The paper considers microeconomic and institutional reasons for unsuccessful development of market reforms in Russia and other former socialist countries. The experience of post socialistic countries is compared to the character and history of development of small and middle business in the USA and other European and Asian countries. Factors influencing development of business in conditions of reformed economics are discussed. On the basis of comparative analysis of the pre-reform institutional structures and economic policy, some recommendations for support of business in countries with transitive economy are formulated.
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