Motivations and barriers of entrepreneurs in Moscow and the Moscow region
Abstract
The main goal of this research is to examine the motivation of entrepreneurs from Moscow and the Moscow region in conducting entrepreneurial activity in present economic conditions, and to identify the obstacles slowing down this activity. For implementing this goal a survey of 63 small business owners was conducted. To collect the data, authors selected the ME (micro-enterprise), the SB (small business) and the SME (small and medium-sized enterprise). The actors questioned were entrepreneurs and more particularly the heads of companies running an ME, SB or SME in Moscow and its regions. Using research methods as factor analysis and Cronbach’s Alpha, a hierarchy of the different motives and entrepreneurial barriers were constructed. Investigation results show that regarding motivations of entrepreneurs, 4 components were obtained: extrinsic motivations composed of 4 items, intrinsic motivations composed of 6 items, motivations linked to independence and autonomy with 3 items and motivations related to the safety and well-being of the family with 3 items. In terms of barriers or obstacles encountered by Russian entrepreneurs, in regards with the literature review, we obtained 5 components: barriers of legitimacy consisting of 3 items, administrative barriers with 3 items, financial barriers with 2 items, managerial barriers with 3 items and finally competitive barriers with 3 items. The novelty of this study is to improve knowledge of the motivations and barriers that entrepreneurs in Moscow and its region encounter in the course of their activity.
Keyword : Russian entrepreneurs, motivations, obstacles, entrepreneurial activity
How to Cite
Sulikashvili, N., Kizaba, G., & Assaidi, A. (2021). Motivations and barriers of entrepreneurs in Moscow and the Moscow region. Business: Theory and Practice, 22(2), 256-266. https://doi.org/10.3846/btp.2021.13112
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Barba-Sanchez, V., & Atienza-Sahuquillo, C. (2012). Entrepreneurial behavior: impact of motivation factors on decision to create a new venture. Investigaciones Europeas de Dirección y Economķa de la Empresa, 18(2), 132–138. https://doi.org/10.1016/S1135-2523(12)70003-5
Benzing, C., Chu, H. M., & Kara, O. (2009). Entrepreneurs in Turkey: a factor analysis of motivations, success factors, and problems. Journal of Small Business Management, 47(1), 58–91. https://doi.org/10.1111/j.1540-627X.2008.00262.x
Blanchflower, D. G., & Oswald, A. J. (1998). What makes an entrepreneur? Journal of Labor Economics, 16(1), 26–60. https://doi.org/10.1086/209881
Blawatt, K. (1995). Defining the entrepreneurs: a conceptual model of entrepreneurship. In 12e colloque annuel du CCPME (Conseil canadien de la PME et de l’entrepreneuriat) (pp. 13–37). Thunder Bay, Ontario. Octobre.
Bornard, F., Verzat, C., & Gaujard, C. (2019). Un detour par l’imaginaire pour comprendre les fondements psychosociocognitifs de l’education entrepreneuriale. Revue de l’entrepreneuriat, 1(18), 109–140. https://doi.org/10.3917/entre.181.0109
Brown, T. A. (2006). Confirmatory factor analysis for applied research. Guilford Press.
Bruton, G. D., Ahlstrom, D., & Li, H. L. (2010). Institutional theory and entrepreneurship: where are we now and where do we need to move in the future? Entrepreneurship Theory and Practice, 34(3), 421–440. https://doi.org/10.1111/j.1540-6520.2010.00390.x
Chepurenko, A., & Iakovlev, A. (2013). Hrestomatia: teoria predprinimatel’stva. Rossijskij Jurnal menedjmenta, 11(2), 102–121.
