Culture and Entrepreneurship in East Asia

Culture, defined as the shared norms, values, beliefs and practices in a society, strongly matters for entrepreneurship. From a Western perspective, entrepreneurial culture is associated with individualism, high tolerance of risk, and egalitarian, non-hierarchical values. These values could traditionally not flourish in East Asia due to Confucian traditions that emphasise hierarchy, collectivism, and long-term orientation. However, Japan, Korea, and China have all undergone profound economic and cultural transformations that have fostered a more supportive entrepreneurial environment. Japan, traditionally collectivist, is gradually embracing individualism, supporting its growing startup ecosystems. Korea’s chaebol-driven industrialisation demonstrated how Confucian values could enable bold business strategies, while recent cultural shifts have fuelled the growth of startups. China, despite periods of state-imposed restrictions of private business, has recently emerged as a global entrepreneurial powerhouse. East Asian entrepreneurship differs from Silicon Valley’s model but has demonstrated remarkable success, leveraging strong leadership and long-term thinking. This nuanced perspective highlights how distinct cultural conditions can drive entrepreneurial excellence in unique ways.