Abstract
The sector of small and medium enterprises (SMEs) is important to the Lithuanian economy and its social development. However, small and medium enterprises are rather vulnerable due to their limited resources and other specific characteristics. Therefore they often are supported by governmental and international organisations. Many support programs concentrate on providing additional financing; others concentrate on the educational aspect, which includes training and business advice. Encouragement to use professional business consulting services belongs to the latter group and is rather unique. This impacts the overall outsourcing, transparency of operation and partnership in general. This educational aspect is specifically important to SMEs in transition economies, where traditions of using services of business consultants are very short.The article analyses how SMEs selected various types of business advice during a relatively long period of Lithuanian economy transformation. Choice differences between decisions of small (up to 50 employees) and medium (50-249 employees) companies are observed and analysed. The article analyses also the effects of consulting services on SMEs growth in terms of their sales and number of employees. This analysis allows indicating types of business consulting services that influenced the growth of enterprises more than others.The research is based on a survey that included over 300 Lithuanian small and medium enterprises.
Highlights
Small and medium enterprises (SMEs) have recently compelled researchers' attention
In Lithuania, SMEs account for more than 99% ofregistered companies, produce almost 70% of GDp, and employ about 70% of labour (Darulis et al, 2004)
Based on analysis of general economic indices and on the attitudes and perceptions of interviewed SME managers, we suggest four phases of the recent economic development in Lithuania: 1. Initial development of market economy 2
Summary
Small and medium enterprises (SMEs) have recently compelled researchers' attention. There is a strong agreement about the importance and complexity of this sector, though even the defmition ofSME is not absolutely uniform. The definition ofSMEs is typically based on employment, sales and some industry-specific criteria. The number of employees is the simplest indicator not dependent on any methodological or legal specifics. According to this criterion, the majority of countries agree that the SME sector covers companies that employ less than 250 employees. Quite often the group is subdivided into segments of small (up to 50 employees) and medium (50--249) enterprises
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