From the Literature it was found that Weber theory says the socio-cultural environment of entrepreneurship. in particular to the protestant ethic and spirit of capitalism
can any one make me clear in this? Thanks
Max Weber (1947) analyzed religion and it's impact on economic organization of the society. According to him religious beliefs are the driving or restraining force for generating entrepreneurial activity. The religious beliefs play a crucial role in determining the behaviour or actions of the entrepreneur towards generating or limiting profit. Weber is the first among the social scientists, who took the position that entrepreneurial growth is dependent upon the ethical values of society.
Various factors are explained till now to give a proper analysis of entrepreneurial development. For instance ethical value is said to be the significant factor for entrepreneurial behaviour for Max Weber (1947).
Mr. Gopinath,
Weber's work has been haled and assailed for many reasons. I am a supporter of Weber, and I see his work as valuable in explaining the rise of Capitalism in specific areas of the world at a specific time in history. I see Weber explaining why the culture in the USA and some other western countries formed as it did. One must be careful with assuming that the Protestant work ethic caused the development of capitalism. Rather one may wish to consider that several things came together in a point in history that created an environment where capitalism and entrepreneurial behavior could thrive.
While Weber was a scholar of world religions, he only looked at Protestantism and Catholicism in his work on capitalism. Religion is major is a major factor in the development of culture for a society. Being a major factor in society, religion is bound to have some effect on economic development. While ethics can be drawn from religious ideology, it is not the only source of ethics.
When looking at cultural development all together, one may wish to consider that economics could be a factor in the overall culture rather than the result of the culture. It is often very difficult to know a cause and effect relationship of these various factors. Many times events have correlation, but not necessarily can causation be shown.
Max weber(father of bureaucratic management) was working in ford motor. Which was world`s largest company in terms of sale and manpower employed. most of the workers were labors. what he experienced was 'theory X' thing. which resulted in bureaucratic management. so he was conditioned to think so.
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