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Institutions and Entrepreneurship Development in Russia: A Comparative Perspective

Author

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  • Saul Estrin

  • Ruta Aidis
  • Tomasz Mickiewicz

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.

Suggested Citation

  • Saul Estrin & Ruta Aidis & Tomasz Mickiewicz, 2007. "Institutions and Entrepreneurship Development in Russia: A Comparative Perspective," William Davidson Institute Working Papers Series wp867, William Davidson Institute at the University of Michigan.
    • Handle: RePEc:wdi:papers:2007-867
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    JEL classification:

    • P36 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

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