Strategies of the Development of Entrepreneurship and SME

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1. SME DECLARATION AND WORKING GROUP ON SMEs 3The core element of the political and economic transformation of any country intransition is the creation of a sound private sector and further development of SME &entrepreneurship. These are considered as the principal driving forces in economicdevelopment. SMEs promote private ownership, stimulate innovations and developentrepreneurial. Dr. Wulf Schönbohm, former Representative of the Konrad AdenauerFoundation to Turkey, often drew attention, that “without SMEs there is no change to build aflourishing private sector.The joint UN/ECE-CEI Informal Meeting held in Geneva on 3-6 March 2000 suggestedthat a Declaration on “Small and Medium-sized Enterprises at the Dawn of the 21stCentury” should be elaborated and then adopted on the occasion of the 3rd Economic Forumto be held on 22-25 November 2000 in Budapest. The draft of this Declaration was elaboratedby the UNECE Regional Adviser on Entrepreneurship and SMEs in consultation with the NationalSME Focal Points of all CEI countries. The Ministers in charge of the SMEs in the Member Statesof the Central European Initiative – CEI – on 24 November 2000 agreed on the main principlesof the development of entrepreneurship and SMEs in the transition economies. The so calledBUDAPEST DECLARATION ON SMEs AT THE DAWN OF THE 21 ST CENTURY was forwardedto CEI Governments and became an important policy compass on the transformation of theformer centrally-planned economy toward the market ones. 4Early 2001, the Permanent International Secretary of the Organization of the Black SeaEconomic Cooperation – further refers as PERMIS BSEC – requested the UNECE Secretariat toadopt this Declaration to the specialties and demands of the BSEC countries. This lead to theelaboration of a very similar document entitled “DECLARATION ON SMALL AND MEDIUM-SIZED ENTERPRISES AT THE DAWN OF THE 21st CENTURY”, and the Ministers in chargeof SMEs in Istanbul on 27 September 2001 adopted this document. In consequences of thishigh-level policy statement the subsequent establishment of the WORKING GROUP ON SMEs(WG on SMEs) on 16-17 May 2002, have been timely steps in the right direction. Today SMEsrank high in the priority list of BSEC. 5The main elements of the BSEC SME DECLARATION include:BSEC SME DECLARATIONISTANBUL, 2001‣ creation of a favourable enabling business environment;‣ improvement of legislation and regulation;‣ improvement of supporting infrastructure;‣ providing diversified financial systems for SMEs;‣ strengthening the technological capacity of SMEs;‣ strengthening the investment in the whole BSEC region, especially for SMEs,through BSEC Investment Initiative;‣ human resource development;‣ increase quality awareness to overcome technical difficulties to trade;‣ developing stronger, more effective representation of SMEs through publicprivatedialogue, NGOs and women entrepreneurship;‣ creation of a BSEC Working Group on SMEs for systematic exchange ofinformation, best practices and harmonization of action towards the wholepledgemarket economy and knowledge based society.3 Prepared by Dr. Antal SZABÓ, UNECE retired Regional Adviser on Entrepreneurship and SMEs4 http://www.unece.org/indust/sme/cei-decl.htm5 The main BSEC practical activities in various field of cooperation are performed in Working Groups under theguidance of the country coordinator elected for two-years term. The WG on Small and medium enterprises (SMEs) isone out of the 17 permanent WGs.4
It is important to mention, that parallel with this effort the OECD and the EuropeanUnion also recognized, that SMEs are the backbone of the European economy. Smallenterprises must be considered as a main driver for innovation, employment, as well as socialand local integration in Europe. Ministers and Governmental Representatives from 47 OECDand non-OECD countries including Bulgaria, Greece, Romania, Russian Federation and Turkeyfrom the BSEC region adopted the BOLOGNA CHARTER ON SME POLICIES. 6BOLOGNA CHARTER ON SME POLICIESBOLOGNA, 15 June 2000Acknowledgeg that SME competitiveness would benefit from:• a regulatory environment which does not impose undue burdens on SMEs and isconducive to entrepreneurship, innovation and growth through, inter alia: promotinggood governance and greater accountability in public administration; pursuing a fairand transparent competition policy, and implementing effective anti-corruptionmeasures; and fostering the implementation of transparent, stable and nondiscriminatorytax regimes.• education and human resource management policies that: foster an innovative andentrepreneurial culture, including continuous training and lifelong learning; encouragemobility of human resources; and reduce skill disparities by improving the matchbetween education and labour market demand.• effective access to financial services, particularly to seed, working and developmentcapital, including innovative financial instruments to reduce the risks and transactioncosts of lending to SMEs.• an environment that supports the development and diffusion of new technologies forand by SMEs to take advantage of the knowledge-based economy.• strengthening public-private partnerships and political and social dialogue involvingterritorial and institutional actors as a tool for exchange of information, utilisation ofknowledge and elaboration of policy.• ensuring the cost-effectiveness of SME policies and their consistency with othernational policies, as well as with existing international programmes.The European Commission elaborated the EUROPEAN CHARTER FOR SMALLENTERPRISES and this was approved at the Feira European Council on 19-20 June 2000. 7 TheCharter calls upon Member States – which are all market economies – and the EuropeanCommission to take action to support and encourage small enterprises in ten key areas.EUROPEAN CHARTER FOR SMALL ENTERPRISESFEIRA, 19-20 June 2000‣ education and training for entrepreneurship;‣ cheaper and faster start-ups;‣ better legislation and regulation;‣ availability of skills;‣ improving online access;‣ getting more out of the Single Market;‣ taxation and financial matters;‣ strengthening the technological capacity of small enterprises;‣ making use of the successful e-business models and developing top-class smallbusiness support;‣ developing stronger, more effective representation of small enterprises’interests at Union and national level.6 http://www.oecd.org/document/17/0,3343,en_2649_201185_1809105_1_1_1_1,00.html7 http://ec.europa.eu/enterprise/enterprise_policy/charter/index_en.htm5
