Entrepreneurship in Post-Socialist Economies

Russell Sobel at WVU has an interesting working paper about entrepreneurship in post-socialist countries. The results should come as no surprise.

The results clearly point to several key factors associated with high rates of entrepreneurial activity in postsocialist
transition economies. These include credit availability, contract enforcement, low government corruption, sound monetary policy, high foreign direct investment, and policies (such as low regulations and taxes) that are consistent with giving citizens a high degree of economic freedom. It is found, however, that credit availability and government corruption tend to be more important factors affecting the creation rate of new smaller firms than for the creation rate of new larger firms.

Wealth creation is a natural act for a society. The countries lacking it don't need us to give them money. We shouldn't have to feed their poor for decades on end. They can do it themselves if we just help them unleash the wealth creation power of captialism.

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