Strategies of the Development of Entrepreneurship and SME

very early steps of its democratic developments would urgently need the experience to balancethe initiative, and change willingness. The recommendations from the researchers andpracticing experts on SME sector development could serve as accumulated experience, andfacilitate the process.Needless to say that the cultural identity of the nation makes its way different from anyother. But at the same time globalization brings some unification in the process and helpsaccelerating the positive developments.The major driving force for the spread of the valuable experience over the transitioningcountries in SME sector is the rising diffusion of the ideas and knowledge throughout theboarders, incredibly increased with the European integration. Even the countries that areterritorially far away from the Europe are influenced by the transparency and democracygrowth in the European countries.The opportunity for each of three countries to continue the close cooperation, and workon a collaborative plan for the complex development of the Black Sea Region, preserving itsunique natural conditions and even developing the Common Economic Space would result inthe dynamic positive change of the countries’ institutional framework and economies.Scott (1995) created the theoretical platform, later also used by scholars to researchthe gradual improvements in economic reform of transitioning countries or vice versa dig upthe factors resisting to the economic growth. We consider the improvements in diffusionprocesses (described in detail by Scott) to be of a major importance at this stage of transition.All three countries, Moldova, Russia and Ukraine have the all the primary institutions andagents (in the terms of the institutional theory) in place. The major difference between themand well-developed economies is in the undeveloped “diffusion”, infrastructure of business, andimmature market oriented mentality. This especially comes true when it is related to the role ofgovernmental organizations and divisions, associations and funds.4.2. STRATEGIC APPROACH TO THE ANALYSISDIMENSIONS IN GENERAL ENVIRONMENT ASSESSMENTComparing the general environment of the targeted countries we would concentrateprimarily on what appears to be the most relevant: demographic, socio-cultural, political/legal,macroeconomic, technological, and global dimensions (G. Hamel and C.K. Prahalad, 1994). Thetargeted countries differ from each other in every of these dimensions. The researcherssuggest (H. Mintzberg, 1994) that the factors have to be split out in three groups (in our case,- those that have potentially positive effect over the SME sector development, then, negativeeffect, and finally, those that won’t affect it much). We would consider the mentioned criteria tobe a platform for the detailed comparison of the strategic situation in the targeted countriesDemographic factors include the dynamic change in ethnic composition; aging of thepopulation; change in population growth and decline in general, and by categories. Themajority of these factors except the dynamic change in ethnic composition look pretty similarfor Russia, Ukraine, and Moldova. Ukraine and Moldova seem to be rather stable in dispositionof its ethnic groups over years. Russia is changing dramatically because of the increased flow ofimmigrants from the former Soviet Union countries, primarily Central Asian. In addition to thatthe number non-immigrant workers from the NIS countries, China, Vietnam, and Koreaincreased in times, and continue mounting fast with the growth of the economy. Thus, withsuch a change in demographics, Russian socio-cultural factors for the SME developments aresignificantly affected as well. The research on managerial values over 42 countries of the Glob(Ralston et al, 2005) shows that the incoming nations have more corresponding with the SME66