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Entrepreneurship in Transition Economies: Selected Characteristics and Relevant Lessons for Cuba

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  • Mario A. González-Corzo

    (Department of Economics and Business, Lehman College, City University of New York (CUNY), USA)

Abstract

The experiences of the former socialist countries of Central and Eastern Europe, and the former Soviet Union demonstrate that entrepreneurs can make important contributions in transition economies. The most notable include employment creation, the efficient utilization of human capital, and positive externalities resulting from the entrepreneurial drive to experiment, innovate, and adapt. In these countries, as well as in China and Vietnam, the transition from the classical socialist system facilitated the emergence of four types of entrepreneurs (agricultural entrepreneurs, informal sector operators, cadre entrepreneurs, and professional entrepreneurs), which mainly engaged in three principal entrepreneurial strategies: prospecting, networking, and boundary-blurring. The experiences of the former socialist countries offer valuable lessons for Cuba, as it continues to rely on the reduction of the State sector and the expansion of small-scale private entrepreneurial activities in the emerging non-State sector as one of the principal policy measures to gradually "update" its socialist economy.

Suggested Citation

  • Mario A. González-Corzo, 2015. "Entrepreneurship in Transition Economies: Selected Characteristics and Relevant Lessons for Cuba," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 23(01), pages 91-115.
    • Handle: RePEc:wsi:jecxxx:v:23:y:2015:i:01:n:s0218495815500041
    DOI: 10.1142/S0218495815500041
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    References listed on IDEAS

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    1. Gros, Daniel & Suhrcke, Marc, 2000. "Ten Years After: What Is Special about Transition Countries?," Discussion Paper Series 26236, Hamburg Institute of International Economics.
    2. Kornai, Janos, 1992. "The Socialist System: The Political Economy of Communism," OUP Catalogue, Oxford University Press, number 9780198287766, Decembrie.
    3. Ruta Aidis, 2005. "Entrepreneurship in transition countries: a review," UCL SSEES Economics and Business working paper series 61, UCL School of Slavonic and East European Studies (SSEES).
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