Religion as an explanatory variable for entrepreneurship
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Religion as an explanatory variable for entrepreneurship Leo Paul Dana Abstract: Religions are depositories of values. Reviewing literature from the past century, this article argues that there is considerable empirical support for the thesis that religion and related beliefs influence values and thus shape entrepreneurship. This article shows that: (1) various religions value entrepreneurship to different degrees; (2) different religions yield dissimilar patterns of entrepreneurship; (3) specialization along religious lines shapes entrepreneurship; (4) credit networks, employment networks, information networks and supply networks of co-religionists affect entre- preneurship; (5) religions provide opportunities for entrepreneurship; (6) religious beliefs may also hamper entrepreneurial spirit; and (7) religions have built-in mechanisms for the perpetuation of values. Regardless of whether a person is religious, he or she is influenced by the values propa- gated by religion. Keywords: belief systems; asceticism; frugality; religion; thrift; values Professor Leo Paul Dana is with the Department of Management, University of Canterbury, Private Bag 4800, Christchurch, New Zealand. E-mail: leo.dana@canterbury.ac.nz. He is currently on study leave at the GSCM-Montpellier Business School, France. People with different cultural beliefs and religious of non-economic factors, such as the legitimacy of values have looked at entrepreneurship with varying entrepreneurship, for entrepreneurial activity. Specht degrees of legitimacy. The Greek philosopher Aristotle (1993) emphasized the importance of cultural accept- (384–322 BC), a student of Plato and teacher of Alexan- ance. Cultural acceptance of entrepreneurship varies der the Great, viewed entrepreneurship as unnatural and among people with different cultural values. Likewise, therefore illegitimate (Aristotle, 1924). Becker (1956) people from different religious backgrounds have explained that some cultures consider business an dissimilar propensities to become entrepreneurs. unholy occupation. Woodrum (1985) found participation Farmer and Richman (1965, p 157) wrote, in religious activities to be a predictor of entrepreneurial success among Americans of Japanese origin. Dana ‘There is a close correlation of countries in terms of (1995a) and Lumpkin and Dess (1996) maintained that a how deeply the Calvinist spirit has penetrated their small firm’s orientation was grounded in the values of its economic and social behavior with real per capita entrepreneur. income and level of economic development. Thus, in Values and culture shape the environment for entre- 1958, all fifteen countries of the world with per preneurship as well as the entrepreneurial event. Aldrich capita incomes of over $700 per year were those (1979) noted that the environment could provide or which had followed the Calvinist ethic extensively; withhold resources. From an anthropological perspec- and, with the possible exceptions of France and tive, Stewart (1991) suggested that the legitimization of Belgium, all were quite extensively Protestant in enterprise was a function of culture. From a sociological religion. No country where the Calvinist ethic had perspective, Reynolds (1991) confirmed the importance deeply penetrated was not included in this list of ENTREPRENEURSHIP AND INNOVATION Vol 10, No 2, 2009, pp 87–99 87
Religion and entrepreneurship most wealthy countries, while none of the extensively prohibit entrepreneurship. Rather, religions teach, non-Calvinist nations had yet achieved such eco- promote and propagate cultural value systems within a nomic success.’ given society. Value orientations in turn affect propen- sity towards entrepreneurial activity. For instance, More recently, Enz, Dollinger and Daily (1990) identi- Methodism accepts disparity between the rich and poor. fied different value orientations among various The wealthy may be charitable, and it can be argued that communities, and concluded that value orientation acquisition of wealth is good in that it allows one to be might be an important component in entrepreneurs. philanthropic. Asa Chandler, the pharmacist who Some cultures simply value entrepreneurial activity incorporated the Coca-Cola Company, was a devout more than do others, and empirical evidence suggests Methodist and Sunday school teacher who believed that that some religions are less conducive to entrepreneur- making money was a form of worship. During the ship than others. following century, Prime Minister Margaret Thatcher The Government of Canada found that 18 per 1,000 (raised with strict Methodist values)1 stated, ‘I believe in Filipino workers in Canada were self-employed; it also “Judaeo–Christian” values: indeed my whole political reported that 124 per 1,000 Greek workers in Canada philosophy is based on them’ (Thatcher, 1993, p 509). were self-employed (Dana, 1991). How can such She emphasized that her political party originated as a differences be explained? Could it be that the Greek Christian party, concerned with the church and the state Orthodox religion inculcated certain values among in that order, and she stated that religion was the source members of one group? Indeed, the world view of Greek of a nation’s values. Orthodoxy fosters a work ethic and leadership style that Candland (2000) viewed faith as social capital and may facilitate successful entrepreneurship. Brammer, Williams and Zinkin (2007) found that Galbraith, Latam and Galbraith (1997) examined religious individuals tended to hold broader conceptions differences and similarities in attitudes and cultural concerning the social responsibility of businesses than norms between two groups in the USA: Catholic non-religious individuals. Anderson, Drakopoulou Dodd Hispanic entrepreneurs and non-Hispanic entrepreneurs; and Scott (2000) suggested that a reduction in church this study hypothesized that the first group consisted of attendances could not be seen to be a direct consequence hybrid personae, combining aspects of the traditional of a reduction in religiosity. Regardless of whether a notion of the entrepreneur while retaining important person is religious, it can be argued that individuals are cultural characteristics of the Hispanic community. The influenced by cultural values