Max Weber contended that entrepreneurial growth is dependent upon ethical value system of the society concerned. The central figure of the Weber’s theory of social change consist in his treatment of the protestant ethic and the spirit of capitalism. This theory also provides an analysis of religion and its impact on entrepreneurial culture.

According to Weber, the sprit of rapid industrial growth depends upon rational use technology, acquisition of money and its rational use for productivity and multiplication of money. These elements of industrial growth depend upon a specific value orientation of individuals, i.e., the tendency of acquisition and rational attitude towards action which are generated by ethical values.

Weber analyzed his theoretical formulation by the relationship that he found between protestant ethic and the spirit of capitalism. He found his thesis true about other communities also. He held that protestants progressed fast in bringing capitalism because their ethical value system provided them with rational economic attitude, while the Jews adjoins failed to develop industrial capitalism because of the value of ‘partita’ (the restriction on having any contact with other communities)”

Max Weber, analyzed and its impact on entrepreneurial culture. According to him the ‘spirit  of capitalism’ shapes attitudes towards the acquisition of money and the activities involved in it. He also distinguished between the ‘spirit’ of capitalism’ and ‘adventurous spirit’. The former is subjected to a stick discipline which is quite incompatible with giving free rein toe impulse. This spirit of capitalism can be generated only when mental attitude in the society is favorable to question of wealth. According to Weber the protestant ethic provides this mental attitude while Hinduism lacks such an attitude.

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