The Dynamics of Economic Processes at the Micro Level and the Problem of Social Inequality in the BRICS Countries

Abstract

Maintaining balance between the steady economic growth and even distribution of wealth in society is vital for preserving the sustainability of economic development. This article presents conditions and the scale of inequalities in five emerging economies: Brazil, Russia, India, China and South Africa. Moreover, it contains the analysis of the state of entrepreneurship in these countries based on selected indicators elaborated by international institutions. The main goal of the article was to stress the potential entrepreneurship development and the associated opportunities to reduce socio-economic inequalities. Due to the complexity of research there have been used dif-ferent research methods, including i.e.: descriptive statistical analysis, nonreactive test methods and content analysis. Entrepreneurship in the emerging economy is often the only chance to take any job and to improve the living conditions of society, when considering the rigidity in the labor market. The analysis of data allows to conclude that also the BRICS countries may benefit from the development of entrepreneurship. As the research carried out by international institutions shows, the development of entrepreneurship in those countries is limited by the institutional factors. Thus, im-proving the institutional environment, largely within the responsibility of the state, may contribute to the growth of the enterprises sector and allow to build globally recognized firms. This, in turn, may strengthen the competitiveness of the economy and encourage its greater internationalization. The entrepreneurship development should therefore be supported by the state and its institutions, and must be accompanied by initiatives taken by the entrepreneurs and the development of family businesses, as it was in case of economies like Vietnam and South Korea. It drives the steady economic growth and contributes to reduction of several problems related to the uneven distribution of wealth in society.