Empirical Study of Microbusiness of Local Social Environment in Crisis: Russia

Abstract

In developing countries, microenterprises comprise the vast majority of the small business sector – a result of the relative lack of formal sector jobs available for the poor. These microentrepreneurs operate microenterprises not by choice, but out of necessity. The article gives the results of a statistically significant study of microbusiness in Balakovo city. Quality and reliability of study results evaluated both by traditional statistical methods and by the Rasch model. Microbusiness can not provide jobs downsized employees with large companies, however, the growth in demand will lead to a moderate degree of coupling (0,59) to increase staff in microenterprises. The bulk of today's entrepreneurs in Russia have acquired this status in 1998-2000, i.e. during and after the ‘August 1998’ crisis. A modification of the sociological tools to measure the micro business is offered.

Keywords: Economic Crisis, Micro-Enterprise, Microbusiness, Rasch Model, Reduction, Russia