An Investigation into the Formal Institutional Constraints that Restrict Entrepreneurship and SME Growth in Russia

Abstract

The impact of institutions on the ease of doing business in transition economies has attracted considerable interest in recent years. The literature suggests that institutional quality is crucial in determining levels of entrepreneurship and SME development in such countries. Our research explores the perceptions of Russian SME owners regarding the quality of the institutional environment that they face making use of semi-structured interviews for data gathering purposes. We identify the political, economic and regulatory barriers that restrict entrepreneurship and SME growth in contemporary Russia, together with entrepreneurs’ views as to what reforms are needed for greater business growth in future.

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