To read this content please select one of the options below:

Entrepreneurship development in Russia: is Russia a normal country? An empirical analysis

László Szerb (Department of Management Science, Faculty of Business and Economics, University of Pécs, Pécs, Hungary)
William N. Trumbull (The Ciitadel – Baker School of Business, Charleston, South Carolina, USA)

Journal of Small Business and Enterprise Development

ISSN: 1462-6004

Article publication date: 23 April 2018

Issue publication date: 25 October 2018

772

Abstract

Purpose

Using various macro-level measures of economic and political performance Shleifer and Treisman (2005) and Treisman (2014) call Russia a “normal country” implying that Russia’s economic and political development is not deviating from the other middle-income or transition countries significantly. The purpose of this paper is to challenge this proposition and investigate whether Russia is a normal country in terms of entrepreneurship by comparing Russia with other post-socialist and similarly developed countries.

Design/methodology/approach

Many studies have examined Russia’s institutional setup to explain its deficiencies in entrepreneurial activity. However, there is a lack of comprehensive research taking into account both the individual and institutional dimensions of the entrepreneurial ecosystem. The authors use the Global Entrepreneurship Index (GEI) methodology to analyze Russia’s quality-related individual as well as institutional features from a system perspective in a single model.

Findings

Russia’s performance has been poor relative to the post-socialist countries and to most of the former republics of the Soviet Union. Russia’s entrepreneurial profile is different from other transition and similarly developed non-transition countries, as well. Russia’s scores are less than the scores of other post-socialist countries in six out of the nine pillars of entrepreneurial attitudes and abilities. In sum, conditions supporting entrepreneurship in Russia lag seriously behind other post-socialist countries. Moreover, Russia’s individual scores are even lower than the institutional ones. Hence, improving the hostile environment alone would not be sufficient for entrepreneurship development.

Originality/value

Although, there have been numerous studies analyzing Russia’s macroeconomic conditions, institutional development, and entrepreneurship, there is lack of comprehensive studies. Besides common macro-level measures, the authors use a unique, GEI data set that combines institutional factors relating to entrepreneurship or new business creation with measures of individual capabilities, motivations, and attitudes about entrepreneurship. The single-model framework reveals that individual factors are even greater obstacles to entrepreneurship development in Russia than the institutional factors that most studies focus on.

Keywords

Acknowledgements

László Szerb thanks OTKA-K-120289 titled as “Entrepreneurship and competitiveness in Hungary based on the GEM surveys 2017-2019” for providing support for this research program.

Citation

Szerb, L. and Trumbull, W.N. (2018), "Entrepreneurship development in Russia: is Russia a normal country? An empirical analysis", Journal of Small Business and Enterprise Development, Vol. 25 No. 6, pp. 902-929. https://doi.org/10.1108/JSBED-01-2018-0033

Publisher

:

Emerald Publishing Limited

Copyright © 2018, Emerald Publishing Limited

Related articles