Comparative Entrepreneurial Cognitions and Lagging Russian New Venture Formation: A Tale of Two Countries*

Changes in Russian government and economic systems over the last 15 years led to expectations of increased entrepreneurial activity. Yet potential entrepreneurs are deciding to venture at a much lower rate than anticipated. New venture creation in Russia is occurring at a rate that is considerably lower than that of the United States and Western Europe. This research examines cognitive similarities and differences among Russian and U.S. entrepreneurs and nonentrepreneurs to find a possible explanation. Multivariate analysis of variance and multiple discriminant analysis results found similarities between U.S. and Russian experts and U.S. and Russian novices with respect to arrangements, willingness, and ability scripts, but differences in these scripts were found between experts and novices, particularly in Russia. Implications for entrepreneurship cognition research and public policy are discussed.