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Entrepreneurial risk as consequence of contradictions of economic interests in forestry in Russia

Author

Listed:
  • S. Morkovina

    () (Management and Economy of Entrepreneurship, Voronezh State Forestry Engineering Academy, Voronezh, Russia)

  • Elena Popkova

    (Department of World Economy and Economy Theory, Volgograd State Technical University, Volgograd, Russia)

  • E. Panyavina

    (Department of Management and Economy of Entrepreneurship, Voronezh State Forestry Engineering Academy, Voronezh, Russia)

  • A. Ivanova

    (Department of Management and Economy of Entrepreneurship, Voronezh State Forestry Engineering Academy, Voronezh, Russia)

Abstract

The paper presents the results of the research of entrepreneurial environment in the forest sector. Complex and simple groups of risks, defining entrepreneurial activity in the forestry sphere, are determined. The most dangerous risky factors are spotted and their profile is obtained in respect of forestry entrepreneurship. A methodical approach to assessment of business risks in forestry is formulated, by using criteria values of the consequences of risk manifesting and probability of risk manifesting. Critical consequences for the forestry entrepreneurship, in the case of risk realization, are the following: enterprise insecurity with own financial resources, increase of rental rates and payments, qualified personnel flow out, disposal of key workers. It is explained that internal imbalancing of forest relations, including economic interests of the state, entrepreneurs forest managers, ecologists and population, which is expressed in distortion of real forest revenues, inefficient forestry running, deterioration of forest production quality, decrease of investment attractiveness of forest sector, leave of especially valuable forest for lumbering, replacement of forms and methods of lumbering and forest management, decrease of reforestation quality, etc., is an prerequisite for forestry entrepreneurial risks arising.

Suggested Citation

  • S. Morkovina & Elena Popkova & E. Panyavina & A. Ivanova, 2014. "Entrepreneurial risk as consequence of contradictions of economic interests in forestry in Russia," Review of Applied Socio-Economic Research, Pro Global Science Association, vol. 7(1), pages 94-101, June.
  • Handle: RePEc:rse:wpaper:v:7:y:2014:i:1:p:94-101
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    File URL: http://reaser.eu/RePec/rse/wpaper/R7_10_Morkovina_p94-101.pdf
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    References listed on IDEAS

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    1. E. G. Popkova & M. K. Romanova & L. I. Kukaeva, 2012. "Elaborate cluster policy – new vision for the regional development," Review of Applied Socio-Economic Research, Pro Global Science Association, vol. 4(2), pages 198-207, Decembre.
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    1. repec:ers:journl:v:xx:y:2017:i:3b:p:480-489 is not listed on IDEAS

    More about this item

    Keywords

    entrepreneurial risk; entrepreneurship; forestry; forest relations;

    JEL classification:

    • L73 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Forest Products
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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