Local culture as a context for entrepreneurial activities

This paper examines how an industrial legacy leads to the formation of a distinct local culture and how the culture's survival provides a context for the subsequent entrepreneurial activities in new local industries. The discussion about culture as a key driver of entrepreneurship and economic growth is well established in the academic debate. However, we know little about how culture is formed. Through a qualitative case study of two polar Swedish cities, the study highlights four key factors which are instrumental in the formation of local culture: initial conditions, characteristics of key players, network activities and composition of newcomers. We show how the local entrepreneurs responded to the underlying assumptions of the two different cultures.