propagated by religions. authors found that successful Hispanic entrepreneurs As suggested by Anderson, Drakopoulou Dodd and were also leaders in their Hispanic community; business Scott (2000), it seems reasonable to assume that religion leaders were often leaders in the religious realm. has an impact upon the legitimization of enterprise, Studies that investigate entrepreneurship as if it were despite secularization. an isolated phenomenon – derived from the self and In this article, the author combines three decades of based on the psychological traits of the entrepreneur – personal studies and a review of the literature to discuss risk ignoring important causal variables arising from the ways in which religion shapes entrepreneurship. Blend- environment, including the religious milieu. As sug- ing a sociological understanding of values with an gested by Drakopoulou Dodd and Anderson (2007), the anthropological interpretation of culture, it will be dynamics of embeddedness and social conditioning suggested that religion is a vehicle to perpetuate both should be attributed equal weight to the entrepreneur’s values and culture, thus shaping various forms of individual agency. Religions are depositories of wisdom entrepreneurship. It will be shown that: (1) various and of values; furthermore, religious beliefs are inter- religions value entrepreneurship to different degrees; (2) twined with cultural values. Are prevailing religious different religions yield dissimilar patterns of entrepre- beliefs explanatory variables for a propensity for, or neurship, possibly due to value differences (such as indifference about, entrepreneurship? Empirical findings asceticism, frugality and thrift) but also due to speciali- suggest a causal relationship. zation (sometimes resulting in a monopoly) and Drakopoulou Dodd and Gotsis (2007) provided a networks; (3) specialization along religious lines shapes literature review addressing implications of religious entrepreneurship; (4) credit networks, employment convictions in business settings. Religious beliefs – and networks, information networks and supply networks of cultural values deriving therefrom – influence the social co-religionists affect entrepreneurship; (5) religions desirability of entrepreneurship and its nature as well. provide opportunities for entrepreneurship; (6) religious Drakopoulou Dodd and Gotsis (2007) categorized beliefs may hamper entrepreneurial spirit; and (7) individual outcomes of religious belief. religions have built-in mechanisms for the perpetuation A religion does not necessarily directly promote or of values. 88 ENTREPRENEURSHIP AND INNOVATION Vol 10, No 2
Religion and entrepreneurship Values and culture order and direction to the ever-flowing stream of human acts and thoughts as these relate to the solution of Feuerbach (1855) argued that religion included values “common human” problems’ (Kluckhohn and produced by people in the course of their cultural Strodtbeck, 1961, p 4). They suggested that cultures development. Durkheim (1912) and Thomas and could be classified according to five value orientations: Znaniecki (1918) were among the pioneers who studied time; humanity and the natural environment; relating to the concept of values. David Emile Durkheim, son of other people; motive for behaving; and the nature of Rabbi Moise and Melanie Durkheim of Epinal, is well human nature. During the same decade, Farmer and known for his work The Elementary Forms of Religious Richman (1965, p 157) suggested that religious beliefs Life (Durkheim, 1912). In this, he identified a pattern of ‘usually have a direct and very significant bearing on the organization consistent within all human societies; for dominant view toward work and achievement’. this pattern, he used the term Structural Functionalism. Shortly thereafter, Rokeach (1968, p 124) defined a In essence, his theory described society as being built value as ‘a type of belief, centrally located within one’s upon order that incorporates interrelationship and total belief system, about how one ought or ought not to balance among various parts of its constitution; he behave, or about some end-state of existence worth or argued that the construction and identity of any given not worth attaining’. Rokeach (1968) considered two society was based on shared norms and values as the sets of values: terminal values and instrumental values. basis of existence. Terminal values are cultural goals to be attained and One of two major macro-sociological perspectives, developed, while instrumental values are the means of functionalism conceives society as a system of interre- achieving the desired goals. Rokeach (1973, p 5) lated parts in which no part can be understood in provided a new rendition of values and value systems: isolation from the whole. A change in any part is seen as leading to a degree of imbalance that changes other parts ‘A value is an enduring belief that a specific mode of of the system and at times the system as a whole. conduct or end-state of existence is personally or Functionalism places a great emphasis on values in socially preferable to an opposite or converse mode terms of the functions they perform in a socio-cultural of conduct or end-state of existence. A value system system. As such, it contrasts directly with the other is an enduring organization of beliefs concerning major macro-sociological perspective, conflict theory. preferable modes of conduct or end-states of exist- Sociology as well as anthropology provided early ence along a continuum of relative importance.’ definitions. From a sociological perspective, Thomas and Znaniecki (1918, p 21) interpreted a value as having Hiebert (1976, p 25) defined culture as ‘the integrated an acquired social meaning and, consequently, ‘is or system of learned behaviour patterns, ideas and products may be an object of activity’. Clyde Kluckhohn pro- characteristic of a society’. Hofstede (2001, p 5) defined vided an anthropological definition of culture as the a value as: ‘a broad tendency to prefer certain states of total life way of a society; he emphasized that affairs over others’. Relying heavily on culture and each culture was formed by values that the people values as key constructs, he stated that ‘values are held from that culture considered as being normal. He by individuals as well as by collectivities; culture defined a value as a ‘conception, explicit or implicit, presupposes a collectivity’ (Hofstede, 2001, p 5). distinctive of an individual or characteristic of a group, Schwartz (1992) focused on a variety of values, includ- of the desirable which influences the selection from ing: achievement; benevolence; conformity; hedonism; available modes, means and ends of action’ (1951, p power; security; self-direction; and tradition. Some of 395). Kluckhohn’s theoretical development was pub- these values may be influential in determining the social lished in two famous books, Mirror for desirability of entrepreneurship and the nature of Man (Kluckhohn, 1949) and Culture: A Critical Review entrepreneurial activity. of Concepts and Definitions (Kroeber and Kluckhohn, 1952). Trying to put Clyde’s theory into practice, his wife, Florence, studied Indigenous Americans and co- Findings authored a publication with Fred L. Strodtbeck (Kluckhohn and Strodtbeck, 1961). These authors Various religions value entrepreneurship to different defined value orientations as ‘complex but definitely degrees patterned (rank-ordered) principles, resulting from the Over the years, numerous empirical studies have transactional interplay of three analytically distinguish- reported on the influence of religion on the economy or, able elements of the evaluative process – the cognitive, more specifically, that some religions are more repre- the affective, and the directive elements – which give sented than others in entrepreneurship and/or the small ENTREPRENEURSHIP AND INNOVATION Vol 10, No 2 89
Religion and entrepreneurship business sector. Classical social theorist Max Weber appears as the religion least conducive to capitalism. (1904) compared taxation figures in Baden, and reported Muslims are very much against competition, against an average of 589 marks per Catholic, 954 marks per private property and less willing to trade off equality for Protestant, and 4,000 marks per Jew; he argued that incentives’ (Zingales, 2006, pp 228–229). In contrast, while Protestantism stressed the development of eco- Badawi (2006, p 208) suggested that ‘Islam preaches a nomic security, Catholics believed that it was easier for a holistic and comprehensive notion of development in camel to fit through the eye of a needle than for a this world and for the hereafter. It does not negate the wealthy man to go to heaven.2 Weber also studied how pursuit of material development in this world … The religion affected the emergence of entrepreneurship in teachings of Islam are also eminently suited to develop- India; he explained that the Jains, an ascetic religious ment in the modern, knowledge-based economy … sect, became a trading sect for purely ritualistic reasons, Besides its emphasis on knowledge, Islam also enjoins a as only in trading could one practise ahimsa, the work ethic that equips the individual to excel in eco- absolute prohibition of the killing of live things. In nomic pursuits.’ Arslan (2000) tested whether Muslims contrast, Theravadism, as practised in Laos, discourages exhibited some values that corresponded to those entrepreneurial behaviour and the result is a relative encouraged by the Protestant work ethic; using absence of Lao men in entrepreneurial activity (Dana, multivariate and univariate analysis of variance, the 1995b). study found high Protestant work ethic scores among ‘Some cultures that value entrepreneurship,’ wrote Turkish Sufis. Shapero, ‘are the … Jains …Jews… Mennonites and In a study of Mennonite entrepreneurs in Paraguay Mormons …’ (1984, p 26). Writing about Estonia after (Dana and Dana, 2007, p 82), it was found that the its independence from the Russian Empire, Liuhto Mennonite religion ‘values asceticism, frugality and (1996, pp 317–329) noted that ‘another interesting detail thrift, but not private property. Entrepreneurship takes a from the statistics is the considerable share of the collective form and cooperatives are important eco- companies classified as Jewish’. Analysing the Middle nomic vehicles, providing jobs for indigenous workers East after the Second World War, Sayigh (1952) found and markets for the produce of self-employed farmers. Christians and Jews to be the prominent entrepreneurs While Mennonite cooperatives thrive here, Indian of Lebanon. Gadgil (1959) noted that Muslims, Chris- cooperatives modelled after them have not had the same tians and Jews were the chief traders of Kerala in South levels of success.’ India. Lasry (1982) noted the percentage of entrepre- In the words of Lewis (1955, p 105), neurs among Sephardic Jewish immigrants in Montreal as being significantly higher (38%) than among immi- ‘If a religion lays stress upon material values, upon grants to Canada in general. Jenkins (1984) showed that thrift and productive investment, upon honesty in Protestants in Northern Ireland manipulated ethnicity in commercial relations, upon experimentation and risk- the realm of economic transactions, and thus dominated bearing … it will be helpful to growth, whereas in so the economy there. In Germany, Klandt (1987, p 31) far as it is hostile to these things, it tends to inhibit found that a Protestant upbringing was ‘more likely to growth.’ lead to independent business activity than a Catholic upbringing’. In the UK, Quakers have been (Corley, 1998) and continue to be (Ackrill and Hannah, 2001) Different religions yield dissimilar patterns of entrepre- overrepresented in the realm of enterprise. In the USA, neurship Kraybill and Bowman (2001) and Kraybill and Nolt A contemporary of Weber, Sombart (1911) observed (1995) identified a causal relationship between religion that the economic centre of Europe shifted with the and self-employment among the Amish. migration of Jews; he linked economic development in In a study of attitudes, Guiso, Sapienza and Zingales Europe to Jewish entrepreneurs.3 Across the Atlantic, (2003, p 228) noted that ‘with the exception of Bud- William Howard Taft (1919, p 7), former President of dhists, religious people of all denominations are more the USA, suggested that Jews ‘developed trade, poetry, inclined to believe that poor people are lazy and lack philosophy, science and literature’. Taft (1919, p 10) will power’. Zingales (2006, p 228) suggested that also gave examples of how Europeans had prospered by ‘Buddhism and Christianity seem most conducive to means of Jews, who ‘were forbidden to hold land. The capitalism, and Islam the least’. ‘Comparing the average nobility manufactured the liquor, and they were willing response of different religious denominations,’ he and anxious to have the Jews sell it, who thus, for lack elaborated, ‘we find that, other things being equal, of other occupation, became the innkeepers, the purvey- Buddhism seems to promote the best attitudes towards ors in the demoralizing liquor business.’ the market system. Christian religions follow … Islam In a landmark study comparing different religious 90 ENTREPRENEURSHIP AND INNOVATION Vol 10, No 2
