How entrepreneurship could be promoted after the collapse of a socialist economic system

► We study postcommunist countries to suggest which policy sets that make most sense for the promotion of micro-enterprises. ► An early, comprehensive and radical reform is the superior approach for the promotion of entrepreneurship. ► A certain room for small enterprises can be created even in a very corrupt economy dominated by severe rent seeking. ► The Russian deregulation of 2002 represents the worst of all worlds, because all its elements were incremental and therefore vulnerable.