Entrepreneurship in Brazil, China, and Russia
We study the determinants of the decision to become an entrepreneur in Russia, China, and Brazil, using unique survey data at the individual level. We find that entrepreneurs have many common characteristics relative to non-entrepreneurs in all three countries. They are more likely to have entrepreneurs among their relatives and friends, place a higher value on work, are happier and perceive themselves as more successful. There are also a few important differences. Russian and Chinese entrepreneurs are more mobile geographically and across jobs. In Brazil, on the contrary, entrepreneurs are less mobile across jobs and industries. Brazil entrepreneurs have higher trust than non-entrepreneurs, while in Russia and China this is not the case. Finally, we confirm that perceptions of institutional environment are an important determinant of individual decisions to expand business.
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