrepreneurial Culture

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Entrepreneurial Culture & Bureaucratic/administrative Culture:

 

        The customs, ideas & attitudes which are shared by a group makes up its culture & this is passed on from generation to generation by a learning process. The culture consists of material & non-material culture. Material culture consists of man made things like T.V, phone etc while non-material culture includes language, ideas, beliefs, music etc.

 

        Culture when viewed from the point of view of business can be further divided into;

  1. Entrepreneurial culture.
  2. Bureaucratic culture.

 

     Entrepreneurial culture includes the vision, values, norms, traits that are conducive for the development fo the economy. It is governed by the idea of opportunity, social values, ambition & helps the entrepreneur to do something valuable.

 

     On the other hand, bureaucratic culture of administrative culture is corporate or organizational culture which focuses on existing opportunity, HRIS, controlling procedure in the company etc.

 

      According to Stevenson, organizations must have both entrepreneurial & administrative culture. An able entrepreneur must be able to combine both the cultures for achieving excellence & success. A comparison between both can be done as follows:

 

Points of Distinction Entrepreneurial Culture Administrative Culture
Strategic orientation

 

 

Commitment to seize opportunity

 

Management structure

 

 

View point

Driven by perception of opportunity

 

Revolutionary with short term duration

 

Multiple information network & flat structure

 

Looks at things from macro view point

Driven by controlled resources

 

Evolutionary with long term duration

 

Hierarchy system & formal network

 

Looks from micro view point

 

Entrepreneurial culture faces pressures like;

  1. Rapidly changing technology.
  2. Social values.
  3. Lack of predictable resource needs.
  4. Risk of obsolescence.
  5. Employee desire for independence.
  6. Foreign competition.

 

Administrative or bureaucratic culture faces pressures like;

  1. Coordinating with existing resources.
  2. Formal planning system.
  3. Clearly defining authority & responsibility.
  4. Control system.
  5. Day to day administration problems.

 

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