New Entrepreneurial Ventures in Russia

Nathalia Rogers

American Journal of Economics and Sociology, 2006, vol. 65, issue 2, pages 295-312

Abstract: This article examines the use of social networks by Russia's new entrepreneurs during venture start-up. After outlining the general historical context of economic transformation in Russia, I describe four patterns of transition to private enterprise ownership by individuals with different professional skills, different amounts of initial financial capital, and different types and extent of social networks. This description is based on an original set of data I collected during interviews with owners of small- and medium-size businesses in Russia in the late 1990s. I conclude with a discussion of how such factors as access to the initial financial capital, history of past employment, and extent and type of personal social networks mediate the risks of starting a new venture. Copyright 2006 American Journal of Economics and Sociology, Inc..

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