Religion and entrepreneurship groups in New York City, Glazer and Moynihan (1963, animal feed. The French offered protection to these pp 147–148) noted, people who supplied their army and this led to a mass immigration of Jews from central Europe, to Alsace.’ ‘Jews already constitute a majority of those engaged (Dana, 2006, p 589) in many businesses … In the great banks, insurance companies, public utilities, railroads, and corporate Controlling for climate, geographic position and other head offices that are located in New York, and in the factors, Baldachino and Dana (2006) compared entre- Wall Street law firms, few Jews are to be found… preneurship in French St. Martin with that in Dutch Sint Obviously, in addition to discrimination, one must Maarten, the latter more influenced by a Protestant work also reckon with taste and tradition among Jews, ethic. While two cultures share a little island, colonial which may have had their origin in discrimination, influences have been different, and the entrepreneurship but which may now lead a good number of Jews sector reflects this. While Dutch Sint Maarten is home to voluntarily to avoid huge bureaucratic organizations prosperous traders, French St. Martin is home to self- in favour of greater freedom in small companies, as employed farmers. independent entrepreneurs…’ Specialization along religious lines shapes entrepre- Iyer (1999, p 103) noted, neurship In some cases, certain religious groups specialized in ‘The case of Indian business communities is slightly specific economic sectors. For two centuries, Quaker different from the generalized pattern observed for entrepreneurs including John Cadbury, Joseph Fry and the rest of Asia, especially in that such business the Rowntree family dominated the chocolate industry communities have traditionally evolved within across England. Cadbury flourished in Birmingham, Fry specific religions and castes. Moreover, the religion blossomed in Bristol, and the Rowntrees prospered in of the Indian merchant community, in contrast to the York. John Cadbury expanded his business when he general strictures on wealth and profits as in other invited his brother Benjamin to join him in 1847; religions (including Asian religions, such as Confu- employees were well cared for, in accordance with cianism), treats money as neutral and does not religious values. condemn wealth generation itself. This has important During the mid-nineteenth century, Seventh-day implications in the ways the Indian merchant com- Adventists in the USA – preaching vegetarian values – munity assimilates the contradictory objectives of established the Western Health Reform Institute, later wealth creation and frugality with religious piety that renamed the Battle Creek Sanitarium, in Battle Creek, serves to enhance market reputation.’ Michigan. Aligned with the beliefs of Sylvester Graham (the minister who invented the Graham cracker),4 Circumstance led Jews to become merchants in Alsace: patients were required to adhere to strict diets. The superintendent was a fervent Seventh-day Adventist, Dr ‘Their religion prevented them from working on John Harvey Kellogg, who with his brother William Saturday, and the Church forbade them labouring in Keith Kellogg invented the modern breakfast cereal, in their fields on Sundays. The Church also banned line with their religious beliefs. Kellogg’s thus began them from giving employment to Christians. In with 44 employees in Battle Creek, Michigan. A patient, addition, experience taught the Jews that, in times of Charles William Post, founded a competing manufac- religious persecutions, it was more convenient to turer and launched the first nationwide advertising have moveable assets, such as gold, cattle and later campaign in the USA. In Australia and New Zealand, diamonds, than to own immovables … By the the Seventh-day Adventist Church also had connections fourteenth century, Jews no longer had a choice; to the cereal sector; important players included Grain under the Saxon civil code, Meißener Rechtsbuch, Products and Sanitarium. Jews were banned from owning land. Yet, in Alsace, In Canada, meanwhile, Methodist entrepreneurs this did not lead to urbanisation, because Jews were established large department stores. In 1869, Timothy not allowed to live in the cities. Alsace remained part Eaton opened a store introducing fixed prices and cash of the Holy German Empire until being acquired in sales (as opposed to negotiated prices and credit sales), 1648, by the Kingdom of France. At the time, the soon expanding into the Eaton’s chain; he introduced the French army was facing a shortage of horses, and a mail order catalogue to Canadians in 1884. Robert lack of animal feed for the horses it had. The Jews of Simpson opened his first department store in 1872, and Alsace, with their experience in commerce, effi- this also developed into a national chain of department ciently supplied the French with horses and with stores. Norcliffe (2001) noted that Toronto’s principal ENTREPRENEURSHIP AND INNOVATION Vol 10, No 2 91
