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Entrepreneurship: First Results from Russia

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  • Simeon Djankov

    (The World Bank)

  • Edward Miguel

    (UC Berkeley and NBER)

  • Yingyi Qian

    (UC Berkeley)

  • Gerard Roland

    (UC Berkeley and CEPR)

  • Ekaterina Zhuravskaya

    (New Economic School/CEFIR and CEPR)

Abstract

We study the determinants of the decision to become an entrepreneur in 7 Russian cities. Using data on 400 entrepreneurs and 440 non-entrepreneurs, we find considerable variation in the proportion of entrepreneurs, ranging from 6% of adult population in Nizhny Novgorod, to 16% in Perm and 18% in Taganrog. We find evidence that social network effects play a large role in determining entrepreneurial behavior: those individuals whose relatives and childhood friends are entrepreneurs are more likely to be entrepreneurs. Individual characteristics including academic success and educational background, performance on a test of cognitive ability, personal confidence, greed, and willingness to take risks are also important determinants of entrepreneurship in Russia, echoing the claims of Schumpeter. Certain aspects of the institutional environment play a role, but are secondary to individual characteristics.

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Bibliographic Info

Paper provided by Center for Economic and Financial Research (CEFIR) in its series Working Papers with number w0046.

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Length: 19 pages
Date of creation: Aug 2004
Date of revision:
Handle: RePEc:cfr:cefirw:w0046

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  1. Roland, G. & Verdier, T., 2000. "Law Enforcement and Transition," DELTA Working Papers 2000-25, DELTA (Ecole normale supérieure).
  2. Daron Acemoglu & Simon Johnson & James A. Robinson, 2001. "The Colonial Origins of Comparative Development: An Empirical Investigation," American Economic Review, American Economic Association, vol. 91(5), pages 1369-1401, December.
  3. Jiahua Che & Yingyi Qian, . "Insecure Property Rights and Government Ownership of Firms," Working Papers 97050, Stanford University, Department of Economics.
  4. Banerjee, Abhijit V & Newman, Andrew F, 1993. "Occupational Choice and the Process of Development," Journal of Political Economy, University of Chicago Press, vol. 101(2), pages 274-98, April.
  5. Timothy Frye & Ekaterina Zhuravskaya, 2000. "Rackets, Regulation and the Rule of Law," Working Papers w0002, Center for Economic and Financial Research (CEFIR).
  6. Gérard Roland, 2004. "Transition and Economics: Politics, Markets, and Firms," MIT Press Books, The MIT Press, edition 1, volume 1, number 026268148x, December.
  7. Simeon Djankov & Rafael La Porta & Florencio LopezdeSilanes & Andrei Shleifer, 2000. "The Regulation of Entry," NBER Working Papers 7892, National Bureau of Economic Research, Inc.
  8. Simon Johnson & John McMillan & Christopher Woodruff, 2002. "Property Rights and Finance," American Economic Review, American Economic Association, vol. 92(5), pages 1335-1356, December.
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Cited by:
  1. Giacomin, Olivier & Janssen, Frank & Guyot, Jean-luc & Lohest, Olivier, 2011. "Opportunity and/or necessity entrepreneurship? The impact of the socio-economic characteristics of entrepreneurs," MPRA Paper 29506, University Library of Munich, Germany.

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