Book Chapter
Small Enterprises in Transition Economies
Causal Puzzles and Policy-Relevant Research
The small and medium enterprise (SME) sector carries great hopes and great burdens in the evolution of all transitional economies. It is difficult to imagine either rising overall living standards or social peace without sustained and healthy growth of this sector. While hopes that this sector would by itself have systems-dynamizing and transformational effects have not been realized, its role in generating employment and an atmosphere of social stability is crucial.