ISSUE Vol. IV, No. 4 October 2009

CONTENT ERENET PROFILE ______AUTUMN MESSAGE 2

PAPERS PUBLISHER Dr. Péter Szirmai – Editor 2009 Report on the Activities of the ERENET Network Dr. Antal Szabó – Scientific Director Attila Pethe ő – Website Editor Entrepreneurial University – Innovative Approach to Tamás Tóth – Designer Learning and/or Significant Changes in the Way INTERNATIONAL BOARD Universities Operate Dr. Sanja Pfeifer o University of Osiek The Impact of the Global Financial Crises on Small and Dr. Dumitru Matis Medium Enterprises in Russia Babe ş-Bolyai University o Dr. Szabo Zsuzsanna The Next Generation in Your Business: A Succession University of Tirgu Mures “Geiger Counter” Dr. Eric Dejan Enterrepenurship and Lesson from Small Family University of Belgrade Business in Mauricius – Part I Dr. Mateja Drovsek oo University of Ljubljana Family Business Survey 2008 Dr. Toni Brunello o Studiocentroveneto Contribution of family enterprises to the spatial Dr. Renata Vokorokosova, development in the North Hungarian Region University of Kosice o Dr. Krzysztof Wach Congeniral Value – Conflicts of Family Businesses – Cracow University Theoretical Background Dr. Sonia Heptonstall oc UBIS Geneva PH.D. THESIS SUMMARY Dr. Sybille Heilbrunn Ruppin Academic Center Beyond Corporate Social Responsibility Dr. Dilek Cetindamar Sabanci University CONFERENCE PAPERS Dr. Alakbar Mammadov • oooo Khazar University INSITUTIONAL PROFILE Dr. Gyula Fülöp University of Miskolc • c Dr. László Szerb • ccooocooc University of Pécs Dr. Zoltán Bajmócy CALLS – EVENTS – NEWS University of Szeged • ooc Published by: o • ocoo ERENET NETWORK • ooco Small Business Development Centre, oco Corvinus University of Budapest • ocooo o • [email protected] oooooo www.erenet.org o BOOKS © ERENET PROFIL, 2009 • Female Entrepreneurship and Local Economic ISSN 1789 -624X Growth ERENET Profile Vol. IV, No. 4. www.erenet.org

AUTOM MESSAGE OF THE SCIENTIFIC DIRECTOR

Dear Readers, Distinguished Friends,

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cccoo Photo by Dr. Antal Szabó © 2 ERENET Profile Vol. IV, No. 4. www.erenet.org

Dr. Antal Szabó cccoo o co 2009 REPORT ON THE ACTIVITIES OF THE ERENET NETWORK 1

Dear Members of the ERENET Network, Dear Colleagues and Friends, ooocoooo o oooc oo ocooo cococooo c o c o c o o co ooo oococcoc oooooo ooocoocooo coo oo o co c o o o coocco oooocc oooooooo co c o o o o co o cc o o c o o coo o ooo o cc oo o o co o o o o o oc ooo o coco ooccoooooo ocoooooocc ocoo oooooo ccoooo ooccoooo coccc cococ oo o ooc

MEMBERSHIP

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1 This paper was presented at the 4th ERENET Annual Meeting held on 25 September 2009 at the Institute of Economics Sciences in Belgrade. 3 ERENET Profile Vol. IV, No. 4. www.erenet.org

o o o o occocooco oc cooooooocoo o o coo oo cc oc o o o cooc cc c c oo o c ERENET Secretary o o ERENET SECRETARY FOR SOUTH-EASTERN EUROPE o Institute of Economic Sciences oooooco ooooooco ooocoooooo o ocooooo ocooccc Ms. Vesna Pejovic c oco occ c ooooooo o o o o co o ooooo ccoooooo oo Attila Pethoe ocoocoo coooo

MAIN ACTIVITIES SINCE THE 3 rd ANNUAL MEETING 1. The 5th European Day of the Entrepreneur in Croatia „Croatian Gateway to Growth” 1-2 October 2008, Zagreb cc co o Conference on “Employment through Education” occcoo c o c o cococ ooooccoooo ccoo coocoooo cooooo o o o o o co o c c o o ocococooo cooococoo ocoo o o co o c o o coo o c o co oooocoocoooo cco 4 ERENET Profile Vol. IV, No. 4. www.erenet.org

2. Workshop on ENTREPRENEURSHIP in COMPARATIVE PERSPECTIVE 3 November 2008, London

oo o o o cooc oc ooooooo o SESSION I Chair: Simona Iammarino o 10.00-10.40 Igor Filatotchev coo Strategic Flexibility, Governance and Knowledge in Threshold Entrepreneurial Firms 10.40-11.20 Saul Estrin ooocc Determinants of High-Growth Entrepreneurship in Comparative Perspective 11.20-12.00 Slavo Radosevic Maja Savic c Knowledge Intensive Entrepreneurship in Central and Eastern Europe. Results of Firm Level Survey SESSION II Chair: Natalia Isachenkova o 12.45-13.25 Friederike Welter David Smallbone o Entrepreneurship in Transition Economies 13.25-14.05 William Bartlett oo Mirela Xeneti o Entrepreneurship in the Western Balkans 14.05-15.00 Antal Szabo Tigran Sukiasyan Ishkhan Karapetyan ooo Entrepreneurship in the Southern Caucasus 3. International Scientific Conference on the Occasion of 50 th Anniversary of IES Challenges of Economic Sciences in the 21st Century 4-5 December 2008, Belgrade ocoocccoo cooc c ooo o o coococcooo cococoocoocco c c o cc c o cocooc cocooc o cooc o o o o o c co oo co o c coocccooo cc c o oo o o c ooooo o c cooc o co o ocooccooooo o o cooc cc o o co cocoocooc cooooocoo o oococ o Vincent Šoltés, Michal Šoltés: Antal Szabó: 5 ERENET Profile Vol. IV, No. 4. www.erenet.org

