In the Balkans, investors operate within a devil’s circle

Promoting entrepreneurship is often viewed as a key component for generating growth in the transition economies of eastern Europe. Tim Vorley and Nick Williams write that tackling corruption has an important role in this process. Drawing on recent research in Bulgaria and Romania, they assess the challenges posed by corruption for entrepreneurs in the region, noting that the issue must be understood and tackled effectively if entrepreneurship is to have a positive and productive impact on national economies. Currently, investors cannot break out of a ‘devil’s circle’ in which they are forced to engage in corrupt practices themselves, if they are to get anything done.