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.