However, results from two waves of the Global Entrepreneurship Monitor (GEM), conducted in May-June 2019 and June-July 2021 demonstrate that notwithstanding the Coronacrisis, political unrest, and worsening business climate, the Belarusian economy experienced an influx of entrepreneurs (not necessarily officially registered as a firm or sole proprietor). In the same vein, the period of economic growth brought new entrepreneurs to the market to pursue business opportunities. (2015), these circumstances suggest the presence of a procyclical trend in the entrepreneurship development in the country. Stagnating demand also led to deteriorating business opportunities that in turn incited a decrease in the number of both nascent and matured entrepreneurs. This has for instance manifested itself in private sector firms being swifter in decreasing or increasing the size of the work force in recessions or recoveries (IMF, 2019). During these periods, Belarusian private enterprises responded faster to both negative and positive trends in the economy compared to state-owned firms. Crises and Entrepreneurial Activity in Belarusĭuring the past 15 years, the Belarusian economy and, in particular, Belarusian entrepreneurs have experienced several crises of different scopes, nature, and origins (in 2009, 2011, 2015-2016, 2020). However, such businesses may fail to deliver a positive long-term impact on the economy, while the detrimental consequences of the war in Ukraine undermine the potential and sustainability of growth-driving businesses with international and innovative orientation.
The readiness and willingness of Belarusians to become entrepreneurs in a harsh business environment could be considered a good sign for the economy and society. Author: Svante Stromberg Will Entrepreneurs Be Able to Reactivate the Belarusian Economy?īased on data from two recent waves of the Global Entrepreneurship Monitor (GEM), we demonstrate that the Coronacrisis gave birth to many new necessity-driven entrepreneurs who will likely alleviate the current challenges of unemployment and income losses in the short- and medium-term.
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