Policies for Small and Medium Sized Enterprises’ Development in the Republic of Moldova: Results and Challenges

Lica Erhan,Tatiana Gaugas

doi:10.5171/2022.706025

Abstract

Small and medium sized enterprises (SMEs) are the main force for economic growth, but at the same time an extremely vulnerable sector, which constantly needs support from the state. Thus, one of the basic tasks in the state regulation of the activity of this sector involves the development of policies aimed to support small and medium business.

Highlights

Small and medium sized enterprises (SMEs) play an extremely important role in modern economies
At the same time, based on this analytical approach, it has been found that leading challenges for SMEs development include heavy regulatory framework, lack of diverse financing sources and high costs of infrastructure, global competition and lack of technologic and managerial capabilities
While corruption and political instability are factors affecting the economic growth of many emerging markets, these factors are often cited as the most problematic for doing business in Moldova. In these current economic conditions from Moldova, SMEs start their activity on a background of an economic uncertainty, and it becomes obvious that their successful development and even their existence on the market depends on the results of the support policies promoted by the state

Summary

Introduction

Small and medium sized enterprises (SMEs) play an extremely important role in modern economies. This research includes recommendations for overcoming these challenges and identifying requirements for the long-run development of the SMEs. The current study has been drawn up, using the official data offered by the National Bureau of Statistics, Organization for Small and Medium-Sized Enterprises Sector Development, the Ministry of Economy from the Republic of Moldova, World Bank reports Doing Business, International Monetary Fund (IMF) reports, Organization for Economic Cooperation and Development (OECD) reports, and the most recent references in this field of research.

Results

Conclusion