Sociologists have argued that entrepreneurship is most likely to emerge under a specific social culture. They feel that social sanctions, cultural values and role expectations are responsible for the emergence of entrepreneurship. According to Cochran (1965) the entrepreneur represents society’s model personality. His performance depends upon three factors : (i) his own attitude towards his occupation, (ii) the role expectations held by the sanctioning groups, and (iii) the occupational requirements of the job. Society’s values are the most important determinant of the attitudes and role expectations.

Hoselitz (1964), formulated his social-cultural theory on the assumption that certain persons are endowed with creative power in any cultural or social group and they develop different attitudes while practicing social conduct. Entrepreneurship can be developed only in a society in which cultural norms permit variability in the choice of paths of life and in which the relevant process of socialization of the individuals are not so completely standardized. The entrepreneurs develop their attitudes in the direction of productivity and creative integration.

Hoselitz argued that entrepreneurship can develop in a society when its culture permits a variety of choices and where social processes are not rigid and in a situation which encourages the development of personalities interested in enterprise the suggested that culturally marginal groups promote entrepreneurship and economic development. Such groups, because of their ambiguous position are peculiarly suited to make creative adjustments and there by develop genuine innovations. In several countries, enterprisers have emerged from particular socio-economic classes. History reveals that many leading entrappers have emerged from a particular socio-economic class. Fore example. Marwaris and pareses in India an Samurai in Japan are considered to be the dominant social classes as the source of entrepreneurship.

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