Chu, H. M., Benzing, C., & Mcgee, C. (2007). Ghanaian and Kenyan entrepreneurs: a comparative analysis of their motivations, success, characteristics, and problems. Journal of Development Entrepreneurship, 12(3), 295–322. https://doi.org/10.1142/S1084946707000691
Cortina, J. M. (1993). What is coefficient alpha: an examination of theory and applications. Journal of Applied Psychology, 78(1), 98–104. https://doi.org/10.1037/0021-9010.78.1.98
Deci, E. L., & Ryan, R. M. (2008). Facilitating optimal motivation and psychological well-being across life’s domains. Canadian Psychology/Psychologie canadienne, 49(1), 14–23. https://doi.org/10.1037/0708-5591.49.1.14
Evrard, Y., Pras, B., & Roux, E. (2003). Market, études et recherches en marketing. Dunod, Paris.
Gartner, W. B. (1985). A conceptual framework for describing the phenomenon of new venture creation. Academy of Management Review, 10(4), 696–706. https://doi.org/10.5465/amr.1985.4279094
GEM. (2016/17). Russie. https://gsom.spbu.ru/files/docs/gem_russia_2016-2017.pdf
GEM. (2019/20). Russie. https://www.c4e.org.cy/reports/2019/gem-2019-2020-global-report.pdf
George, D., & Mallery, P. (2003). SPSS for Windows step by step: a simple guide and reference. Allyn & Bacon.
Grachev, I. (2001). Razvitie malogo predprinimatel’stva. Den’gi i kredit, 11, 69–81.
Gritsunova, S. V., & Lotareva, K. M. (2015). Razvitie malogo predprinimatel’stva v Rossii. Mir Nauki, 2, 105–117.
Hair, J., Black, B., Babin, B., Anderson, R., & Tatham, R. (2006). Multivariate data analysis. Upper Saddle River, Prentice-Hall.
Henderson, R., & Robertson, M. (1999). Who wants to be an entrepreneur? Young attitudes to entrepreneurship as a career. Education and Training, 41(5), 236–245. https://doi.org/10.1108/00400919910279973
Ivanov, М. А. (2007). Organizatsia kak vash instrument: Rossiiskii mentalitet i praktika biznesa. Akademia.
Kiggundu, M. N. (2002). Entrepreneurs and entrepreneurship in Africa: what is known and what needs to be done. Journal of Developmental Entrepreneurship, 7(3), 239–258.
Kisline, D. (2007). Petit entrepreneur russe: motivations, buts et innovations [PhD dissertation, Rennes University, France]. https://halshs.archives-ouvertes.fr/halshs-0026029
Kline, R. (2005). Principles and practice of structural equation modeling. Guilford.
Kouriloff, M. (2000). Exploring perceptions of a priori barriers to entrepreneurship: a multidisciplinary approach. Entrepreneurship Theory and Practice, 25(2), 59–79. https://doi.org/10.1177/104225870002500204
Kovalainen, A. (2007). Influencing attitudes and skills for entrepreneurship and SME growth. In J. Potter & A. Proto (Eds.), Promoting entrepreneurship in South East Europe: policies and tools. OECD.
Krylov, V. (2008). Culture et gestion en Russie: entre l’efficacite et l’incertitude. In E. Davel, J.-P. Dupuis, & J.-F. Chanlat (Eds.), Gestion en contexte interculturel: approches, problématiques, pratiques et plongées. Presses de l’Universite Laval et Teleuniversite UQAM, Quebec.
Krylova, Y. (2018). Administrative corruption and its effects on Russian Entrepreneurs: a regional aspect. Journal of Small Business & Entreprneurship, 30(2), 121–137. https://doi.org/10.1080/08276331.2017.1383764
Kuratko, D., Hornsby, J., & Naffizger, D. (1997). An examination of owner’s goals in sustaining entrepreneurship. Journal of Small Business Management, 35(1), 24–33.
Lane, D. (2002). Hopes and aspirations of young achievers on the young enterprise programme. In Working Paper 7 (Bristol Business School).
Li, W. (2007). Ethnic entrepreneurship: studying Chinese and Indian students in the United States. Journal of Developmental Entrepreneurship, 12(4), 449–466. https://doi.org/10.1142/S1084946707000769
Luthje, C., & Franke, N. (2004). Entrepreneurial intentions of business students: a benchmarking study. International Journal of Innovation and Technology Management, 1(3), 33–41.
