Institutions and Entrepreneurship Development in Russia: A Comparative Perspective

26 Pages Posted: 26 Sep 2007 Last revised: 19 Oct 2011

See all articles by Saul Estrin

Saul Estrin

London School of Economics & Political Science (LSE); Centre for Economic Policy Research (CEPR); IZA Institute of Labor Economics

Ruta Aidis

University College London; University of Amsterdam - Faculty of Economics and Business (FEB)

Tomasz Mickiewicz

Aston University - Aston Business School

Date Written: February 1, 2007

Abstract

In this paper we use a comparative perspective to explore the ways in which institutions and networks have influenced entrepreneurial development in Russia. We utilize Global Entrepreneurship Monitor (GEM) data collected in 2001 and 2002 to investigate the effects of the weak institutional environment in Russia on entrepreneurship, comparing it first with all available GEM country samples and second, in more detail, with Brazil and Poland. Our results provide strong evidence that Russia's institutional environment is important to explain its relatively low levels of entrepreneurship development, where the latter is measured in terms of both number of start-ups and of existing business owners. In addition, Russia's business environment contributes to the relative advantage of entrepreneurial insiders (those already in business) to entrepreneurial outsiders (newcomers) in terms of new business startups.

Keywords: Entrepreneurship, Institutions, Networks, Russia, Poland, Brazil

JEL Classification: P36, O17, M13

Suggested Citation

Estrin, Saul and Estrin, Saul and Aidis, Ruta and Mickiewicz, Tomasz Marek, Institutions and Entrepreneurship Development in Russia: A Comparative Perspective (February 1, 2007). William Davidson Institute, William Davidson Institute Working Paper, Journal of Business Venturing, Vol. 23, pp. 656–672, 2008, Available at SSRN: https://ssrn.com/abstract=1017252 or http://dx.doi.org/10.2139/ssrn.1017252

Saul Estrin (Contact Author)

London School of Economics & Political Science (LSE) ( email )

Houghton Street
London, WC2A 2AE
United Kingdom

Centre for Economic Policy Research (CEPR)

London
United Kingdom

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Ruta Aidis

University College London ( email )

Gower Street
London
United Kingdom

University of Amsterdam - Faculty of Economics and Business (FEB) ( email )

Roetersstraat 11
Amsterdam, 1018 WB
Netherlands
+ 31 20 525 4011 (Phone)
+ 31 20 525 4254 (Fax)

Tomasz Marek Mickiewicz

Aston University - Aston Business School ( email )

Aston Triangle
Birmingham, B47ET
United Kingdom

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