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Fall 2005
ISSN 0890-913X
Volume 21, Number 1

Entrepreneurship in Post-Socialist Economies

Tomi Ovaska, Youngstown State University
Russell S. Sobel, West Virginia University
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JournalofPrivateEnterprise,VolumeXX7,Fall2005EntrepreneurshipinPost-SocialistEconomiesTomiOvaskaUniversityofReginaRussellS.SobelWestVirginiaUniversityFollowingthedisintegrationoftheSovietUnioninDecember1991,theformerSovietrepublicsandmanyotherEasternEuropeannationswerefreetomovefromsocialismtocapitalism.Thistransitionprocessrequirednotonlychangesintheeconomicsystemsofthesecountries,butalsochangesinpersonalattitudesandbehaviorstowardprivateenterprise.Privatesectorentrepreneurship,anactivitythathadbeenillegalfordecades,notonlybecamelegalbutitalsobecameessentialforthecreationofwealthandeconomicprogressinthesecountries.AsispointedoutbyHavrylyshyn(2001),overthepastdecadethesepost-socialisttransitioneconomieshavefollowedsomewhatdifferentcourses,basedondifferentinstitutionalreforms,andthedegreeofsuccesshasvariedwidelyacrossthesecountries.'Whiletherearemanywaysinwhichonecouldassessthesuccessofthetransitionalcountries,thispaperfocusesonexploringandexplainingthedifferencesintheirabilitytogenerateandfostercontinuingprivate-sectorentrepreneurship.Thebasisforourfocusonentrepreneurship,ratherthanothermeasuresoftransitionalsuccess,isthatentrepreneurshipisincreasinglybecomingrecognizedasakeyfactorcontributingtoeconomicgrowth.Foradditionalevidenceonthevarieddegreeofsuccessamongthesecountries,seeCamposandCoricelli(2002).SeeLeleuxandSurlemont(2003)foranexampleofthetypeofworkthathasbeendoneonventurecapitalandentrepreneurshipintraditionalEuropeancountries.TomiOvaskaandRussellS.Sobel8
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