Policies and socio-economic conditions of private enterprise development in transitionary economies

Abstract

Implementation of market reforms has been a lengthy process in the countries of Central and Eastern Europe (CEE). Differences exist between individual countries in the scale of the reform process and the type of socio-economic development for entrepreneurial ventures. Hungary has been in the forefront of the transition from a centrally planned economy to a market economy. This paper evaluates policies and socio-economic conditions of private enterprise development in the transitional Hungarian economy. On-site surveys and personal interviews were conducted among small business owners to analyse perceptions of five selected factors of socio-economic conditions and ratings of satisfaction with seven policy items crucial in supporting entrepreneurial activities. An integrated model of entrepreneurial venture creation was used to analyse policy implications to assist private enterprise development in Hungary and other countries of the region.