1. Alyona Albutova Artyom Gudov Nikita Kiselev Elena Konobeeva Ekaterina Murzacheva March, Moscow, 2011

2. Actuality of investigation That’s why it’s important to know: What are the expectations of early entrepreneurs about financial aspect? What is the influence of the adverse social and economic conditions on their intentions? Who is ready to support small-scale businesses materially and under what terms? Fine-tuned financial system The development of small-scale business activity Economic growth

3. Our aim and tasks Objective: to investigate the influence of global economic slowdown on the structure, nature, and motivation of investments in the early entrepreneurship area for two patterns of the economies: developed one (the Netherlands) and developing one (Russia) Tasks: To define the characteristics of the demand for financial funds among early entrepreneurs in Russia and the Netherlands depending on the time period (2006-2007 – period before crisis; 2008 –crisis; 2009 – after crisis); To explore the informal investment activity and its motivation during the distinguished time periods; To find out business areas which have especial attractiveness for informal investments.

4. Our hypotheses H1: The deficit for financial resources is higher in Russia than in the Netherlands (the demand side). It is a pro-cyclical characteristic; H2: The lack of financial funds can be compensated by informal investments in Russia (due to the immature financial system) and mitigated by government initiatives in the Netherlands (due to the societal orientation of the economy); H3: Immaterial low value-added services are the most attractive business area for informal investments in Russia in opposite to high-tech activities in the Netherlands

5. Why? or the main factors that influence the investment process in early businesses these are: Number of participants involved (as the criteria of business reliability) (variable SUOWNERS). Profitability of the business invested in (variable SUWAGE). Guarantee of profit (variable SUWAGEYR). TYPE of business in need for investment (as a criteria of any preference in investment) (variable SUBUSTYP). Novelty of product/service (variable SUNEWCST). Number of competitors (variable SUCOMPET) Market opportunities (variable SUEXPORT). Amount of money required (variable SUMONTOT) * Guarantee of payback ( year 2006) (variable supaybck) *Recoupment (year 2006-2007) (variable supayoff)

6. Other variables in our future analysis How? Or measure the general amount of investment Amount of investment (variable BAFUND). TYPE of relations with investor (variable BAREL). Depending on the year of research here also can go: type of business (2006) recoupment (2006) amount of recoupment (2006-2008) Who is financing? What is your gender? (GENDER) I am now going to read a list of age ranges. Would you be willing to indicate the range that best describes your age? (AGE7C) Which of the following best describes your main employment status? (OCCU) How many members make up your permanent household, including you?

7. We are glad to answer your questions…