Culture matters

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Entrepreneurship is often cited as the single most important factor in economic development. Although this contention is limited mostly to the realm of private business activities, entrepreneurship is also present in governmental organizations. Public entrepreneurs, like their private counterparts, are agents of change. This study hypothesizes that although public entrepreneurship requires availability of capital and presence of educated public and administrators, to be effective it demands also cultural values of 'individualism', 'need for achievement', and 'need for certainty'. Or, in other words, that culture and history matter. The hypothesis is tested in four historically and culturally distinctive regions in Poland. The research shows that despite forty-five years of communist rule stressing the uniformity of the "new socialist society", differences in the realm of cultural and political values remained. These, in turn, influenced other areas of public life. Almost immediately after the decentralization of local governments in 1991, some local governments showed more entrepreneurial spirit than others. At least part of these differences can be accounted by better socioeconomic situation of a region, but culture seems to be playing even a larger role in this entrepreneurial race.