Institutions and Entrepreneurship Development in Russia:A Comparative Perspective

In this paper we use a comparative perspective to explore the ways in which institutions andnetworks have influenced entrepreneurial development in Russia. We utilize GlobalEntrepreneurship Monitor (GEM) data to study the effects of the weak institutionalenvironment in Russia on entrepreneurship, comparing it first with all available GEM countrysamples and second, in more detail, with Brazil and Poland. Our results suggest that Russia’sinstitutional environment is important in explaining its relatively low levels ofentrepreneurship development, where the latter is measured in terms of both number of startupsand of existing business owners. In addition, Russia’s business environment and itsconsequences for the role of business networks contribute to the relative advantage ofentrepreneurial insiders (those already in business) to entrepreneurial outsiders (newcomers)in terms of new business start-ups.....