Strategies of the Development of Entrepreneurship and SME

The major specifics of Black Sea region is a unique nature conditions and comfortableclimate incredibly valuable for attracting tourists to the area. We would consider the tourism asa central factor for boosting the economies in the region.Country factor endowmentsNatural advantages of a Black Sea Region for Russia and Ukraine are somewhat similarbut Ukraine enjoys the most favorable conditions in regard to the size and development of theterritory. In comparison with these two countries Moldova that does not have a sea coastterritory but is relatively close to Ukrainian coast line, and would be the most interested in thedevelopment of tourism in Ukraine to serve the needs of the tourists with the SME sectorproducts, and the most famous one – great quality wines.All three countries had the similar system of school and university education and couldbe considered to be at the beginning of their way to independence at the same point. Lately,there was an economic crisis that lowered the Moldova’s position in comparison with peers, andmade Ukraine and Russia sustaining their advantage and even developing it but with differentgradients. Russia in duration of 10 years is investing money in the so called “Presidential”program of retraining managers that was (and still is) targeting primarily representatives ofsmall and medium sized companies all over the country. The initiative was later followed by thelocal and municipal investments in managerial education creating new programs in the regionof Krasnodar and Sochi.Ukraine is building on the former Soviet Union developments in the region of Crimea butservices are still rather underdeveloped. There are not many colleges and higher educationalinstitutions that are providing programs for managers of small companies.Country institutional frameworkAs we mentioned already, Moldova, Russia and Ukraine have the all the primaryinstitutions and agents (in the terms of the institutional theory) already in place. But themechanism of their interaction, monitoring, and changes each country has to develop itself.Creation of the new mentality is a long process. Different transition economies start withdifferent priorities. Thus China did not change political system much but focused on economicreforms; Russia went through the white waters of a “wild” capitalism and almost anarchy inEltzin’s times and get to the more centralized economy. Does centralization work for Russia? Itis to early to answer, but at least some stabilization in institutional system was achieved.Ukraine still has too sever, and too often internal fights between the major political groups thata hard work of the government on adjusting the institutional system to the country’s specificityis nearly stopped down. On a political arena Ukraine announced the intent to join the Europeanintegration. Russia insists on economic cooperation with European countries but not a singlemarket. As for Moldova, it is still not clear whether they join the neighbour (Russia that is atraditional market for their wine industry) or tie with the EU as the culturally closest nation,Romanians, did. The absence any clear strategy forces the country loosing the time ininternational economic competition, particularly in the Black Sea region.Related and supporting industriesIf related and supporting industries are well developed they could add a value to theSME sector in the region.None of the trio countries has a well-developed set of related to the tourism industries.The situation in Moldova is the worst, including the criminality. Banking, insurance companies,transportation, construction businesses, food firms and others in the Russia’s Black Sea regionenjoy increasing investments from domestic and international large corporations, municipal and71