From Good Communists to Even Better Capitalists? Entrepreneurial Pathways in Post-Socialist Romania

This article tests four theses regarding the origins of Romanian post-socialist entrepreneurs: (1) “political capitalism,” (2) “post-socialist managerialism,” (3) “capitalism from below,” and (4) “refuge from poverty.” The results of the analyses show that the former cadres are at an advantage in being employers due to their organizational experience and network resources. Nevertheless, in line with arguments advanced by the second thesis mentioned above, education, as the most basic form of human capital, plays an important role in this story of entrepreneurship. Consistent with the predictions of the third thesis, the experience in the second economy under state socialism, as a form of cultural capital, represents an asset for being an employer and a small business operator in 2000. Private farming is an avenue taken by former socialist farmers and by some of those who have lost their jobs after 1990, especially the former peasant-workers of state socialism.