This thesis focuses on the development of entrepreneurship and SME sector in the post-Soviet Russia. More specifically, it investigates the root-cause of stagnant development of entrepreneurship....Show moreThis thesis focuses on the development of entrepreneurship and SME sector in the post-Soviet Russia. More specifically, it investigates the root-cause of stagnant development of entrepreneurship. Convinced that the answer lies in the legacy of the 1990s crisis period, the thesis poses the following question: To what extent is the legacy of formal and informal constraints to businesses in the 1990s impacting the development of entrepreneurship and SME sector in contemporary Russia? As such, the goal of the thesis is to set a clear diagnosis that will provide a framework with strong foundations for future researchers, thereby aiding them in tackling the problem from the root. For that reason, a new hybrid framework is developed, which looks at structural (top-down) and ideational (bottom-up) factors. Based on the findings, Russia currently does not have a political, economic and socio-cultural structure in which entrepreneurship is in high demand. Statist-patrimonial capitalism, thriving corruption, unfavorable credit conditions, bureaucratic and administrative barriers still pose major problems for small and medium businesses. The overarching culture of informality as an accelerator for achieving goals, low entrepreneurial intentions and deteriorated entrepreneurs’ trust in the state are other survivors of the 1990s transition. Many practices have thus, survived the turbulent transition or have evolved from it. However, the essence has remained the same, which keeps the 1990s legacy alive and the vicious circle turning, thereby leaving entrepreneurship and SME stuck in development. Unless the problem of stalemate in development is tackled from the core on the political, economic and the socio-cultural fronts, it is not likely that major advancements will be made in building a strong entrepreneurial Russia with a large and dynamic SME sector.Show less
