Government and entrepreneurship in transition economies: the case of small firms in business services in Ukraine

Abstract

Governments play a particularly important role for entrepreneurship development in a transition context, particularly with respect to their role in creating the institutional framework that enables and/or constrains entrepreneurship. This article explores how institutional change in Ukraine, resulting in institutional deficiencies, triggered new opportunities for small firms in the emerging business services sector. Drawing on data from a survey and in-depth case studies, the article illustrates the distinctive, albeit transient, nature of opportunities for business services firms in a turbulent environment, where government has yet to fully implement an effective institutional framework for productive entrepreneurship.

Keywords:

• business service entrepreneurship
• institutions
• transition economy
• Ukraine