ABSTRACT

Collecting initial capital is possible in many ways, and small trade, as exemplified by Margarita, has been one of the most common methods among small private entrepreneurs. However, many small entrepreneurs started in the same way as Margarita, without any transfers from Soviet enterprises. Trade and shopkeeping were new economic branches in Russia, in which the market economy really brought a boost even in the smallest municipalities. Family strategies usually involve running several different businesses at the same time and overstaffing to allow some workers to undertake household duties in addition to the business. Business owners look for solutions that do not catch the attention or interest of larger firms, and newcomers try to enter branches which are outside the traditional hierarchical structures. This opens up an opportunity for independent development based on non-hierarchical decision-making. Local budgets are limited and sponsors and entrepreneurs are expected to participate in funding local events and investment needs.