McCarthy, D., Puffer, S., & Naumov, A. (1997). Partnering with Russia’s new entrepreneurs: Software Tsarina Olga Kirova. European Management Journal, 15(6), 269–288. https://doi.org/10.1016/S0263-2373(97)00048-0
Naba Boukari, M. (2019). Les facteurs cles de succes de l’entrepreneuriat des immigres au Niger: cas des salons de coiffure. Revue Congolaise de Gestion, 1(27), 129–157. https://doi.org/10.3917/rcg.027.0129
Naffziger, D. W., Hornsby, J. S., & Kuratko, D. F. (1994). A Proposed research model of entrepreneurial motivation. Entrepreneurship Theory and Practice, 18(3), 29–42. https://doi.org/10.1177/104225879401800303
Nazarova, K. (2019). Tchislo zakryvshihsia biznesov v dva raza prevysilo tchislo otkryvshyhsia. Economics. https://www.rbc.ru/economics/06/06/2019/5cf7bc9b9a79474f236c46a3
Nikulenko, T. G. (2007). Psihologiya menedjmenta. Phenix, Rostov na Dony.
Nunnally, J. C. (1978). Psychometric theory. MC Graw-Hill.
Polischuk, L. (2013). Institutional performance. In M. Alexeev & S. Weber (Eds.), The Oxford handbook of the Russian economy (pp. 189–220). OUP USA Oxford Handbooks in Economics. https://doi.org/10.1093/oxfordhb/9780199759927.013.0010
Puffer, S. M., McCarthy, D. J., & Boisot, M. (2010). Entrepreneurship in Russia and China: the impact of formal institutional voids. Entrepreneurship Theory and Practice, 34(3), 441–467. https://doi.org/10.1111/j.1540-6520.2009.00353.x
Quenelle, B. (2016). En Russie, la classe moyenne touchee par la crise economique. La Croix. http://www.la-croix.com/Economie/Monde/En-Russie-classe-moyenne-touchee-criseeconomique-2016-11-28-1200806293
Raizberg, B. A., Lozovskii, L. Sh., & Starodubtseva, E. B. (2003). Sovremennyi Ekonomicheskii Slovar. Moskva.
Robertson, M., Collins, A., Medeira, N., & Slater, J. (2003). Barriers to start-up and their effects on aspirant entrepreneurs. Education and Training, 45(6), 308–316. https://doi.org/10.1108/00400910310495950
Robichaud, Y., Cachon, J. C., & Haq, R. (2010). Motives, succes factors and barriers among Canadian females entrepreneurs: the case of Greater Sudbury. Entrepreneurial Practice Review, 1(2), 36–48.
Robichaud, Y., Mcgraw, E., Cachon, J. C., & Haq, R. (2013). L’influence des motivations entrepreneuriales sur la performance des PME. Journal of Small Business & Entrepreneurship, 26(4), 409–428. https://doi.org/10.1080/08276331.2013.822143
Robichaud, Y., Mcgraw, E., & Roger, A. (2001). Toward the development of a measuring instrument for entrepreneurial motivation. Journal of Developmental Entrepreneuriat, 6(2), 189–201.
Scheinberg, S., & Macmillan, I. C. (1988). An 11 country study of motivations to start a business. Babson College, Wellesley.
Shane, S. (2008). The illusions of entrepreneurship: the costly myths that entrepreneurs, investors and policy makers live. Yale University Press, CT.
Shane, S., & Venkataraman, S. (2000). The promise of entrepreneurship as a field of research. Academy of Management Review, 25(1), 217–226. https://doi.org/10.5465/amr.2000.2791611
Shane, S., Locke, E. A., & Collins, C. J. (2003). Entrepreneurial motivation. Human Resource Management Review, 13(12), 257–279. https://doi.org/10.1016/S1053-4822(03)00017-2
Stolyarenko, A. M. (2005). Psikhologiya menedzhmenta. Akademia.
Usunier, J. C., Easterby-Smith, M., & Thorpe, R. (2000). Introduction ą la recherche en gestion. Economica, Paris.
