Ethno-cultural clusters and informal entrepreneurship in Russia

Purpose - – This article aims to explore informal entrepreneurial activities in ethno-cultural clusters in the Russian South. It evaluates the agglomeration economy efforts of ethno-cultural communities and the formation of a new operations of the informal sector. The transition of the ethnic project “Obukhovsky Choir” from an informal to a formal enterprise is considered as unfinished. The emphasis is pointed at the barriers affecting the process and extra-economic factors influencing entrepreneurship activities in ethno-cultural clusters in Russia. Design/methodology/approach - – For investigation of the informal entrepreneurship in the Southern Russian agglomeration, in-depth interviews method has been used. The paper researched concept of entrepreneurship and cultural entrepreneurship through the interviews, trying to distinguish the core factors influencing activities of Obukhovsky Choir. These questions concern motivation to enter entrepreneurship activity, regional and local policies affecting the overall situation, core values (ideology) of these types of activity, the role of institutional and other contexts, spatial distribution and social capital influence. Findings - – The case of the Rostov agglomeration demonstrates the delayed development of ethno-cultural clusters and attempts to closure activities of communities into local political space. Rostov agglomeration has not stepped through the threshold and involved ethno-cultural communities in the formation of the “common good” conception. While Rostov agglomeration is still attractive for labour migration and migrants' entrepreneurial initiatives, local government does not support such intervention into the stable regional market. These steps delay the development of ethno-cultural clusters and contradict communication between ethnic communities, autochthonic population and local administration. Originality/value - – The case chosen for analysis is Cossack music entrepreneurial space as a salient sample of ethno-cultural cluster with powerful economic potential. It could be used for further consideration of ethno-cultural cluster as a source for socio-economic modernization of Russian multicultural agglomeration where established ethnic communities' communicative style strategically provides support or opposition to the local administration initiatives.