Reluctant entrepreneurs of the Russian far east: Another view on the economic strategies of entrepreneurs

Abstract

Research into private businesses in post-Soviet Russia began with the collapse of the Soviet Union. This paper focuses on a specific segment of private entrepreneurs who I call ‘reluctant entrepreneurs’, and revises the concept of a ‘new entrepreneurship’ in Russia. The people under study entered into business reluctantly in the early 1990s, when salaries in state jobs were not paid. The majority of these entrepreneurs planned to either return to a public-sector job or maintain their affiliation with the state enterprises. This attitude contradicts the dominant approach in academic writing, in which private entrepreneurs in post-socialist countries see entrepreneurship as a new perspective and an act of self-fulfillment. The strategy of the entrepreneurs under study is also oriented against constant expansion and innovation. Moreover, in their activities entrepreneurs are led by local social norms that do not often support the earning of direct profit. Such practices are caused by the current economic climate in Russia, where the state shows little interest in the activities of small and medium-sized entrepreneurs. This article suggests that there is a need for new conceptual tools to analyze these facets of the private economy.