Page 6 and 7: While comparing the BSEC and EU doc
Page 8 and 9: cooperation with the United Nations
Page 10 and 11: GENERAL ASSESSMENT OF THE BSEC WG O
Page 12 and 13: “Armenia's new law introduces a n
Page 14 and 15: (iii)Share of the labor force of SM
Page 16 and 17: The following data represents some
Page 18 and 19: RankDocuments for export(number)Tra
Page 20 and 21: • Industrial zones/Business incub
Page 22 and 23: 3.1.4. FINANCING SMEsProf. Dr. Sela
Page 24 and 25: • the loan is secured with movabl
Page 26 and 27: 3.1.4.3. Mutual and loan guarantee
Page 28 and 29: introduction of e-signatures, only
Page 30 and 31: The Code of Conduct for Civil Serva
Page 32 and 33: Trading Across Borders Enforcing Co
Page 34 and 35: as with all non-governmental organi
Page 36 and 37: Bulgarian SMEs obtain additional ca
Page 38 and 39: • Project BG 2004/016-711.11.04 -
Page 40 and 41: usiness is not approaching them oft
Page 42 and 43: • Romanian citizens are recognize
Page 44 and 45: The preparatory project of the NDP
Page 46 and 47: • To support participation in eco
Page 48 and 49: In 2004, the National Institute of
Page 50 and 51: Incubators host on average 11 SME,
Page 52 and 53:
Programs. The program is implemente
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development instrument is extremely
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accounting standards, including med
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corporations and open held corporat
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promoting SME sector, cooperation w
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• for unemployed (micro credit)
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are private pension funds, broker h
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very early steps of its democratic
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Another negative factor that is mor
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economy. The so called in the organ
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Federal funds, private capital, esp
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4.3. MOLDOVATable 14.Dimensions Neg
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Related andsupportingindustriesDome
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Technological:Internetaccessibility
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Domesticdemand• Still not many pe
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international investments• Govern
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3. Hamel, G., Prahalad, C.K. (1994)
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5.2 DEVELOPMENT OF THE SME SECTOR I
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General Characteristic of SME Devel
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Index of SME Development in Armenia
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The same problem exists in getting
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SME support infrastructure in Armen
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5 million was provided by UNDP and
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5.3 DEVELOPMENT OF THE SME SECTOR I
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Diagram 1. The number of small ente
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The privatization process of object
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13.Cabinet Provision on “Distribu
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5.3.3. SME support infrastructure i
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The role of the state in technical
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General situation of credit marketT
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After creation and starting impleme
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At the meantime, small enterprise s
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Table. 32.Ease of businessDoingBusi
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people who start small businesses t
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are salaried and the medium - sized
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Technology Foresight in Greece 2001
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Greek VC market started to develop
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In the area of bankruptcy and restr
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enterprises. According to TURKSTAT,
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small size enterprise or micro ente
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industrial enterprises. Undersecret
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individuals, rather than well struc
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7. SUGGESTIONS FOR THE SME DEVELOPM
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Annex 1.MAP OF THE BLACK SEA COUNTR
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17-18 June 2005 1 st Moscow Interna
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ARMENIASTRENGTHS• Application of
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BULGARIASTRENGHT• Flexibility and
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GREECESTRENGHT• They have a vital
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ROMANIASTRENGHTWEAKNESS• Stabilis
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REPUBLIC OF SERBIASTRENGHT• Longe
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UKRAINESTRENGTHS• Well educated l
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In compliance with the Resolution m
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1. Please provide definition of SME
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7. Did you establish a dedicated bo
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11. Do you have any suggestions for
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