Small business in transition economies : promoting enterprise in Central and Eastern Europe and the former Soviet Union

With the collapse of the communist central planning regimes throughout Eastern and Central Europe and the vast areas of the former Soviet Union, there has been a trend towards building up a significant private sector and encouraging dynamic growth in the emerging markets of national economies. The donor agencies have responded by developing aid programmes to help in the creation of a strong private sector and more specifically to help in the development of small and medium enterprise (SME). Venture capital investment, loan guarantee funds, business innovation centres, technical exchange visits and regional trade fairs are being set up in a region of the world where banking and marketing facilities are more often in short supply than technical sophistication. This work looks at some of the experiences of SME projects carried out in the various countries in the region that were reported. Four themes considered of central importance to SME development - financial suport, technical and management services, favourable policies conducive to SME development and the involvement of international donor agencies - are examined. These themes are illustrated through case study material presented at a major international conference in Budapest. These case studies describe and share the experiences of organizations and individuals involved first-hand in all aspects of small and medium enterprise development.