Mirjana Radović Marković: Radmila Grozdanić , Milanka Vučić , Nataša Cvijović: Svetislav Paunović: Peter Szirmai, Katalin Mihalkov Szakács Mirjana Radović Marković, Snežana Lekić: Bojana Radovanović: Renáta Vokorokosová: 4. International Workshop on UNIVERSITY ENTREPRENEURIAL EDUCATION 20-22 May 2009, Tirgu Muresh

oooo cooooRomanian Academy oo ccococ ERENET ccooo o Corvinus University of Budapest, Hungary; University of Miskolc, Hungary; J.J. Strossmayer University, Osiek, Croatia; Technical University of Košice, Slovakia; Institute of Economic Sciences, Belgrade, Serbia; University of Strasbourg, France; Fachhochschule, Frankfurt am main, Germany and „Pro Iure” Foundation, Tîrgu Mureş, Romania. oo Roundtable – “Entrepreneurial Education”-oc cccooooocccooc coooo ooooo

„ Best practices in entrepreneurial education in Central and Eastern Europe”

Educating Bachelors of Entrepreneurship – student perception of the impact of education on key competences, skills and attitudes and employability oo Entrepreneurship from Kindergarten to University in Germany occo Teaching Small Business Finance - Experiences From Corvinus University of Budapest o System of entrepreneurship skills training: methods and ways cccooco Entrepreneurial University – innovative approach to learning and/or significant changes in the way universities operate cocco „ Best practices in entrepreneurial education in Romania”

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Entrepreneurial skills and labour market , oocooocco New challenges of the relationship between entrepreneurial universities and competitive advantages oocc Romania general overview on entrepreneurship education oo oo Evaluation of the franchise business ccooccocoocc o General overview on business contracts coo „ Best practices in entrepreneurial education in Romania” Ethical Dimension of Entrepreneurial Education oo oo Main characteristics of Romanian and Italian Entrepreneur coo oooo Challenges in the entrepreneurship education oo Identity management teaching practices for new ventures oo Content and Language Integrated Learning (CLIL) within Long Life Learning Programmes on Entrepreneurship oo ocoo 5.

Entrepreneurship Research and Education Department of European Studies Network of Central European Universities Department of Entrepreneurship and Innovation

INTERNATIONAL SCIENTIFIC CONFERENCE ON ENTREPRENEURSHIP AND GROWTH OF FAMILY FIRMS ooooo coocooc June 4-5, 2009 Krakow, Poland (CUE campus) cooo cocococcooocoo oooooo 7 ERENET Profile Vol. IV, No. 4. www.erenet.org

o co o cooc o c co o o o o o o coc o o coc co c o co o cooc o co o co oo ocooooo o o o o ococccocooo ocoococooocc coocoococo ocococcoc ccocoooocoocc co o o c c o coocoocoocooc Conference Topics: • oocoo • o • oco • cooocooo • occo • ococooo • cocooooo Outcome of the Conference: c c o c ooocooococo ooocoooco cooccoocoocco ocooocooo coocoocococco oooc o o cc coc oc o oooocoooc oo c Managing Ownership and Succession in Family Firms, c co oococ Exploring the Dynamics of Entrepreneurship, c oooco oooc o o

6. Project on “THE ROLE OF BELIEF AND FAITH IN DOING BUSINESS”

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Research done by the international community March – November 2008

ccco Managing as if Faith Mattered oco occooooocc ooooooooo o o o o o c o oooococ ocoocooooccoo cooco c o c o o oco o cccocoooo cooc cocooooooo ooooo co o o c c o o o o o o o o co ococcoocooo o o o c co c o oc o o oooo coococooc ocooooocco cooo c o o oo o ooooo

ERENET PROFILE

oooooo oc ERENET PROFIL is a great success story. ooococ ooocococoooo c o co cooo o o coc c c co ococoococoo o cco oo occoo ocooocooo o c o coo o oco c coc oo oo coo co oo

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PROJECTS INITIATED BY ERENET AND CARRIED OUT IN NETWORK WITH OTHER UNIVERSITIES

1. STRENGTHENING THE EDUCATIONAL AND SCIENTIFIC COLLABORATION AMONG FACULTIES OF ECONOMICS WITHIN V4 AND COUNTRIES OF SOUTH EASTERN EUROPE See

