Entrepreneurship and Small Business Development in by David Smallbone, Friederike Welter

By David Smallbone, Friederike Welter

This publication examines entrepreneurship and small enterprise in Russia and key nations of jap Europe, displaying how a ways small companies have constructed, and discusses how some distance 'market reforms' and a marketplace mentality were taken up via usual humans within the genuine daily economic system. for every of the international locations tested - Russia, Ukraine, Belarus, Poland and Estonia - the publication studies the growth of industry reforms in the wider context of social and fiscal transformation, surveys the improvement of entrepreneurship and small agencies up to now, and assesses the position of presidency within the technique, and the strengths and weaknesses of the small company area.

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In many ways, this is the most fundamental and important role for government, which is largely underdeveloped in most of the former Soviet republics. For example, in the Russian Federation, the absence of a recent tradition of private business ownership, combined with a lack of self-governing (business) organisations and a poor public perception of the contribution of small business to social and economic change, means that the state must take a lead in modifying the institutional conditions and in establishing the ground rules on which business is conducted.

Governance and restructuring describes progress in cutting subsidies, introducing effective bankruptcy procedures and introducing sound corporate governance practices. e. ), covers issues such as commercialisation; the extent of the reform of tariffs; the quality of the regulatory framework and the involvement of the private sector. 22 Setting the scene iv Financial institutions, which includes reform and development of the banking sector and the extent to which banking and financial regulations have been raised and implemented to international standards.

This draws attention to the important role of the knowledge, skills, competencies and codes of conduct of their staff, which are the heart of institutional behaviour. As evidence presented in later chapters demonstrates, an inadequate institutional environment, in countries where market reforms have been slow or only partially installed, can play a major role in constraining small business development. In many transition countries with slow reform progress, the legal framework is still the main barrier for the development of small business and entrepreneurship.

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