Religion and entrepreneurship bicycle manufacturers during the late nineteenth century building boom that has transformed Manhattan, most were owned by Methodists, including the Flavelle, of the big builders have been Jews: Uris Brothers, Harris and Massey families. Tishman, Erwin Wolfson, Rudin, Webb and Knapp Fishberg (1911, p 531) observed that Jews were (Zeckendorf)…The finest of the postwar office concentrated in precarious occupations such as com- buildings, Seagram’s, which is perhaps the most merce; he suggested that Jews were ‘ambitious and lavish and expensive in use of space and detail, was persevering, possessing an enormous amount of “push”, erected by a company headed by a Canadian Jewish which he cannot always bring into play while struggling communal leader, Samuel Bronfman…’ against adverse circumstances’. Raphaël (1980) noted the clustering of Jews in the livestock trade in Alsace. ‘Amish entrepreneurs,’ wrote Hawley, ‘tend to cluster Dana (2006, p 590) wrote, heavily in certain small business ventures. This phenom- enon can best be described by order of the Ordnung, ‘Still forbidden to own land, deprived of entry into which requires that the Amish establish only those stores universities, excluded from the guilds and not and small businesses that meet the product and service allowed to reside in cities, these people tended to be needs of the Amish community’ (1995, p 320). ‘In order travelling merchants, linking the urban and rural to maintain their values,’ explained Dana (2007b, p economies. In September 1791, Jews were permitted 142), ‘the Amish try to avoid close contact with people to reside in the cities of Alsace, and this helped them who do not hold the same traditions. Furthermore, due expand their commercial networks … The fathers and to religious discrimination in the past, the Amish often elder brothers would carry their loads on backs. This exhibit a mistrust of outsiders. The primary motive of included utensils, candles and soap, as well as animal self-employment among the Amish is neither profit nor hides, laces, string and used clothing. Wealthier prestige, but rather the maintenance of cultural values, merchants used man-powered pushcarts. The excep- separately from mainstream society such as to empha- tions were those known as Esselje´de (donkey-Jews), size humility over pride.’ Such segregation from as they would travel from one village to another with mainstream society helps the Amish retain social capital, a donkey-drawn cart; they traded kitchenware and and this supports Borjas (1992), who analysed ethnic other household items, accepting rags and beehives capital and the value of isolation. as payment. Livestock merchants constituted a class An ethnographic study of Morocco (Dana and Dana, of their own. Some had a horse-drawn wagon on 2008, p 215) noted that some goods ‘were sold only by which two calves could be transported. At the end of Jews while others were sold only by Muslims. Silver- the nineteenth century, Jews had a monopoly in cattle smiths were invariably Muslim, while goldsmiths were dealing in areas of Baden, Bavaria, Hanover, Jewish. Jews were also very active in the spice trade, Rhineland and Westphalia. Until the First World War, and they specialised in the socio-economic function of most independent cattle dealers in Germany (includ- distribution … Many Jews were peddlers, or suppliers to ing Alsace) were Jewish.’ other vendors, inland. They served as Barthian middle- men.’ Based on oral testimonies of retired entrepreneurs and verified by means of triangulation, Dana (2006) pro- Credit networks, employment networks, information vided an account of the livestock distribution system, networks and supply networks of co-religionists affect which prevailed in Alsace until the Second World War. entrepreneurship In this region of traditional rivalry between French and Germans, the sector was dominated by Jewish entrepre- Credit networks. Credit is at times linked to marriage neurs speaking Jédich-Daitch, serving as a middleman within the Jain community. Dundas (1992) discussed minority and dealing between French-speakers and carefully regulated marriage alliances among Jains, and German-speakers, who did not trade with one another. Laidlaw (1995, p 355) further explained that when a In their study of New York City, Glazer and Jain ‘family contracts a good marriage, its credit Moynihan (1963, p 151) found more evidence of increases’. Iyer and Shapiro (1999) refer to credit clustering: networks among Koreans and Chinese in the USA. Juteau and Paré (1996) refer to credit networks of ‘Merchandising, garment manufacturing, and enter- Jewish entrepreneurs in Canada. Likewise, Dana (2006) tainment maintain their importance, but to them has noted that Jewish cattle dealers relied heavily on other been added a sizable range of light manufacturing, Jews for financing. Co-religionists provided finance and real estate and building. In the latter, especially, when needed. ‘A network of livestock merchants, across Jews play a prominent role … In the great office- the region, facilitated the dissemination of knowledge 92 ENTREPRENEURSHIP AND INNOVATION Vol 10, No 2
Religion and entrepreneurship and availability of finance among co-religionists. In the urban economies,’ wrote Dana, ‘providing cash for event of bankruptcy, an individual was given assistance farmers and a source of meat for consumers. In addition, by other merchants’ (Dana, 2006, p 594). they spread information as required. If one farmer Discussing Jewish and Muslim entrepreneurs in needed a bull, temporarily, for breeding purposes, a Morocco, Dana and Dana (2008, p 215) noted that livestock merchant could source this need’ (Dana, 2006, ‘merchandise was often purchased on credit, thereby p 590). There were also individuals who specialized in requiring a relationship of trust between supplier and information: peddler’. Again, there was often dependence on co- religionists for finance. In a study of Catholic Hispanics, ‘Some Jews did not themselves deal with livestock, Galbraith, Stiles and Benitez-Bertheau (2004) suggested but served as brokers, or informers who simply sold that a co-ethnic capital market appeared to be the last information which would lead to transactions. These dimension developed within an ethnic community. entrepreneurs were called Schmüsser, and their commission was referred to as Sassergeld. Operating Employment networks. Porter (1937) noted that entre- informally, these individuals mingled with the preneurs were giving preference to members of their villagers, identified needs and opportunities and then immediate circle rather than giving equal opportunities waited by the side of a road, knowing that livestock to outsiders. Raistrick (1950) found Quakers to be merchants would be passing by eventually. The clannish and nepotistic. Kraybill and Nolt (1995) Schmüsser then sold their information to livestock observed that Amish entrepreneurs gave preference in merchants. (The word they used for this activity was business to co-religionists. Dana’s (2007b, p 146) vermassere, literally meaning “to inform”.) In order ethnographic study explained the reason behind this: to reduce time spent away from their own villages, ‘While the Amish people believe that a community of the transient merchants preferred to pay for this voluntary believers is the context for life, the fundamen- market research, rather than to conduct this time- tal unit of Amish society and of their economy is the consuming task themselves. The Schmüsser thus family … home-based enterprises allow family members formed an integral part of the business network.’ to work together, reinforcing the Amish family unit’. (Dana, 2006, pp 592–593) Galbraith, Latam and Galbraith (1997) found that successful Hispanic entrepreneurs, often holding Likewise, in his study of 1,200 Muslim entrepreneurs important leadership roles in the local Catholic Church, in London, Altinay (2008) found a strong relationship were actively finding employment for other recent between religion and advice-seeking practices. One immigrants. Galbraith, Stiles and Rodriguez (2003) and interviewee stated, ‘If people from the same religion and Stiles, Rodriguez and Galbraith (2007) suggested that the background do not help and support each other, who Catholic Hispanic and Muslim Arab entrepreneurs were else would do so?’ (Altinay, 2008, p 120). Altinay both dependent on co-ethnic business in their respective (2008) found that Muslims who practised5 their religion enclaves, relying upon co-religionists for labour, relied more on advice from co-ethnics. especially at the start-up phase. In Malaysia, Abdullah (1992) found that Muslim Malays expressed strong Supply networks. Juteau and Paré (1996) and Lee preferences for employing Muslim candidates over non- (1999) found that co-ethnic suppliers were prevalent Muslims. In a study of Turkish entrepreneurs, Altinay among Jewish entrepreneurs in Canada and the USA (2008) likewise found a strong relationship between the respectively. Lee (1999) noted that this provided access religion of an entrepreneur and recruitment. to lower wholesale costs, which could translate to lower retail costs and enhanced competitiveness. Galbraith Information networks. Apart from co-religionist (2007) examined buyers and sellers among two groups: networks that provide credit or preferential treatment for Catholic Hispanics and Muslim Arabs within a US employees, information networks also appear in the metropolitan area; he suggested that the perceived literature and these are sometimes comprised of co- advantage of intra-enclave buying and selling lay in a religionists. Boissevain and Grotenbreg (1987, p 117) sense of ethnic identification that came primarily from a observed that ‘Hindustanis appear to have a larger religion, either Catholic or Muslim, common to each network of relatives than do Chinese and Creole busi- enclave. nessmen. Given the value they attach to family loyalty, this seems to indicate that Hindustanis have access to a Religions provide opportunities for entrepreneurship wider information and support network.’ Religious values may create needs, and these can A co-religionist information network existed in sometimes be translated into opportunities for entrepre- Alsace. ‘They managed the link between the rural and neurship. When Toronto observed a day of rest and ENTREPRENEURSHIP AND INNOVATION Vol 10, No 2 93
Religion and entrepreneurship streetcars were prohibited on Sundays while bicycles (Leviticus, 11:14), ravens (Leviticus, 11:15), owls were permitted, bicycle manufacturers – mostly Meth- (Leviticus, 11:16), cormorants (Leviticus, 11:17), swans, odists – made unprecedented sales (Armstrong and pelicans and eagles (Leviticus, 11:18) are specified as Nelles, 1977). In this case, the observation of religion not allowed. The same is true of the stork, the heron and helped entrepreneurs in the bicycle sector. the bat (Leviticus, 11:19). Leviticus, 11:29 states, ‘These The production of religious products also provides also shall be unclean unto you among the creeping opportunities for entrepreneurship. Orthodox icons, for things that creep upon the earth; the weasel, and the instance, bring profits to dealers as well as to those who mouse, and the tortoise after his kind’. Leviticus, 11:30 make the icons. Likewise, religious dietary requirements adds, ‘And the ferret, and the chameleon, and the lizard, can yield profits to entrepreneurs catering to specific and the snail, and the mole’. Believers are not allowed to needs. Buddhism, Hinduism, Islam, Jainism and eat scavengers and predators; for this reason, observers Judaism are among religions that have dietary restric- refrain from eating catfish, clams, lobsters, oysters and tions, providing opportunities for entrepreneurs and shrimp. even for airlines catering to such religious needs of The result of biblical commandments specifying food observers; this is what Aldrich and Weidenmayer (1993) laws is a lucrative niche market providing kosher have referred to as ‘demand side’ entrepreneurship. products. Rosen (2008) noted that in North America In Islam, some food is halal (meaning ‘permissible’ in alone kosher products were a US$14 billion a year Arabic), while some is prohibited. All fish with scales business; she quoted Chaim Goldberg, saying, ‘There’s (that the Bible approves of as kosher) are halal. The no question that kosher is growing … As the world is Qur’an specifically disallows the consumption of: all getting more global, manufacturers … see kosher as a blood; the carcass of an animal that died on its own or very easy way to market their product’ (Rosen, 2008, p that was killed by another animal; donkey meat; fanged 105). Based in Fair Haven, Newfoundland, Neptune Sea predators; and pork. Furthermore, the Hanafi School of Products is a kosher-sanctioned secondary fish-process- Islam does not approve of the eating of shellfish, ing plant; it produces 200 different products, including including clams, crabs, lobster and shrimp; observers Cajun cod and wasabi salmon. According to Rosen also refrain from eating frogs. According to Minkus- (2008), sales for the first year of this new venture were McKenna (2007), 70% of Muslims worldwide follow estimated to top $2 million. Rosen interviewed the halal food standards, translating into an opportunity entrepreneur behind Neptune Sea Products, who worth US$580 billion annually. Many McDonald’s explained, ‘We only use fish that have fins and scales … outlets are