Development of small and medium enterprises in Lithuania

Abstract

Lithuania has realised in 2004 two important strategic goals – to become a member of the European Union and to join NATO. The country, being in transition from a centrally planned to a free market economy, is experiencing fundamental transformations. Lithuania has inherited an economy and energy sectors with an infrastructure, inappropriate for a small independent state. In order to transform the management of the national economy, it was necessary to perform many significant changes. Positive changes are based on the implementation of experience in developed countries and in transition economies. This paper describes the main alterations in management of the Lithuanian economy and energy sectors. The paper aims to analyse the country's progress in transition to a free market economy, the legal and institutional environment for small- and medium-sized business development in Lithuania, their role in the country's economy and the main policy trends. The paper also presents changes in the energy sector and opportunities for development of small- and medium-sized enterprises in this sector.