How was the development of entrepreneurship in Russia

The development of entrepreneurship in Russia began from the period 1864 - 1917, when, regardless of the ruling government and their decrees, an increasing number of factories and manufactories were opened, where millions of people worked. It was during this period that the outflow of rural residents from villages to the city took place. During this period, quantitative rather than qualitative development took place. The number of enterprises that used outdated, inefficient methods in their work, but thanks to the continuous form of work, they still had considerable profit, was increasing.

By the middle of the 20th century, it became obvious that the development of entrepreneurship in Russia, at that time still the USSR, was completely in the power of the state. Unlike England, the Soviet, and then the Russian, government tried to take the reins of government of small and medium-sized businesses into their own hands. Such excessive control led to the organization of large companies - monopolists, which did not give a chance to life for small private firms. With the transition at the end of the 20th century to a market economy system, the development of entrepreneurship in Russia received formal freedom. Since that time, the state has ceased to intervene in the conduct of private business, which has not greatly facilitated the situation. In order for the development of entrepreneurship in Russia to proceed as efficiently as possible, it was necessary to create conditions under which there would be healthy competition, there were no excessive taxes, and a legislative base was formed.

It is worth noting that, unlike large business, the development of individual Entrepreneurship in Russia has a long history. Its beginning can be traced back to the time merchants appeared. In fact, they were the first individual entrepreneurs. They became famous all over the world, having made such cities as Novgorod, Pskov, Kiev and other centers of trade and craft. Active economic activity of merchants led to the fact that these cities could compete with the capital in their wealth.

The abolition of serfdom was the beginning of individual entrepreneurship in the field of agriculture, when peasants began to sell their own products at fairs. By the beginning of the 20th century, private entrepreneurs received a certain bonus in the form of fixing prices for products and assistance from the state. In fact, at that time private trade controlled retail, and wholesales were subordinate to the state apparatus. NEP became a harbinger of communist times, when the development of entrepreneurship in Russia stopped for several decades. It is interesting that the communist system not only supplanted this layer of the economy, but also inspired the idea that organizing your business and living better than the rest is embarrassing and not Soviet. This pushed Russia away in terms of economic development relative to Europe or America several decades ago, and therefore, when various forms of joint business were allowed in the early 90s of the last century, the people simply turned out not to be ready for this either morally or financially.

The realization that it was not a shame to stand out among the rest and live better at the expense of one's own entrepreneurship began to come to the Russians quite recently. Today, many people have a desire to work for themselves, build their own business, but the lack of formation of the institution of small and medium-sized enterprises ruins positive initiatives right in the bud. Attempts to cultivate the seeds of Western experience on Russian soil often end in failure, because Russia is too distinctive and its features not only need to be taken into account, but rely on them, creating a specific program of action.

Source: https://habr.com/ru/post/C32958/


All Articles