Cross-Cultural Comparative Study of Entrepreneurial Leadership Traits Among Brazil and China in Small Businesses

Abstract: Title: Cross-Cultural Comparative Study of Entrepreneurial Leadership Traits Among Brazil and China in Small Businesses Authors: Ana Clara Mueller Meirinho and Li Mengting Level: Master Thesis, 30 hp Keywords: Entrepreneurial leadership, Leader traits, Hofstede’s 6D Model, Small Business, Cross-Cultural leadership, Brazil, China. Background: Entrepreneurship is important among all the countries for the growth and prosperity of nations due to movement of economic activities that they generate. To sustain a business, the character behind it, known as a leader, plays an important role since for guiding a business the entrepreneurs needs to provide a clear vision for the company. Entrepreneurial leaders can have different postures when leading business inside a country. Yet, when comparing between countries, their behaviors can be influenced by many aspects, mainly because of the culture of the nation. However, a study showed that appear to be a convergence of entrepreneurial leadership among the BRICS countries. Also, there have been a lack of studies of entrepreneurial leadership in emergent economies like the BRICS countries, and for that reason, Brazil and China were selected to be the main focus of this study. Furthermore, studies also lack measurements of entrepreneurial leadership traits and behaviors. Research Question: What are the predominant traits of entrepreneurial leaders of small business and which cultural aspect impact on the behaviour of leaders among Brazil and China? Sub research question: What are the similarities and differences on the way that leadership is conducted by entrepreneurs of small businesses among Brazil and China? Purpose: The purpose of this study is, therefore, to describe, explore and instigate predominant traits of leaders as entrepreneurs in small businesses that can lead to distinct behaviour, through investigations in Brazil and China. In addition, this study also verifies similarities and differences of leaders behaviour that can differ from one culture to another, due to cultural impact. This way, the authors developed a framework, to better visualize entrepreneurial leadership traits comparison between Brazil and China, giving the readers a better understanding of preferred traits in both countries, directing them to take right actions considering the cultural values. Method: A mixed method approach was used in this research. Qualitative semi-structured exploratory interviews with abductive approach were conducted with leaders who are entrepreneurs of small businesses in South Brazil and Urban China, which focuses on entrepreneurial leadership traits. Also, quantitative surveys were collected, aiming to measure cultural value and predominant traits of leaders, complementing the qualitative interview. Theoretical Framework: Articles used for this study were meticulously selected, focusing on reliable sources and quality content; also, it was given preferences to new data from well- known journals. This section covers subjects that are interesting and fit to the thematic, such as regarding of Entrepreneurial Leadership and Traits, Hofstede 6D Model, Importance of Micro and Small Businesses to Society, and economic and political facts about Brazil and China, alike as definitions and data of micro and small business characteristics in each nation, and the nations own beliefs. Particular information from the countries was brought from organizations and governmental related websites. Discussion and Conclusion: Based on the results of respondent’s surveys and the interpretation of interviews with entrepreneurs among south Brazil and China. The results are structured and analyzed in the same sequence as the surveys and interviews are designed using Hofstede 6D model, discussing first south Brazil and urban China and then a general overview about similarities and differences of both countries for each section. The study revealed that the preferred entrepreneurial leadership traits are divergence between two countries, while there appear to be a convergence of entrepreneurial leadership style that encompass more democratic, flexible, opportunity oriented yet still remaining the traits of paternalistic and authoritative leadership including directing, participative, consideration of subordinates in small businesses among both countries. Furthermore, the author presented an overview of similarities and different entrepreneurial leadership traits among two countries by categorized based on distal attributes, including personality, cognitive ability and motives values, as well as proximal attributes, including social appraisal skills, problem solving skills and expertise/tacit knowledge are shown in the end.