Abstract
This study introduces a concept and measure of “error tolerance culture” that could advance our understanding of cross-national variations in entrepreneurial activity and risk-related outcomes. Using data from 58 countries of the GLOBE study, we show that the cultural practice of error tolerance constitutes a meaningful measure with dual implications: While positively associated with entrepreneurial activity across nations, it is also linked to behaviors that can lead to reduced longevity, increased accidents, and corruption. The proposed measure of error tolerance holds significant potential as a research tool by facilitating the examination of its benefits and drawbacks, as well as uncovering its relationships with critical economic, institutional, and cultural variables.