Vitkine, B. (2015). La Russie s’enfonce dans la récession. https://www.lemonde.fr/economie/article/2015/08/11/la-russie-s-enfonce-dans-la-recession_4720725_3234.html
Volchek, D., Jantunen, A., & Saarenketo, S. (2013). The institutional environment for international entrepreneurship in Russia: Reflections on growth decisions and performance in SMEs. Journal of International Entrepreneurship, 11(4), 320–350. https://doi.org/10.1007/s10843-013-0115-z
Worthington, R. I., & Whittaker, T. A. (2006). Scale development research: a content analysis and recommendations for best practices. The Counseling Psychologist, 34(3), 806–838. https://doi.org/10.1177/0011000006288127
Zotova, A., Mantulenko, V., Kraskova, N., Kislov, A., & Rowland, Z. (2016). New values as the basis for innovation. International Journal of Economic Perspectives, 10(3), 94–100.
Barba-Sanchez, V., & Atienza-Sahuquillo, C. (2012). Entrepreneurial behavior: impact of motivation factors on decision to create a new venture. Investigaciones Europeas de Dirección y Economķa de la Empresa, 18(2), 132–138. https://doi.org/10.1016/S1135-2523(12)70003-5
Benzing, C., Chu, H. M., & Kara, O. (2009). Entrepreneurs in Turkey: a factor analysis of motivations, success factors, and problems. Journal of Small Business Management, 47(1), 58–91. https://doi.org/10.1111/j.1540-627X.2008.00262.x
Blanchflower, D. G., & Oswald, A. J. (1998). What makes an entrepreneur? Journal of Labor Economics, 16(1), 26–60. https://doi.org/10.1086/209881
Blawatt, K. (1995). Defining the entrepreneurs: a conceptual model of entrepreneurship. In 12e colloque annuel du CCPME (Conseil canadien de la PME et de l’entrepreneuriat) (pp. 13–37). Thunder Bay, Ontario. Octobre.
Bornard, F., Verzat, C., & Gaujard, C. (2019). Un detour par l’imaginaire pour comprendre les fondements psychosociocognitifs de l’education entrepreneuriale. Revue de l’entrepreneuriat, 1(18), 109–140. https://doi.org/10.3917/entre.181.0109
Brown, T. A. (2006). Confirmatory factor analysis for applied research. Guilford Press.
Bruton, G. D., Ahlstrom, D., & Li, H. L. (2010). Institutional theory and entrepreneurship: where are we now and where do we need to move in the future? Entrepreneurship Theory and Practice, 34(3), 421–440. https://doi.org/10.1111/j.1540-6520.2010.00390.x
Chepurenko, A., & Iakovlev, A. (2013). Hrestomatia: teoria predprinimatel’stva. Rossijskij Jurnal menedjmenta, 11(2), 102–121.
Chu, H. M., Benzing, C., & Mcgee, C. (2007). Ghanaian and Kenyan entrepreneurs: a comparative analysis of their motivations, success, characteristics, and problems. Journal of Development Entrepreneurship, 12(3), 295–322. https://doi.org/10.1142/S1084946707000691
Cortina, J. M. (1993). What is coefficient alpha: an examination of theory and applications. Journal of Applied Psychology, 78(1), 98–104. https://doi.org/10.1037/0021-9010.78.1.98
Deci, E. L., & Ryan, R. M. (2008). Facilitating optimal motivation and psychological well-being across life’s domains. Canadian Psychology/Psychologie canadienne, 49(1), 14–23. https://doi.org/10.1037/0708-5591.49.1.14
Evrard, Y., Pras, B., & Roux, E. (2003). Market, études et recherches en marketing. Dunod, Paris.
Gartner, W. B. (1985). A conceptual framework for describing the phenomenon of new venture creation. Academy of Management Review, 10(4), 696–706. https://doi.org/10.5465/amr.1985.4279094
GEM. (2016/17). Russie. https://gsom.spbu.ru/files/docs/gem_russia_2016-2017.pdf
GEM. (2019/20). Russie. https://www.c4e.org.cy/reports/2019/gem-2019-2020-global-report.pdf
George, D., & Mallery, P. (2003). SPSS for Windows step by step: a simple guide and reference. Allyn & Bacon.