Strengthening the educational and scientific collaboration among Faculties of Economics within V4 and countries of South Eastern Europe (No. 30810004 - IVF) c oc o coo o coc o occocoooo oc aims at joining educational institutions of Economics for establishing mutual educational and scientific network of teachers and researchers from corresponding V4 countries and neighbouring countries oc c o o o o o o oc coo o o c´ oc ooooccco oooocooocooo ccoocccoc ooooooococco ocoooc cooo ococ o co cc c o ccoocoooccooo Consortium Members are: • Technical University of Kosice, Faculty of Economics (Coordinator) Slovakia cooo Associate Prof. Renáta Vokorokosová, PhD. • University of Economics in , Faculty of National Economy (Partner) Slovakia, occooo Associate Prof. Eva Horvátová, PhD. • Silesian University in Opava, School of Business Administration in Karviná (Partner) Czech Republic, occooo Associate Prof. Marian Lebiedzik, PhD. oc • Czestochova University of Technology, Faculty of Management (Partner) Poland, oc cooo prof. PCz. dr. hab. inż. Janusz Grabara, c • University of Miskolc, Faculty of Economics (Partner) Hungary occooo Associate Prof. Sándor Karajz, oc • College of Social and Administrative Affairs , Havířov (Partner), Czech Republic occooo Prof. PhDr. RNDr. Stanislav Polouček, CSs., c • Union University of Belgrade, Belgrade Banking Academy (Partner), Serbia occooo Prof. Dejan Eric, c • University of Pardubice, Faculty of Economics and Administration (Partner), Czech Republic, occooo Associate Prof. Ilona Obršálová, CSc. cc 2. EUROPEAN ENTREPRENEURSHIP EDUCATION PROJECT number 134096-LLP-1-RO- ERASMUS-ECOM

The Project aims at elaborating and implementing an optional module on entrepreneurial education for Bachelor and Master students in Engineering, IT, Physics, Chemistry and Biology. ocoococcooo Consortium members are: • Petru Maior University of Tirgu Mures (Coordinator) Romania • Fachhochschule Frankfurt am Main (Partner), Germany • IUT Louis Pasteur – Stassbourg (Partner), France 10 ERENET Profile Vol. IV, No. 4. www.erenet.org

• University of Miskolc • Technical University of Kosice o

COOPERATION WITH OTHER NETWORKS

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European Small Business Alliance (ESBA) oo oococcoo ooccocooo ooooccococo ccoooo o ocooocooo c o o o cooooc oococooooocooooo cocooccoooco ooooooo ococoo ococccoocco ooccoo 2. Permanent International Secretary of the organization of the Black Sea Economic Cooperation and the Turkish Representative of the Konrad Adenauer Foundation.

BSEC Workshop on Development of Youth Entrepreneurship and SMEs 1-3 April 2009, Istanbul c o o o cc co o o c o o c o o o c cooc ooo o o o oo o oooooooo cccoocooooco ooooococ oooooooo coooo o c o o o c cooc ooo o o o oo o coooooo ocoo coo o o c coo o cc o oo co o oo ooooo o o cc o coo 11 ERENET Profile Vol. IV, No. 4. www.erenet.org

o cc co o oc o c co o ococooooo cc co o o co o cococooooc 3. International Small Business Congress - ISBC 2008 Congress 4-6 November 2008, Belfast, N. Ireland

oooooco oocoooooo ooooco oocooooco Promoting SMEs in Emerging & Transition Economies oo Session Chair: Dr Antal Szabó, former Regional Adviser, UNECE; now Scientific Director, ERENET, Budapest Corvinus University, Hungary ocooooo Topic: Academic Strategies to Improve the Competitive Profile of SME

o o The Impact of Entrepreneurship Education on Economic Growth in Romania ooo ocoocococ Topic: Capacity building for entrepreneurship support in Armenia ocoococcoocccooo o Topic: Analysis of Entrepreneurship in Economies of Transition versus Developed Countries

PARTICIPATION IN INTERNATIONAL EVENTS

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Prof. dr Svetislav Paunović cocc occ

ENTREPRENEURIAL UNIVERSITY – INNOVATIVE APPROACH TO LEARNING AND/OR SIGNIFICANT CHANGES IN THE WAY UNIVERSITIES OPERATE

Abstract This paper elaborates the challenges of entrepreneurship education as one of the key elements for business success. Having in mind that entrepreneurship is a highly creative and innovative process, it appears that traditional educational techniques have not undergone significant changes and that educational processes still stress out values and approaches, which are not supportive to entrepreneurial spirit and culture. Traditional programmes educate «about entrepreneurship» rather than «for entrepreneurship», providing knowledge and information about key elements of entrepreneurship, but fail to create and improve abilities and skills to implement entrepreneurial behaviour in the real business environment. All participants in the entrepreneurship education process are expected to shift from traditional methods of teaching to methods of learning which support entrepreneurial creativity and intuition. It demands not only innovative approach to learning but also significant changes in the way universities operate. Universities are expected to be entrepreneurial. Teachers and students should turn themselves into entrepreneurs, while the interaction of the universities with the community should follow entrepreneurship patterns.

1. The role of entrepreneurship education and relevant EU policies

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2 see: Paunovi ć S.: Preduzetništvo – od biznis ideje do realizacije ; Univerzitet BK, Beograd, 2003,p. 23.

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2. Notes on entrepreneurial education in Serbia

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3 http://europa.eu.int/comm/enterprise/enterpreneurship 4 http://europa.eu.int/comm/enterprise/enterpreneurship/support_measures/training_education/ 5 European Commission - Enterprise Directorate-General: Final Report of the Expert Group “Best Procedure” Project on the Education and Training for Entrepreneurship , 2002.

