AI Implementation by Small Entrepreneurs in Russia: Flowers Grow also on Stones

Central European Business Review. 2026. Vol. 15. No. 2. P. 69–90.

Dormidontova Y.

This study examines the individual factors of artificial intelligence (AI) implementation by small and medium-sized enterprise (SME) owners, based on a survey of 499 respondents in Russia. Drawing on Innovation Diffusion Theory, the Technology Acceptance Model (TAM), and stakeholder-oriented sustainability approach, the analysis shows that SME owners who already use AI for private purposes are more likely to implement it in their businesses. Owners who see AI as potentially damaging to their businesses are also more likely to adopt it. Those who believe AI will harm the economy overall are less likely to use it. Younger entrepreneurs are more inclined to adopt AI. Education is not significant. Owners of larger SMEs and those in urban areas are more likely to adopt it. The findings challenge TAM based evidence regarding the role of hedonic motivation: in this post-transitional economy, expected damage to one’s own business emerges as a key driver of AI implementation by SMEs. Implications for Central Eastern European audience: As AI penetration grows in CEE, SME owners with personal AI experience should be more likely to implement AI in business, with younger entrepreneurs expected to lead adoption, similar to Russia. However, unlike Russia, urban-rural differences in CEE may be less pronounced due to a closer distances between cities and rural areas, potentially diminishing the role of settlement in AI adoption. Policies emphasizing practical, experiential learning opportunities may be more effective than formal education, given the limited additional technical skills required for AI implementation in SMEs.

Keywords: small and medium-sized entrepreneurship, Innovation adoption, Artificial intelligence (AI)

Publication based on the results of: Russian small business under external shocks: dynamics of adaptation (longitudinal study) (2024)