Handbook of Research on Entrepreneurship Policies in Central and Eastern Europe
Show Less

Handbook of Research on Entrepreneurship Policies in Central and Eastern Europe

Edited by Friederike Welter and David Smallbone

This unique Handbook explores the role of government in the development of entrepreneurship in countries where twenty years ago private enterprise was illegal or barely tolerated.
Buy Book in Print
Show Summary Details
You do not have access to this content

Chapter 5: Mentalities and Mindsets: The Difficulties of Entrepreneurship Policies in the Latvian Context

Arnis Sauka and Friederike Welter


Arnis Sauka and Friederike Welter INTRODUCTION Along with the economic and political processes prior to the collapse of the Soviet Union, entrepreneurship development in Latvia as well as other countries of Central and Eastern Europe started 20 years ago. This process of change from a centrally planned to market-oriented system is often referred to as ‘transition’ in entrepreneurship literature (Smallbone and Welter 2001). The fundamental transformation of the role of the state, along with the development of a suitable political structure and institutional change, in particular with regard to a framework shaping economic, financial and legal institutions underpinning the market economy, had to be achieved first in each and every country of Central and Eastern Europe (EBRD 1995). North (1990) refers to this framework, generally enforced by governments and relatively easily adaptable to the changing economic circumstances, as formal institutions. Due to the total collapse of the former system, the introduction of new formal institutions was not an easy task to carry out. In this context, ‘framework uncertainty’1 shaping the environment in the countries of transition is often mentioned amongst the major constraints in entrepreneurship literature (Van de Mortel 2002). As emphasized by North (1990), along with the development of formal institutions, informal institutions, for example invisible ‘rules of the game’, made up of norms, values, acceptable behaviour and codes of conduct in a society, also have to change while a country progresses towards a market economy. Such informal rules often evolve either to substitute or to complement formal rules...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information

or login to access all content.