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3. Model of “entrepreneurial university” coooooco c o o c o c o oo cc co co o o o o cocooocoo c o co o c ocoooooocooc o oc oc cc coco o ooooocooocco cocccoooocoocoo oc o o o o o c o o oc o co coc o cc ooocoooo cooocococ cococo c o oc coocoooo o o co o o o o c ooooooo oococoocooo o oo o o o o o o ooooococo ooco co o o o c c oooococcoocc o o o o coc c c c co c oo c oc coo c o occooco o o o co coc o c oooooccocooc o o o co o c oooooccococ ocococooc ooccccocooco ococooc cococoocooo coocoocoo ocococococoo ocoooooocoo c o coc o co ooocoocoocccoc oooooococococooo ocoooooooooo

6 Blenker P., Dreisler P., Kjeldesen J.: Entrepreneurship Education – the New Challenges Facing the Universities, PILE group Aarhus School of Business and University of Aarhus, Working paper, 2006-02, p.38.

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7 Bygrave W.D.: The Portable MBA in Entrepreneurship , John Wiley & Sons Inc., Hoboken, New Jersey, 2004., p.7 8 Etzkowitz H.: MIT and the Rise of Entrepreneurial Science , Routledge, London & New York, 2002., p. 6-7. 9 Trachtenberg S.J.: The New Entrepreneurship University, speech to the AAUA; 1999. (see: http://www.gwu.edu ) 10 Etkowitz H.: The future of the university and the university of the future: evolution of the ivory tower to entrepreneurial paradigm, Research Policy , 2000, vol.29, p. 313-330, 16 ERENET Profile Vol. IV, No. 4. www.erenet.org

cooooo ocoocooo oc ooco ocoo co o co c co ooo o o oc o oo o o o o o o oc o o oooo o oc c o c c o c c co oco o o c o o co o cc cc oc o o coco c o oc coo o ocooooooococ ooooco cccococcooc occococooc cc coc o oc o co co oc coooooo oococo o cooooco oo c coooco ooooococ co c o o o c cc o o oc c cc o o cc o o o c co o o coo o o o co o co oc o o c o c o c ocooocooooccco ocoocococccoocooo o o c o o o co cccoocccoo o oc c o c cocoo ococooo ccoccocc cooocoooooocc cococooooo

11 See: Atherton A.: Thinkpiece – Creating the entrepreneurial university of the 21st century, EntreNews , issue 2/ 2004. 12 Ropke J.: The Entrepreneurial University: Innovation, academic knowledge creation and regional development in a global economy; Phillips University Marburg, 1998. (see www. wiwi.unimarburg.de) 13 Clark B.R.: Creating Entrepreneurial University – Organizational Pathway of Transformation , London and New York, International Association of University Press and Pergamon-Elsevier Science, 1998.

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4. Summary coococ oooooocccoo coococooo ocooccco coccooo cooocoooo o ooooocooc oc o o o oo o o o o c o o c co o o o oc o o o o oo o o o o ococcooocoo o cc o c co o o o o c o oooocoococcoc ocococcc REFERENCES

[1] Atherton A.: Thinkpiece – Creating the entrepreneurial university of the 21st century, EntreNews , issue 2/ 2004. [2] Blenker P.,Dreisler P.,Kjeldesen J.: Entrepreneurship Education – the New Challenges Facing the Universities, PILE group Aarhus School of Business and University of Aarhus, Working paper, 2006-02. [3] Bygrave W.D.: The Portable MBA in Entrepreneurship , John Wiley & Sons Inc., Hoboken, New Jersey, 2004. [4] Clark B.R.: Creating Entrepreneurial University – Organizational Pathway of Transformation , London and New York, International Association of University Press and Pergamon-Elsevier Science, 1998. [5] Etzkowitz H.: MIT and the Rise of Entrepreneurial Science , Routledge, London & New York, 2002. [6] Etkowitz H.: The future of the university and the university of the future: evolution of the ivory tower to entrepreneurial paradigm, Research Policy , vol.29, p. 313-330., 2000. [7] EU: Action plan to promote entrepreneurship and competitiveness , 1999. [8] European Commission: Improving and Simplifying the Business Environment for Business Start-up , 1998. [9] European Commission - Enterprise Directorate-General: Final Report of the Expert Group “Best Procedure” Project on the Education and Training for Entrepreneurship , 2002. [10] OECD: Fostering entrepreneurship , 1998 [11] Paunovi ć S.: Preduzetništvo – od biznis ideje do realizacije (Entrepreneurship – from a business idea to realisation); BK University, Belgrade, 2003. [12] Ropke J.: The Entrepreneurial University: Innovation, academic knowledge creation and regional development in a global economy ; Phillips University Marburg, 1998. (see: www. wiwi.unimarburg.de) [13] Trachtenberg S.J.: The New Entrepreneurship University, speech to the AAUA; 1999. (see: http://www.gwu.edu) [14] http://europa.eu.int/comm/enterprise/enterpreneurship/support_measures

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Veronika PUTILINA cooc oocoooocooco o cooo

