Entrepreneurship in the SME Sector

Abstract

Competitiveness finds its ultimate expression in the prosperity that countries can sustain over time. Prosperity is sustainable if it is based on the level of productivity that companies can reach given the conditions they face in an economy. While competitiveness remains focused on macroeconomic, political, legal, and social circumstances that strengthen a successful economy, progress in these areas is necessary but not sufficient. Entrepreneurs cannot usually develop long-term stable financial basis from personal savings, nor does self financing tend to provide sufficient capital for investment. The access of SMEs to credit facilities from banks and financial support programmes is still limited. State assistance usually includes the creation of SME related infrastructure and providing the opportunity for its use at a reduced cost. On a national level, the policy on SME development should include assistance for the creation and delivery. The rapid expansion of the small business sector is proving to be a dynamic factor in support of economic revival. Despite the persistence of obstacles to small business development in most of the transition economies of various countries remarkable progress has been made in constructing a macroeconomic and legal framework within which private entrepreneurs can prosper.