Entrepreneurship in the Russian Service Sector: Trends and Developments

Dmitry Shtykhno

Zagreb International Review of Economics and Business, 2008, vol. 11, issue Special Conference Issue, 1-19

Abstract: In a market economy, the service sector across many industries is driven by entrepreneurship translating into powerful driving forces of motivation and competition (creative destruction). Under the post-Soviet transition the service sector in Russia is one of the most dynamic sectors of the national economy. There are strong indications of positive entrepreneurial developments in such segments of the service sector as construction and home improvement, real estate, wholesale and retail trade, banking, insurance, hospitality, tourism, and other industries. The paper identifies current patterns and trends, motivations and obstacles for entrepreneurship in the Russian service sector. It focuses on high propriety sub sectors in the service sector that are highly attractive for entrepreneurs and factors making those sub sectors particularly attractive; geographic, demographic and other factors affecting demand for services; major obstacles in the service sector affiliated with entrepreneurial business venture start-ups; key governance and support factors on the part of local and federal government; and finally common patterns of decision making in entrepreneurial business venture start-ups.

Date: 2008
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