THE IMPACT OF THE GLOBAL FINANCIAL CRISIS ON SMALL AND MEDIUM ENTERPRISES IN RUSSIA

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127%

122%

117%

112%

107%

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97% 2004 2005 2006 2007

GDP Growth MSE Quantity Growth o c c c o c o o coooooocoooo o oocooccco o c c o o o ococ oo cooooocoo oocooocooo ocooocco ooccocoooo 19 ERENET Profile Vol. IV, No. 4. www.erenet.org

c o o o c c c coc o oocoo ooo o o o o o o o o o cocooocoococ ocooooooooco o o o oo c c c occoo occooooocco o co o o o ocoooooo ooooc cocooooo oo ooco occoo ooocooo o ocooooco ooo ooooo o oc o o o o o o cocoooococ o c c o o c o ocooooooo co o o o c o cc o ocoocoocoooco o coc o o o o o o o o co c o o o o cooooooocooo coooo co o o c c o c o oooccoc oococo c co c co c co o oo c oco o o o o oo ccooooccoo ooooocooc oc ooooo ooooooo oo o o o coo o o o co ocoocoooooo oooooocoo oooocooooooccoco ococ

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GRANTS FOR START-UPS

INTEREST RATE 300 mln. MICRO SUBSIDISING FINANCING Euro DEVELOPMENT

SME LOANS GUARANTEE FUNDS

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David M. Paradise oc coco

THE NEXT GENERATION IN YOUR BUSINESS: A SUCCESSION “GEIGER COUNTER” Keywords: Family businesses, entrepreneurship, succession Introduction cooocoo coccoooo o o o cco occco can have a major impact on the families who own them, their employees, and on the larger economy, nationally and internationally. ccooccocoooo ooooccooo ococ oooccocoo Multiple Priorities

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14 David M. Paradise, Ph.D., is founder and president of the Family Business Resource Center, Newton Centre, MA, a firm that specializes in consultation that facilitates family and business development: Strong Families Make Strong Businesses (http://www.paradisefamilybusiness.com). 22 ERENET Profile Vol. IV, No. 4. www.erenet.org

ooocooo oocoocoocococoo oocooo occoc coccocoococ oooccocccoocoooc cooccc ooocooooccooccococ ocooococooccooc cocoooo c cco oc o o c c coc coc o o o oooococco o o cco oc o o ooccocoo o o o o o o co o o cooooooo ococcco oooococooccooccoo coccoccooooo cococcoooco ooooo ooccoccoc ccoccccoco coo o cco oc c ococo ccocooococco co o o o c o o co o o coc oo o o c ccoooocco ooococcocoocoo ccoooocococ o o o oc o c o c coccoocco oocoocc Developing a workable succession plan - Elements of a “Geiger Counter” approach 1. Engaging in a reflective process ocococoococ ocooccooo ooocoo oo o coc o o oc o c c oocococooocco ccco

2. Grooming a successor – Early oococooooccoco oo cco cocoocooo oocooo cc cco c o o o o o 23 ERENET Profile Vol. IV, No. 4. www.erenet.org

c o cc c o ooooc cococooooocc occooooccooc 3. Identifying shared and Non-shared goals o o c o o cco oc o c ocooococoococ oooocoooc oooooooooo coocooccoco ccocococo ccooo o c oo o o o o o o o c o o c co coooooocoo cooocooo oococooc c o co o c co cooocococooco coocooocooc oco ooocooooo occoooo oocoocococ ooocooooc ococcoccoco oc co o o c occococoo ococcoo c cco oc o o coco c ocooco ocoocococo o o o c c o oocoocoococoo cooooo ocooooocooooocco ccoccoooooco oococooococccoco o oc o coco o o c o cc oco ooooco o c co c cco oc c c co cco oc o cococo occooccoocc oooo ooocococcooo cccoccoocc ooocoooo ooo 24 ERENET Profile Vol. IV, No. 4. www.erenet.org

4. Revisiting the successor issue oooocoo oocococccooooo ooocoocooco

Conclusion ccoooco ocoooocco ocoooccooooocco oooccoo co c oo coco o o c o ooocooccooooooo oo REFERENCES o Providence Business News, . ooococco Family Business Review o o ccooococo

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Ms Mridula Gungaphul MA oco coo ocooco Mehraz Boolaky, PhD ooo ooo oo ooooco

ENTREPRENEURSHIP: IMPLICATIONS AND LESSONS FROM SMALL FAMILY BUSINESSES IN MAURITIUS Part I. Abstract

Family firms contribute widely to economic growth and activities in countries worldwide, especially in developing countries and they play a significant role in the process of entrepreneurship. While extensive research has been carried out in the field of entrepreneurship and small and medium enterprises (SMEs), research on family businesses is scarce and almost non existent in Mauritius. Policy makers in Mauritius have for more than a decade been encouraging more and more people to embrace entrepreneurship as a career with a view to reduce unemployment, alleviate poverty and contribute to the economic growth of the island. Public Policy instruments have been put in place to support entrepreneurship in general but family business owners received no special attention although they represent the backbone of entrepreneurial ventures in Mauritius. This study seeks to gain an understanding on various aspects, such as conflicts, strategic and succession planning in small family businesses as these parameters have been acknowledged to be the main areas of failure in family businesses. A semi-structured questionnaire has been personally administered to a convenience sample of thirty family business owners operating in different sector of activities. The main findings of the study are that these businesses make valuable contributions to the family and their businesses such as creating a bond among family members and providing financial safety. Conflicts also exist to varying degrees depending on the areas involved. The study also reveals that the small family businesses do not attach much importance to strategic and succession planning. This study contributes to the scant literature on the role played by family business owners in the entrepreneurial field in Mauritius and also attempts to help policy makers and other stakeholders with valuable information to provide appropriate support to enable family businesses to survive, grow and prosper for the benefit of the entrepreneurs and the country.