Grachev, I. (2001). Razvitie malogo predprinimatel’stva. Den’gi i kredit, 11, 69–81.
Gritsunova, S. V., & Lotareva, K. M. (2015). Razvitie malogo predprinimatel’stva v Rossii. Mir Nauki, 2, 105–117.
Hair, J., Black, B., Babin, B., Anderson, R., & Tatham, R. (2006). Multivariate data analysis. Upper Saddle River, Prentice-Hall.
Henderson, R., & Robertson, M. (1999). Who wants to be an entrepreneur? Young attitudes to entrepreneurship as a career. Education and Training, 41(5), 236–245. https://doi.org/10.1108/00400919910279973
Ivanov, М. А. (2007). Organizatsia kak vash instrument: Rossiiskii mentalitet i praktika biznesa. Akademia.
Kiggundu, M. N. (2002). Entrepreneurs and entrepreneurship in Africa: what is known and what needs to be done. Journal of Developmental Entrepreneurship, 7(3), 239–258.
Kisline, D. (2007). Petit entrepreneur russe: motivations, buts et innovations [PhD dissertation, Rennes University, France]. https://halshs.archives-ouvertes.fr/halshs-0026029
Kline, R. (2005). Principles and practice of structural equation modeling. Guilford.
Kouriloff, M. (2000). Exploring perceptions of a priori barriers to entrepreneurship: a multidisciplinary approach. Entrepreneurship Theory and Practice, 25(2), 59–79. https://doi.org/10.1177/104225870002500204
Kovalainen, A. (2007). Influencing attitudes and skills for entrepreneurship and SME growth. In J. Potter & A. Proto (Eds.), Promoting entrepreneurship in South East Europe: policies and tools. OECD.
Krylov, V. (2008). Culture et gestion en Russie: entre l’efficacite et l’incertitude. In E. Davel, J.-P. Dupuis, & J.-F. Chanlat (Eds.), Gestion en contexte interculturel: approches, problématiques, pratiques et plongées. Presses de l’Universite Laval et Teleuniversite UQAM, Quebec.
Krylova, Y. (2018). Administrative corruption and its effects on Russian Entrepreneurs: a regional aspect. Journal of Small Business & Entreprneurship, 30(2), 121–137. https://doi.org/10.1080/08276331.2017.1383764
Kuratko, D., Hornsby, J., & Naffizger, D. (1997). An examination of owner’s goals in sustaining entrepreneurship. Journal of Small Business Management, 35(1), 24–33.
Lane, D. (2002). Hopes and aspirations of young achievers on the young enterprise programme. In Working Paper 7 (Bristol Business School).
Li, W. (2007). Ethnic entrepreneurship: studying Chinese and Indian students in the United States. Journal of Developmental Entrepreneurship, 12(4), 449–466. https://doi.org/10.1142/S1084946707000769
Luthje, C., & Franke, N. (2004). Entrepreneurial intentions of business students: a benchmarking study. International Journal of Innovation and Technology Management, 1(3), 33–41.
McCarthy, D., Puffer, S., & Naumov, A. (1997). Partnering with Russia’s new entrepreneurs: Software Tsarina Olga Kirova. European Management Journal, 15(6), 269–288. https://doi.org/10.1016/S0263-2373(97)00048-0
Naba Boukari, M. (2019). Les facteurs cles de succes de l’entrepreneuriat des immigres au Niger: cas des salons de coiffure. Revue Congolaise de Gestion, 1(27), 129–157. https://doi.org/10.3917/rcg.027.0129
Naffziger, D. W., Hornsby, J. S., & Kuratko, D. F. (1994). A Proposed research model of entrepreneurial motivation. Entrepreneurship Theory and Practice, 18(3), 29–42. https://doi.org/10.1177/104225879401800303
Nazarova, K. (2019). Tchislo zakryvshihsia biznesov v dva raza prevysilo tchislo otkryvshyhsia. Economics. https://www.rbc.ru/economics/06/06/2019/5cf7bc9b9a79474f236c46a3
Nikulenko, T. G. (2007). Psihologiya menedjmenta. Phenix, Rostov na Dony.
