Exploring Entrepreneurship and SME Development in a Post Soviet Context

AbsractThis discussion paper is concerned with entrepreneurship and the development of small andmediumsized enterprises (SME) in Central and Eastern European (CEE) countries, wherethe transition from a socialist command economy towards a marketbased system opened upenormous possibilities for private entrepreneurs. Since the early 1990s, private entrepreneurshipgained ground, and the same applies to research on new and small enterprises [e.g., Aidis (2003,2006), Aidis et al. (2007), Djankov et al. (2005), Dombrovsky and Uebele (2005), Lageman (1995),McIntyre and Dallago (2003), OECD (1996), Pfirrmann and Walter (2002), Sauka and Welter (2007),Smallbone (1997), Smallbone and Welter (2001a, 2001b, 2003, 2006a, 2006b), Welter (1996, 1997,2005), Welter and Smallbone (2003), Welter et al. (2004, 2006)], although some authors considerentrepreneurship research in CEE still to be a very young field [Meyer and Peng (2005)2]. In thispaper I will discuss some facets of entrepreneurship in a post Soviet (or transition) context, outlineimportant factors influencing entrepreneurship and small business development and review someof the policy issues involved in fostering entrepreneurship development. The paper draws on theresults of several research projects I have undertaken in CEEs together with David Smallbone fromKingston University in the UK and colleagues from various countries.
Table of Contents 1. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 2. Facets of Entrepreneurship in a Post Soviet Context . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 2.1 Is Entrepreneurship Unproductive? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 2.2 An Ethical Dilemma . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 2.3 Proprietors or Entrepreneurs? The Development Potential of Entrepreneurship . . . . . . 9 3. The Embeddedness of Entrepreneurship in a Post Soviet Context . . . . . . . . . . . . . . . . . . . 10 3.1 The Historical Context for Contemporary Entrepreneurship Development . . . . . . . . . 11 3.2 A Soviet Legacy? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 4. Challenges for Entrepreneurship and Small Business Development in a Post Soviet Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17