Keywords: Family businesses, entrepreneurship, conflict, strategic planning, succession, Mauritius

Introduction co o o co oc o o o cooccocooo o c o c o o o c c o o oocococcoocc oooooo c o o o et. al o cooooocoo o c o o o o oo co co c o o coo ccooccooocoo oooo 26 ERENET Profile Vol. IV, No. 4. www.erenet.org

c co co o o c o et al. ooo c o c oooooo ococoocoooo cococ et al., 2003) co et al. o o o c o oc c o co c o o o o o c c o co o oooococco o c o o c o o o oc o o o oooccococo ooccooo ooooocoo ooooo et al. o oc o c o o coo c c o oo o ooooooococc cco • oocococo • ocooo • oocoococ • ooocco o o o o o co o o o o o o o o coo

Literature review

ccooooocoooco ccoo o co cooc oc o c o ooooooooo o o c o o coc oo o oooco o o co o oocoocoo oooooooooccco ocooooo ooocc o o et al. o coo oo o co o oo o oo coocooco oo c oc o o oc o ooooooco oocccooooo ccooocooooooo oocooco ooo oooocoo ooooococo 27 ERENET Profile Vol. IV, No. 4. www.erenet.org

coccococo ooooo oococooc o coo o o c oooooo et al. o occooocococc coocooo o o o o o o o et al. coco cooccooooo ooooc ooccoo ooooo coocooooo coooooo coo oooco cooocooooc cooo oco o o o o coco

Benefits and contributions of family businesses

oooocooo o o o o co o o o o o o c o ooooocoooo o coo o o o co o o o ooco oooo ooooooo cocooocco ooocccooo oococco o c c o o c c c c o o o ococooooo cooocco ooooooo o o o o o o c c o o ocoocooooo cocoooccoooco oocco ooooooooooooc oc o o c cooooccocoo oococoooo oooooco oococcoo

28 ERENET Profile Vol. IV, No. 4. www.erenet.org cocooocoo ococooocco o c o o co o o o cocoo

Sources of problems in family businesses

ooc ooco ooocooooo ooooo ooocoocooo coooco et al. oooc occcoooo ooo ccooccooo c o cc o o o c o o o ooooocococc ooooco ccoccooo ooocooo co o o o c o co o o o o c oc cco o o co et al. oooococ o o o c cooc ocoococoo ooccoo ocoocoooo oco et al. ocococo oooooocococo o oc o o oc o cco o ooooo occoc oooooooccc oooococoocco ooooooo

Managing conflicts in family businesses

oocooo ocococcoo oo oo o coc o oo o o o coc cccoco et al. ococoo oococoooooc c cooo coo ccooo oo cooo ococooooocoooo ocoooooocccoc 29 ERENET Profile Vol. IV, No. 4. www.erenet.org

o o o cc oo o o ccooo coc ococooococo o ccooo c c c o oooococooo coc o co o oo o co ccoococcooooo oococco oococooc cooocooc co

Brief history of Mauritius and the development entrepreneurial activities

occooooo oocooocooc ccooccoocooo oooooooo cocoo cocoooooo coooocc cocoooc c co o o c co c ococooooc cc coooocoo o o o co o o o c oooooooc c o o o o o cooooooo o ooocoocooco o o o o oo coooocoooo o o c o oocoococo ooocc o o ooco coo o coo o c c o coo oo o oo o o o ooocoocoo coococoooco oocooco c o co o coco co c c cooocoooccooooocoo cooccocoooooo ccocoocooco coccocc occooo cooco cooo c c o o oooocococo oooco ooco ocooococ ooooocco 30 ERENET Profile Vol. IV, No. 4. www.erenet.org

ccoooccocoo oocoooooo o o co occcoccoooco ooocococo REFERENCES c o c cco oo o coccco o o Making a Difference: The PricewaterhouseCoopers Family Business Survey 2007/09 cooo c A Family Affair. Today’s Family Businesses c ocooo oo c co o cco o o Family Business Review o Reframing Organizations o o c oo oco cc o oocooocooco c oc o o oo o o o c ooooc oo Challenges in Managing a Family Business. o o c cco oc oc o ooco ooc o (1931 oc . oc Strategic planning for the family business ooo oooocooco coco The Preservation of the Fruits of Entrepreneurship in Family Business with Risk Management ccccc coooco o American Journal of Small Business oo ooo o oo cco The Family Business Network Newsletter o o c o coc o oc Academy of Management Journal, oo o The Seven Habits of Highly Effective People oc

31 ERENET Profile Vol. IV, No. 4. www.erenet.org

o o o o c o International Small Business Journal, CSO (2008). oocoo (2002-2007), Economic and Social Indicators, Central Statistics Office. oooccoco European Business Review oo c coc o o o ooooo coococ oooco ooc oooco o Association for Small Business & Entrepreneurship Proceeding o o Journal of Accountancy oooocc ococooococoocoo Managing Succession in the Family Firm: The Next Generation Family Members Experience oooo c oooco oc oc o o oc o o oc The Entrepreneur: Mainstream Views and Radical Critiques o oocoooo cooooo coooo o o o ccc o o o oocoooo ccococ Family Business Review oo c The Stoy Hayward Guide to the Family Business cooooo coo Guide to the family business o ooc Harvard Business Review oo Harvard Business Review, oooccococoo c Family Business Review oocooco ooooocoo o o c o o co o o

