Analysis of Innovation Entrepreneurship in the Arab World

The need to survive in this competitive world made Arab governments realize the importance and need for innovation and entrepreneurship for economic stability and development. They implemented various initiatives such as developments in technology and the education sector. However, there is still a dearth of an innovation driven entrepreneurship hub in the region. Previous research conducted in this realm found that culture affects or rather defines innovation initiation. However, no research has been conducted on how cultural factors affect the behavioral and cognitive skills required for innovation entrepreneurship. This paper intends to study if and what relation exists between the two. In addition this paper seeks to answer the impact of Arab culture on entrepreneurship. The research uses Clayton’s Innovator’s DNA model and Hofstede’s 5 dimensional cultural theories on a sample of people from different cultures. The results showed that culture does indeed affect the skills required for entrepreneurship. The power distance culture factor negatively affects questioning, observation and networking behavioral skills. On the other hand Uncertainty Avoidance Culture factor negatively affects Questioning Behavioral skill. In addition Uncertainty Avoidance negatively affects a person’s courage to take risks. Governments need to develop and monitor educational programs to encourage individuals on innovation entrepreneurship.