Human and Social Capital as Factors of Entrepreneurial Success in Russian Conditions

Abstract

Subject. The article investigates the role of human and social capital as success factors of Russian entrepreneurs. Objectives. The focus is on the estimation of the impact of human, social, and religious capital on the choice of entrepreneurial career and its results in Russian conditions. Methods. The study employs regression analysis of the Russian Longitudinal monitoring survey data to review factors determining the choice of business activities, the level of income and work and life satisfaction of Russian entrepreneurs. The Heckman model is used to consider the effect of self-selection into the group of entrepreneurs. Results. Entrepreneurial career provides both an increased personal income and higher level of work satisfaction, despite a higher workload. Higher education and high activity in social networks, indicating developed communication skills and readiness to use new opportunities provided by modern technologies, increase the likelihood of becoming an entrepreneur. Russian religious believers are more actively engaged in entrepreneurship compared to agnostics and atheists, and gain increased entrepreneurial income. Conclusions. Individuals who tend to trust others are more likely to become entrepreneurs, and a necessary condition for obtaining high entrepreneurial income is the formation of a team that can be trusted. Since Russia is characterized by a significantly lower level of trust in people compared to most economically developed countries, this fact limits the level of entrepreneurial activity.