32 ERENET Profile Vol. IV, No. 4. www.erenet.org

ocooo oo oocooco coo oc oc o o oc o o oc o o o o c o cococooocoo cccocco oo The Family in Business: Understanding and Dealing with the Challenges Entrepreneurial Families Face occo o o o c o o cco Family Business Review, 6 occo Family Business Review oo oooc cc Family Business Review o c Growth of small business increases oo oo oo o oco c c oc Psychological Bulletin, 108 ooccoo c c oc oc o o oc o o oc ococ Journal of Management, o cooc oc oc o o oc o o oc cooco Family Business Review

Photos by Dr. Antal Szabó ©

33 ERENET Profile Vol. IV, No. 4. www.erenet.org

Pavla Odehnalová ocooc coo occ c

FAMILY BUSINESS SURVEY 2008

Abstract

This paper includes the results of the empiric research made by the Masaryk university in 2007 concerning the „Competitiveness of companies“. Consequently the research was enlarged on the family business. Research mainly concerned on the group of stakeholders as suppliers, consumers and employees. Results from this research were compared with these gained from the research made in Western Europe and USA. Some findings concerning the behavior of family business were the same, but there are also findings which differ from findings from foreign research. This paper also tries to get the interpretation of different findings, and search the causes of these differences.

Key words: family business, competitiveness, ownership, suppliers, consumers, employees

Introduction

coooocoooo cooocccoo coc c o c o ooo ccooooc oo o occ oo cooc oc o o o o o oo oc ocoocoocoo oocoooooocc oocoococo oco ooooccoocoo ccocco c o o o o ocooocooccoco ocoococcoooocoocoo c c coo o co o o ocooccooc coooco coccocoo oooo

Methodology occoccooc coccococococo cccoo oooooo cococooco ccc

34 ERENET Profile Vol. IV, No. 4. www.erenet.org

• ooo • ooccoco • c co ocoocoo co o c o o occo

Results o co co o co co o cooo

Internal factor of competitiveness cocco co c cc oo o oco co c o co o ococoo occoococooo oc o co c o o co o occococ oc

Financial efficiency ooccoo ccooooooo

Graph 1: Financial efficiency

Financial efficiency

60,00% 52,70%

50,00% 46,00% 43,70% 39,60% 40,00% Non-family business Percentual 30,00% Family Business Percentual 20,00%

10,30% 10,00% 7,70%

0,00% ABC

Source: Processed by author

15 Making a difference. The Pricewaterhouse Coopers Family Business Survey 2007/2008 TYEE, L. N., Family to family, Family business study, Seattle university: Oregon, 2007 American business survey. Mass mutual. Kenesaw State University. Family Firm Institute.2007.

35 ERENET Profile Vol. IV, No. 4. www.erenet.org

ooooooooo occcoocoo ooooocooccoc oooocooco oooo ooocoooo cocco cooo cccooco occcoocoo cococcoocccoc oooccoocooco o ooo co o co o oo o oco co c co o o o co o co c cooocococo ocoooocccooo oooococco coooooo cccoooco

Innovation ooocoooo oocoo o o o o c o o coooococoo occoococc oooocccoooo Graph 2: Innovation Innovation

60,00 52,22 50,00 44,15

40,00 36,04 35,56

Non-family 30,00 Family 19,82 20,00 12,22 10,00 0,00 Source: Processed by author lower average higher

16 Josua and Pavel Kohn textile factory, Tugendhat family – owners of scores of textile companies, Otta Kun textile factory, Teuber textile company, and so on. 17 Making a difference. The Pricewaterhouse Coopers Family Business Survey 2007/2008 TYEE, L. N., Family to family, Family business study, Seattle university: Oregon, 2007 American business survey. Mass mutual. Kenesaw State University. Family Firm Institute.2007.

36 ERENET Profile Vol. IV, No. 4. www.erenet.org

Care of consumer

ococoo c o co o o co o o co o coo o coooocooo oooooooco cco

Graph 3: Care of consumers

Consumers care

70 60,23 60 52,02 50

38,21 40 Rodinný charakter podniku Non-family 29,55 30 Rodinný charakter podniku Family 20 9,65 9,23 10

0 lower average higher

Source: Processed by author

Level of employee’s qualification co o o oooooooo coooooo oocoocooo ooo

Graph 4: Level of employee’s qualification

Level of qualification

70,00 64,04 Non-family 60,00 Family

50,00 47,15 42,65 40,00 L 30,00 25,84

Source: Processed by author 20,00 10,20 10,11 10,00

0,00 lower average higher 37 ERENET Profile Vol. IV, No. 4. www.erenet.org

coooooooooo oooooo cooooooo o cooococco oooocoocoo oocc

External factors of competitiveness ocoocoooc occoo o o ococoooo

Stakeholders ocooco oooo cooo

Graph 5: The important of the stakeholder - state State

Source: Processed by author 60,00 54,44

50,00 47,30 oc Non-family o o o co o Family c 40,00 o 29,29 28,57 30,00 oo 24,17

20,00 16,28

10,00

0,00 not important average important

Graph 6: Importance of stakeholder - customers Importance of customers 120,00

95,61 100,00 93,82

80,00 Non - family business Family business 60,00

40,00 20,00 5,29 4,40 0,88 0,00 0,00 not important average importatnt Source: Processed by author 38 ERENET Profile Vol. IV, No. 4. www.erenet.org

