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THE NEW ENTREPRENEURS OF EUROPE AND ASIA This page intentionally left blank THE NEW ENTREPRENEURS OF EUROPE AND ASIA Patterns of Business Development in Russia, Eastern Europe and China Victoria E. Bonnell and Thomas B. Gold M.E. Sharpe Armonk, New York London, England Copyright © 2002 by M. E. Sharpe, Inc. All rights reserved. No part of this book may be reproduced in any form without written permission from the publisher, M. E. Sharpe, Inc., 80 Business Park Drive, Armonk, New York 10504. Library of Congress Cataloging-in-Publication Data New entrepreneurs of Europe and Asia : patterns of business development in Russia, Eastern Europe, and China / [edited] by Victoria E. Bonnell and Thomas B. Gold. p. cm. Includes bibliographical references and index. ISBN 0-7656-0775-1 (alk. paper); ISBN 0-7656-0776-x (pbk alk.) 1. Entrepreneurship—Russia (Federation)—Congresses. 2. Entrepreneurship— Europe, Eastern—Congresses. 3. Entrepreneurship—China—Congress. I. Bonnell, Victoria E. II. Gold, Thomas B. HB615.E458 2001 338’.04’094—dc21 2001032825 Printed in the United States of America The paper used in this publication meets the minimum requirements of American National Standard for Information Sciences Permanence of Paper for Printed Library Materials, ANSI Z 39.48-1984. ~ BM (c) 10 BM (p) 10 9 9 8 8 7 7 6 6 5 5 4 4 3 3 2 2 1 1 Contents About the Editors and Contributors Acknowledgments vii xi Introduction Victoria E. Bonnell and Thomas B. Gold xiii Part One. Profiles of Entrepreneurs 1. Joining the Winners: Self-Employment and Stratification in Post-Soviet Russia Theodore P. Gerber 3 2. The Worm and the Caterpillar: The Small Private Sector in the Czech Republic, Hungary, and Slovakia Ákos Róna-Tas 39 3. The Yu Zuomin Phenomenon: Entrepreneurs and Politics in Rural China Bruce Gilley 66 4. Security and Enforcement as Private Business: The Conversion of Russia’s Power Ministries and Its Institutional Consequences Vadim Volkov 83 5. The Construction of a Professional Field: Resources, Skills, and Attributes of Founders of the Market Research Sector in Poland, 1989 to 1997 El¿bieta W. Benson 104 6. Entrepreneurs and Democratization in China’s Foreign Sector Margaret M. Pearson 130 v vi Part Two. Patterns of Entrepreneurialism 7. Entrepreneurial Action in the State Sector: The Economic Decisions of Chinese Managers Doug Guthrie 159 8. Entrepreneurial Strategies and the Structure of Transaction Costs in Russian Business Vadim Radaev 191 9. The Embedded Politics of Entrepreneurship and Network Restructuring in East-Central Europe Gerald A. McDermott 214 10. Social Capital and Entrepreneurial Success: Hungarian Small Enterprises Between 1993 and 1996 György Lengyel 256 11. Entrepreneurial Governmentality in Postsocialist Russia: A Cultural Investigation of Business Practices Alexei Yurchak 278 12. Marketing Civility, Civilizing the Market: Chinese Multilevel Marketing’s Challenge to the State Lyn Jeffery 325 Index 347 About the Editors and Contributors El¿bieta W. Benson is a doctoral candidate in the department of sociology at the University of California, Berkeley. She is currently completing a dissertation on the emergence of a market for business information in contemporary Poland. Victoria E. Bonnell is director of the Institute of Slavic, East European, and Eurasian Studies and professor of sociology at the University of California, Berkeley. Her recent books include Russia in the New Century: S