THE SOCIAL EMBEDDEDNESS OF SMALL-SCALE ENTREPRENEURSHIP
The book analyses the social embeddedness of economic action on the example of small entrepreneurship in Bulgaria in the post-socialist period from 1998 to 2008. The role of the small-scale entrepreneurs and their power in the market fields are assumed to substantially differ from that of the large businesses. The major objects of research are the small-scale owners of enterprises and the self-employed. The analysis is empirically based upon nine qualitative and quantitative sociological research studies.
The research focuses on how the social structures of markets shape the entrepreneurial action which is interpreted in terms of its rationality, motivation and ethics. The social structures of markets are conceptualised through the social relations, belief systems and economic institutions. They create the social context of socio-structural (network), cultural and institutional embeddedness respectively as different forms of the entrepreneurial action’s social embeddedness. Theoretically, the major research thesis draws on the assumption that these three forms are tightly intertwined. Entrepreneurial action cannot be understood if – in accordance with the traditional treatment – it is considered as merely structurally, culturally, or institutionally embedded. Hence, an integrated theoretical approach is developed as a synergy from network, culturalist and new institutionalist approaches in contemporary economic sociology.
Empirically, this approach is verified by studying: (1) the social relations of the small entrepreneurs in Bulgaria with their employees, competitors, suppliers, clients and official authorities; (2) the culturally determined cognitive frames which guide those relations, and make the agreements between actors possible; (3) the institution of contract between the market participants which is understood as a totality of institutionalised conventions and practices. The main research thesis is that there is no single legitimate model of entrepreneurial action (as related to its rationality, motivation and ethics) in Bulgaria. Depending on the levels and specificity of the multiple social embeddedness one can find in the post-socialist capitalism mixed patterns of entrepreneurial action as socially legitimate modes. They vary between profit and consumption maximisation, profit- and rent-seeking, opportunity and necessity entrepreneurship. Duality is the typical feature of the post-socialist small-scale entrepreneurship.
Contents
Acknowledgements / 13
INTRODUCTION / 17
Chapter 1
ENTREPRENEURIAL ACTION AND SOCIAL STRUCTURES OF MARKETS / 47
1. Entrepreneurship in the Capitalist Economy / 47
2. Markets as Social Structures / 72
Chapter 2
THE SOCIAL EMBEDDEDNESS OF ECONOMIC ACTION / 83
1. The Concept ‘Social Embeddedness’ of Economic Action / 83
2. Forms of Social Embeddedness of Economic Action / 89
3. The Theoretical Synthesis: Towards a ‘Disciplined Eclectism’ / 119
Chapter 3
INSTITUTIONALISATION OF MARKET ORDER IN BULGARIA: THE DUAL CAPITALISM / 124
1. On Consolidation of Capitalism in Post-socialist Context / 124
2. The Problematic Institutionalisation of Public Market Order / 129
3. The Effects: Economic Life as Duality of Legality and Illegality / 144
4. ‘Both is and is not’: The Dual Capitalism or the Inherent Contradiction of Private Ordering in the Markets / 154
Chapter 4
SMALL ENTREPRENEURSHIP IN BULGARIA: SPECIFICITY AND TYPOLOGY / 160
1. Studying Small-scale Entrepreneurship: Theoretical and Empirical
Details / 160
2. The Social Context of Small-scale Entrepreneurship / 168
3. Small Businesses in the Context of SMEs in Bulgaria / 179
4. The Registered Small-scale Entrepreneurs: Profile and Typology / 199
5. Informal Self-employment / 222
6. Concluding Remarks / 232
Chapter 5
CULTURAL EMBEDDEDNESS / 238
1. The Theoretical Model / 239
2. Quantitative Dimensions / 243
3. Qualitative Dimensions / 255
4. Trends of Change / 277
5. Concluding Remarks / 289
Chapter 6
INSTITUTIONAL EMBEDDEDNESS / 292
1. Attitudes Towards Public Market Order / 292
2. Private Ordering in the Markets / 308
3. Concluding Remarks / 332
Chapter 7
NETWORK EMBEDDEDNESS / 336
1. Registered Small-scale Entrepreneurs / 337
2. Informally Self-employed Workers: Social Networks vs. Market
Anonymity / 373
3. Concluding Remarks / 378
CONCLUSION: ON MULTIPLE SOCIAL EMBEDDEDNESS / 382
REFERENCES / 398
APPENDIX / 431
Index / 441
Synopsis / 447
Книгата анализира социалната вграденост на икономическото действие върху примера на дребното предприемачество в България (1998-2008). Анализът се основава на девет количествени и качествени социологически проучвания. Изследването се фокусира върху начина, по който социалните структури на пазарите формират рационалността, мотивацията и етиката на предприемаческото действие. Социалните структури на пазара са концептуализирани чрез социалните отношения, системите от вярвания и икономическите институции, които създават социалния контекст на мрежовата, културната и институционалната вграденост на действието. Развива се интегриран теоретичен подход като синергия между мрежовия, културалисткия и новия институционалистки подходи в съвременната икономическа социология. Според централната изследователска теза отсъства един единствен легитимен модел на предприемаческо действие в България. В зависимост от нивата и специфичността на множествената социална вграденост, в постсоциалистическия капитализъм могат да се открият смесени модели на предприемаческо действие, които са социално легитимни. Те варират между максимизация на печалбата и потреблението, търсенето на печалба и рента, предприемачеството като възможност и необходимост. Двойствеността се извежда като типична характеристика на постсоциалистическото дребно предприемачество.