Entrepreneurship in a Remote Sub-Arctic Community

TLDR: In this article, the authors compared the existing theories of entrepreneurship with the findings of an ethnographic study of entrepreneurs in a small Alaskan town, and found that the former tend to become reactive entrepreneurs (less by choice than by life circumstances), while the latter tend to be opportunity seekers.

Abstract: Relatively little is known about entrepreneurial activities of the sub-Arctic. This explanatory study compares the existing theories of entrepreneurship with the findings of an ethnographic study of entrepreneurs in a small Alaskan town. In the study, the word "entrepreneurs" refers to individuals who earn their livelihood by exercising some control over a business activity, and who produce more than they can consume in order to profit from the sales. Findings are analyzed using a theoretical typology of the entrepreneur derived from interdisciplinary literature. The study involved all of the town's 65 entrepreneurs. Non-quantitative methods were used in order to research not only individual entrepreneurs, but also the socio-cultural context. The study used a variety of ethnographic methods, and included participant observation and open-ended interviews of business owners, employees, and key informants. Traditional categorizations of entrepreneurs were found to be inappropriate to compare Eskimo and non-native entrepreneurs. Individual entrepreneurships were classified according to the theory relevant to the specific experience of each person. Eskimos in the town have a lower tendency to become entrepreneurs than non-natives. Perception of and response to opportunity are culture-bound. Eskimos and non-native respondents relate to opportunity differently; the former tend to become reactive entrepreneurs (less by choice than by life circumstances), while the latter tend to be opportunity seekers. Implications for new venture programs on fostering entrepreneurial spirit among non-entrepreneurship-oriented cultures are discussed. (AT)