serving halal food in Australia, India, The other main thing is, my employees can’t bring in Indonesia, Malaysia, Pakistan, Singapore, South Africa ham sandwiches for lunch’ (Rosen, 2008, p 106). and the UK. Others who serve halal food at selected Fifteen minutes down the road from Neptune Sea locations include A&W, Burger King, Dunkin’ Donuts, Products is the Rodrigues Winery, a family business in KFC and Pizza Hut. Markland. This is the first winery in Newfoundland and The Judaeo–Christian Bible has even more sophisti- the first kosher and sulphite-free winery in Canada, cated guidelines with regard to what may be eaten, and producing wines from local blueberries, cloudberries, these are outlined in Genesis, Leviticus and Deuter- cranberries, raspberries and strawberries. Exports are onomy. The King James Bible states, ‘Ye shall therefore shipped as far away as Japan. put difference between clean beasts and unclean, and between unclean fowls and clean: and ye shall not make Religious beliefs may hamper entrepreneurial spirit your souls abominable by beast, or by fowl, or by any Buddhism emphasizes the afterlife, and it has been manner of living thing that creepeth on the ground, suggested that Buddhists are not focused on entrepre- which I have separated from you as unclean’ (Leviticus, neurial activity (Cousins, 1996). This is especially so 20:25). Leviticus, 3:17 prohibits observers from eating among Theravada Buddhists. ‘Where Theravada Bud- blood or fat. Leviticus, 22:8 elaborates, ‘That which dhism is the backbone of social and cultural values…,’ dieth of itself, or is torn with beasts, he shall not eat to wrote Lewis (1955, p 105), ‘it may have a restraining defile himself therewith: I am the LORD’ (King James effect on the accumulation of wealth and the rise of an Bible). This is understood to mean that it is not kosher to entrepreneurial class’. Over half a century later, eat food from animals that die themselves or that are Theravada monks are still highly influential in Lao killed by another animal. Leviticus also provides details society. as to what species the Bible allows observers to eat or As discussed by Dana (1995b), Theravada monks not. It is not permitted to eat camel: ‘he is unclean unto have traditionally had a great impact on the educational you’ (Leviticus, 11:4). Hares (Leviticus, 11:6), pork system in Laos; in former times, the only schools were (Leviticus, 11:7), eagles (Leviticus, 11:13), vultures in wats, and they are still consulted on virtually all 94 ENTREPRENEURSHIP AND INNOVATION Vol 10, No 2
Religion and entrepreneurship matters, thereby playing an important role in a diversity Religions have built-in mechanisms for the perpetuation of spheres, ranging from private life to government of values policy. This is elaborated upon in detail in Dana In Jain communities, where business and family overlap, (2007a). Central to Theravada beliefs is the ultimate a merchant’s family and community status is linked to goal to extinguish unsatisfied desires. Its doctrine optimal marriage (Bayly, 1983). Marriage takes place focuses on aspects of existence, including dukkha among co-religionists and within boundaries, and values [suffering from unsatisfied desire] and anicca [imperma- are propagated from one generation to the next. Dana nence]. Assuming that unsatisfied desires cause (2006, p 589) noted co-religionist matchmaking that suffering, then suffering can be eliminated if its cause allowed the perpetuation of religious values: (desire) is eliminated. A respectable person, then, according to this ideology, should not work towards the ‘Travel was intrinsic to their livelihood and during satisfaction of materialistic desires, but should rather business trips these frequent travellers would pray, strive to eliminate the desire itself. A monk, for instance, and eat, with co-religionists, and sleep at their homes. is specifically prohibited by the religion from tilling The religious duty of allowing animals to rest on the fields or raising animals. Sabbath (from sunset on Friday until dusk on Satur- Lao folk tales reinforce the belief that a male monk day) made it impossible to travel with livestock should not labour for material wealth; yet the same during this time of rest. Therefore, business trips folklore conditions women to accept a heavy burden in were often extended due to religious obligations, and exchange for honour, protection and security. Even the considerable time was spent with the families of Lao currency portrays agricultural work being done by other merchants. During this time, matchmaking was women. Numerous Lao families who farm during the a common occurrence, as the son of a merchant wet season become self-employed gold-diggers during fancied the daughter of another. The co-religionists the dry season. Prospectors camp along the Mekong shared the same language, holidays, belief system River, especially in the region of Luang Prabang. The and dietary restrictions. All this, in turn, reinforced women do the heaviest work, digging for dirt and social networking among this ethnic minority.’ panning it in wooden trays. The men weigh the gold, up Likewise, in a study of Amish entrepreneurship, Dana to one gram per day. (2007b, pp 148–149) noted how values – as well as Writing about the former Kingdom of Moldavia, skills – were passed on from one generation to the next: Dana (2005) observed, ‘From a very young age, Amish children develop a ‘Orthodoxy in this kingdom emphasized the respect close relationship with their parents. Parents spend of authority, along with the importance of guilt. A almost all of their time with their children, teaching good Moldavian was expected to obey the religion them Amish cultural values. It is not from formal and work the land. A non-mercantile culture did education in school, but rather from their parents that nothing to encourage the development of entrepre- children learn to become self-sufficient in life. Amish neurship. In 1812, when the kingdom lost Bessarabia boys normally learn a variety of skills on their to Russia, the tsar’s feudal system continued to meet father’s farm. This typically includes cabinetry, non-conformity with punishment.’ carpentry, furniture-making and masonry … Most importantly for the Amish, each generation transmits cultural values to the next. This includes asceticism, Rafiq (1992) suggested that Islam constituted a barrier frugality and thrift … Children thus become predis- to capital access, due to the religious prohibition on posed towards self-employment, as parents guide interest payments. Metcalf, Modood and Virdee them along an almost pre-determined road in life. (1996) concluded that Pakistanis were less successful The young are not encouraged to explore such as to than Indians in self-employment because they were discover themselves, but rather to fit into Amish Muslim. society, and to feel needed within it. Often, a son Finally, a religion may encourage entrepreneurship in learns his trade from his father. Even when a son the broad sense, but limit the sectors in which entrepre- does not adopt the same profession as his father, it is neurship takes place. Jainism encourages practical to learn as many manual skills as possible. entrepreneurship in trade, but does not allow self- A son becomes the apprentice of his father at a very employment in agriculture (Iyer, 2004; Nevaskar, 1971). young age. Not only does a son learn how to work, Adherence to this religion thus limits avenues for self- but also more importantly according to Amish employment because of its strict pacifism (Iyer, 1999; tradition, he is conditioned into accepting the Amish Nevaskar, 1971). belief that work is healthy and enjoyable.’ ENTREPRENEURSHIP AND INNOVATION Vol 10, No 2 95
Religion and entrepreneurship For the Amish – as is the case among some other Does entrepreneurship involve being broad-minded religious groups – marrying outside the faith is shunned. (open-minded); capable (competent, effective); or ‘If an Amish woman wants to marry an outsider, she courageous? Examining Rokeach’s instrumental value must leave the community, unless he joins Amish of self-control, might this be linked to Weber’s (1930) society. A deterrent to her leaving is that she is unpre- values of asceticism, frugality and thrift? pared for secular society, while a stumbling block in the attempt to become Amish is the dialect’ (Dana, 2007b, p 149). Similarly, but to different degrees, intermarriage is Final words discouraged by other religions. In a study comparing Sociologist Max Weber (1930) suggested that asceti- Indian entrepreneurs in Singapore and their counterparts cism, frugality and thrift were values that encouraged in the UK, Hamilton, Dana and Benfell (2008) found successful entrepreneurship; these are perhaps necessary that in both countries, most respondents would not allow but insufficient. I would add that context is important. their children to marry outside the faith. Mennonites value asceticism, frugality and thrift, but Old Colony Mennonites have traditionally been opposed to the concept of private property. Hence, among Towards the future Mennonites, individual entrepreneurs are not flagships In a study of mixed marriages and separation, Monahan of entrepreneurship; instead, entrepreneurial activities and Kephart (1954) showed that Jewish families broke take a collective form, as described by Dana and Dana up less often than non-Jewish ones. Presumably this (2007). Indeed, different religions yield dissimilar allowed values to be reinforced and to be passed on patterns of entrepreneurship. from one generation to the next. As society becomes This paper discussed several observable patterns: (1) increasingly tolerant of mixed marriages, what will various religions value entrepreneurship to different happen to values in the future? degrees; (2) different religions yield dissimilar patterns Glazer and Moynihan (1963, pp 298–299) found no of entrepreneurship, possibly due to value differences evidence of convergence among different religions: (such as asceticism, frugality and thrift) but also due to specialization (sometimes resulting in a monopoly) and ‘Thus, a Jewish ethos and a Catholic ethos emerge: networks; (3) specialization along religious lines shapes they are more strongly affected by a specific religious entrepreneurship; (4) credit networks, employment doctrine in the Catholic case than in the Jewish, but networks, information networks and supply networks of neither is purely the expression of the spirit of a co-religionists affect entrepreneurship; (5) religions religion … The important fact is that the differences provide opportunities for entrepreneurship; (6) religious in values and attitudes between the two groups do beliefs may hamper entrepreneurial spirit; and (7) not, in general, become smaller with time. On the religions have built-in mechanisms for the perpetuation contrary: there is probably a wider gap between Jews of values. and Catholics in New York today than in the days of When learning about religions, it is evident that each Al Smith.’ has a set of values. Respect must be paid to the distinc- tiveness and differences of all. Is this still true almost five decades later? Linking entrepreneurship to values offers endless possibilities for future research, whether or not these Acknowledgments values are promoted by a religion. Some of Rokeach’s The author thanks Professor Ivan Light (UCLA) for (1973) values may impact on entrepreneurship, and interesting discussions leading to this article. He also empirical investigation of this could present interesting thanks the following for comments on preliminary research opportunities. Amish entrepreneurs value drafts: Dr Garth Cant (University of Canterbury); Dr religion over prosperity, but might Rokeach’s terminal Sarah Drakopoulou Dodd (ALBA Graduate School of value of a prosperous life lead to an entrepreneurial Business and the Robert Gordon University); Professor start-up? Could it be hypothesized that one who values Gopalkrishnan R. Iyer (Florida Atlantic University); and freedom (independence, free choice) as per Rokeach Professor Richard W. Wright (UCLA). (1973) might choose to become an entrepreneur? Likewise, it could be empirically tested whether entrepreneurs exhibit some of Rokeach’s (1973) instru- Notes 1 mental values. Might there be a relationship between See Young (1991) and Young and Sloman (1986). 2 This is based on Matthew, 19:23–24. Rokeach’s instrumental value of ambition (hard- 3 Rath and Kloosterman (2003, pp 123–124) revisited this working, aspirational) and successful entrepreneurship? theme. They noted that ‘The arrival of Jews from the Iberian 96 ENTREPRENEURSHIP AND INNOVATION Vol 10, No 2
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