Post-Communist Rural Entrepreneurship in Bulgaria

Abstract

Purpose

This chapter takes a qualitative snapshot of rural entrepreneurs in Bulgaria. The aim is to shed light on the formation of non-farm start-up intentions in rural post-communism communities.

Methodology

A qualitative ethnographical methodological approach centred on a theoretical framework, based on Ajzen’s (1991) Theory of Planned Behaviour. Primary survey data are drawn from the village of Kostandovo, in the Pazardjik region of Bulgaria.

Findings

A holistic perspective reveals entrepreneurship to be just one facet of complex rural livelihood strategies. Distrust in formal institutions by rural entrepreneurs dominates the Bulgarian business climate. A culture of informality in business is accompanied by widely accepted corruption. Crucial factors affecting the start-up decision in post-communist economies are social capital, a lack of experience of the entrepreneurs, and by public administrators.

Practical implications

The presented evidence highlights different dimensions of the theoretical constructs. Future research could focus on the impact of inefficient/corrupt institutions on the decisions of potential rural entrepreneurs.

Originality/value

By coupling universally applicable intention predicting theory with unique ethnographic evidence, the chapter gives a face of the otherwise abstract entrepreneurial agents. The perceptual perspective tackles the most relevant start-up aspects of the post-communist context, providing insights applicable beyond the case country.

Citation

Traikova, D., Möllers, J. and Buchenrieder, G. (2014), "Post-Communist Rural Entrepreneurship in Bulgaria", Exploring Rural Enterprise: New Perspectives On Research, Policy & Practice (Contemporary Issues in Entrepreneurship Research, Vol. 4), Emerald Group Publishing Limited, Leeds, pp. 193-213. https://doi.org/10.1108/S2040-724620140000004009