Nunnally, J. C. (1978). Psychometric theory. MC Graw-Hill.
Polischuk, L. (2013). Institutional performance. In M. Alexeev & S. Weber (Eds.), The Oxford handbook of the Russian economy (pp. 189–220). OUP USA Oxford Handbooks in Economics. https://doi.org/10.1093/oxfordhb/9780199759927.013.0010
Puffer, S. M., McCarthy, D. J., & Boisot, M. (2010). Entrepreneurship in Russia and China: the impact of formal institutional voids. Entrepreneurship Theory and Practice, 34(3), 441–467. https://doi.org/10.1111/j.1540-6520.2009.00353.x
Quenelle, B. (2016). En Russie, la classe moyenne touchee par la crise economique. La Croix. http://www.la-croix.com/Economie/Monde/En-Russie-classe-moyenne-touchee-criseeconomique-2016-11-28-1200806293
Raizberg, B. A., Lozovskii, L. Sh., & Starodubtseva, E. B. (2003). Sovremennyi Ekonomicheskii Slovar. Moskva.
Robertson, M., Collins, A., Medeira, N., & Slater, J. (2003). Barriers to start-up and their effects on aspirant entrepreneurs. Education and Training, 45(6), 308–316. https://doi.org/10.1108/00400910310495950
Robichaud, Y., Cachon, J. C., & Haq, R. (2010). Motives, succes factors and barriers among Canadian females entrepreneurs: the case of Greater Sudbury. Entrepreneurial Practice Review, 1(2), 36–48.
Robichaud, Y., Mcgraw, E., Cachon, J. C., & Haq, R. (2013). L’influence des motivations entrepreneuriales sur la performance des PME. Journal of Small Business & Entrepreneurship, 26(4), 409–428. https://doi.org/10.1080/08276331.2013.822143
Robichaud, Y., Mcgraw, E., & Roger, A. (2001). Toward the development of a measuring instrument for entrepreneurial motivation. Journal of Developmental Entrepreneuriat, 6(2), 189–201.
Scheinberg, S., & Macmillan, I. C. (1988). An 11 country study of motivations to start a business. Babson College, Wellesley.
Shane, S. (2008). The illusions of entrepreneurship: the costly myths that entrepreneurs, investors and policy makers live. Yale University Press, CT.
Shane, S., & Venkataraman, S. (2000). The promise of entrepreneurship as a field of research. Academy of Management Review, 25(1), 217–226. https://doi.org/10.5465/amr.2000.2791611
Shane, S., Locke, E. A., & Collins, C. J. (2003). Entrepreneurial motivation. Human Resource Management Review, 13(12), 257–279. https://doi.org/10.1016/S1053-4822(03)00017-2
Stolyarenko, A. M. (2005). Psikhologiya menedzhmenta. Akademia.
Usunier, J. C., Easterby-Smith, M., & Thorpe, R. (2000). Introduction ą la recherche en gestion. Economica, Paris.
Vitkine, B. (2015). La Russie s’enfonce dans la récession. https://www.lemonde.fr/economie/article/2015/08/11/la-russie-s-enfonce-dans-la-recession_4720725_3234.html
Volchek, D., Jantunen, A., & Saarenketo, S. (2013). The institutional environment for international entrepreneurship in Russia: Reflections on growth decisions and performance in SMEs. Journal of International Entrepreneurship, 11(4), 320–350. https://doi.org/10.1007/s10843-013-0115-z
Worthington, R. I., & Whittaker, T. A. (2006). Scale development research: a content analysis and recommendations for best practices. The Counseling Psychologist, 34(3), 806–838. https://doi.org/10.1177/0011000006288127
Zotova, A., Mantulenko, V., Kraskova, N., Kislov, A., & Rowland, Z. (2016). New values as the basis for innovation. International Journal of Economic Perspectives, 10(3), 94–100.