When we talk about the Soviet Union, many of us imagine a largely monolithic structure, in which most of the processes were controlled from the centre, with very little initiative from the side of common people. This stereotype is especially strong regarding the economy. After all, it was officially called “planned,” which suggested that all production was owned and regulated by the state. However, it may come as a surprise that during the first half of the USSR’s life, private enterprise played a large role in everyday life of Soviet citizens. Furthermore, during the birth and development of Soviet Union, non-government owned companies completely legally produced a large variety of consumer goods. Most of these were small-size individual entrepreneurships and cooperatives, as opposed to large industrial complexes operated by the state. That small-scale private production supported the government-owned heavy industry, and was largely beneficial for the country and the people of USSR. It provided many goods and services to the people which the state-owned companies couldn’t provide. Surprisingly, private entrepreneurship has always been a part of Soviet economy, and furthermore, it provided a substantial part of foodstuffs and consumer goods to the society.

The first topic to be discussed is the period that begins at the end of the civil war, when the Soviet system was finally dominant and its leaders had to commence post-war restoration. The economy of this period was largely characterized by the NEP – New Economic Policy. It primarily influenced agriculture, replacing “War Communism,” which involved direct food requisitioning, with food tax. Moreover, individuals were allowed to operate small private companies, while heavy industry and financial institutions remained under the state rule. The state economy, guided by the directive principles of War Communism, was unable to meet the demand for goods, especially agricultural ones, which was proven by the famine of 1921, during which six million people died. As a result, food requisitioning ended, and private business had to be allowed, which helped to alleviate economic hardship for many people. An objection may be raised that the policy was highly controversial both with the people and the government, and that it met resistance in higher circles. Furthermore, it gave birt