Small Enterprise Development in South-East Europe : Policies for Sustainable Growth

Since the end of the Kosovo war in 1999, increasing attention has been paid to the problems of economic development and reconstruction in South-East Europe. In a context of limited resources, small and medium sized enterprises (SMEs) have a key role to play in creating jobs and building a dynamic entrepreneurial economy.__Small Enterprise Development In South-East Europe__ presents important findings from recent empirical research on key factors, which hinder sustainable SME growth in South-East Europe. Finance is identified as a critical barrier to growth, and the role of commercial banks, micro-finance institutions and credit cooperatives in assisting growth is addressed. Yet finance alone is not enough. A rebuilding of social capital, a reduction of the unofficial or grey economy, and the promotion of inter-firm networks and clusters are also of vital importance in promoting sustainable growth. The book concludes with critical analyses of SME policies in Albania, Croatia, and Macedonia, countries which hitherto have received little attention in the literature.__Small Enterprise Development in South-East Europe__ will be of great interest to policy makers, business consultants, and academics and post-graduate students working on economic development and reconstruction in South-East Europe. Since the end of the Kosovo war in 1999, increasing attention has been paid to the problems of economic development and reconstruction in South-East Europe. In a context of limited resources, small and medium sized enterprises (SMEs) have a key role to play in creating jobs and building a dynamic entrepreneurial economy. Small Enterprise Development In South-East Europe presents important findings from recent empirical research on key factors, which hinder sustainable SME growth in South-East Europe. Finance is identified as a critical barrier to growth, and the role of commercial banks, micro-finance institutions and credit cooperatives in assisting growth is addressed. Yet finance alone is not enough. A rebuilding of social capital, a reduction of the unofficial or grey economy, and the promotion of inter-firm networks and clusters are also of vital importance in promoting sustainable growth. The book concludes with critical analyses of SME policies in Albania, Croatia, and Macedonia, countries which hitherto have received little attention in the literature. Small Enterprise Development in South-East Europe will be of great interest to policy makers, business consultants, and academics and post-graduate students working on economic development and reconstruction in South-East Europe. Front Matter....Pages i-xvi Introduction....Pages 1-15 What Are the Main Barriers to Small Business Growth in Southeast Europe?....Pages 17-37 Social Capital and SME Development....Pages 39-69 The Unofficial Economy and the State in Transition....Pages 71-82 The Local Financial System and Sustainable SME Development in South-East Europe....Pages 83-125 Bank Lending to SME’s in Croatia....Pages 127-143 Micro-Credit in Transition Economies....Pages 145-170 Public Policy on Enterprise Clusters and Networks....Pages 171-191 Cluster Policy as an Aspect of a Pro-Active Industrial Policy in Slovenia....Pages 193-202 Promoting Supplier Clusters....Pages 203-227 SME Development Policy in Albania....Pages 229-239 Barriers to SME Growth in the Republic of Macedonia....Pages 241-266 Small Business Development Policy in Croatia....Pages 267-293 Back Matter....Pages 295-324