Graph 7: Importance of stakeholder - employees

Importance of employees

80,00 71,7773,62 Source: Processed by author 70,00

60,00 Non - family business o o 50,00 Family business o 40,00 cco o o 30,00 25,29 20,88 oc o o o 20,00 o c 10,00 5,49 cooo 2,94 co o o o 0,00 co o not important average important o oc o ococcc c o co o o o ooooo

Owners ooccooooo

Graph 8: Structure of the owner

Structure of the owner

35,00

30,00 Non-family business 25,00 Family business

20,00

15,00

10,00

5,00

0,00 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 20 21 22

Source: Processed by author

oocoooc ocooocooco co o o o o o o o o ccoooccco oooco o co o o o 39 ERENET Profile Vol. IV, No. 4. www.erenet.org coooocooo cocoocoo coooo coocooooo

Employees o o o o o o o o co coooooooo

Graph 8: Number of employees

Number of employees

45,00% 42,85% Source: Processed by author 39,80% Non - family business 40,00% Family business 35,00% 32,96% c c 31,40% ccoo 30,00% 28,70% 24,10% co o 25,00% oc oc 20,00% coc 15,00% o o 10,00%

c 5,00% c 0,00% o o 40-99 100-249 250 and more coo ocoocoo c cccoco o c o c co o c o o oc o c c o o cc cooo ccooc

Customers o o c o o o o o o cooo

Graph 9: Company strategy Non family business Company strategy Family business 35,00 31,25 31,51 Source: Processed by author 28,42 30,00 25,00 oc o 22,60 25,00 21,25 22,50 cc oc 20,00 17,47 o o c 15,00 coo o 10,00 oc o 5,00 0,00 coo S ION T o o o EN R ST FOCUS O oc IFFE C D

o oc o COST LEADERSHIP

IFFERENTIATION FOCU D 18 American business survey. Mass mutual. Kenesaw State University. Family Firm Institute.2007. 19 American business survey. Mass mutual. Kenesaw State University. Family Firm Institute.2007 40 ERENET Profile Vol. IV, No. 4. www.erenet.org

ccocooccooooc ocoocooococo ocooocooc cocooco

Suppliers o c o co o cocccococc ocooccccoo o

Graph 10: Price of supplies Price od supplies Source: Processed by author 120,00 Conclusion 100,00 96,66 o o 88,39

c c c Non-family business 80,00 o ccc o Family business

o 60,00 o c c o o o 40,00 c 20,00 c 10,42 3,33 oo 1,29 0,00 0,00 o o o co Not important Average Important oo occoccoocco oocccoo cocoococ ccooocc c cc o o c oc o o cocccooococo REFERENCES oocooooo Are family business really different Family Business Review, o Rodinné podnikání o Rodinné podnikání a jeho vliv na trh práce v ČR – případová studie o coocococoo Rodinné podnikanie ooococ c ccooo cocooo oo

41 ERENET Profile Vol. IV, No. 4. www.erenet.org

László Borbás c cocooc oo CONTRIBUTION OF FAMILY ENTERPRISES TO THE SPATIAL DEVELOPMENT IN THE NORTH HUNGARIAN REGION

1. GOAL OF THE RESEARCH c o o c o o c o co o co o o o o c o c c c o o o oc coocoooo oooc oocooo ooccoo oococo ccooo ococoooc ooo oooooococo oc o o o o o o o o o coc o o oococooooco ooocoooco ococoocococ co o o o o o o coccoocoo cocoocoocooococoo oocooc c o o o coo o o cooo oocoo ccooo ooooooc oooooooco oooooo c c o coooooooo ococoocooocooo coooocooo ocoocccocoo oo oo o oc o oo oo o o o oc oc c oo o o cc cooooccocoooo 2. EVALUATION OF ANSWERS

2.1. Business environment ocooooccc ccoooc

42 ERENET Profile Vol. IV, No. 4. www.erenet.org

• coc • occoo • cocoo • o ocoocoooc ooooocccooo ocooocooc coooooooooo ocooooocoo o o o oo o o o o o c c o c cc oo c o cc oo co o o o ooo o o o o c c o o o o o coo o o coco c c ccocoooco occocooooo ocoooooo cocoocooooccoo oococoocoo oooooccoc occoo o o o o c c oc o o ooooco c 2.2. Quality of life ocoooooocooo c o o o o o ooococoococ 2.3. Local demand conditions occooococoococ co o o o o o o o co co o co o oc c oc ooocoo ooooococc ocooooocococc o o c oc o c oococc 2.4. Rules and incentives governing investment and competition cococoococ ocooooccco oocococooc oooooooooc o o cc o o co oooccoo oooocoocooco occoo ooocooco c coo c o o c o o ooooocco o o o o coo o 43 ERENET Profile Vol. IV, No. 4. www.erenet.org

o ooo o c o cooo 2.5. Related and supporting industries ooocccoocoo cooccooocccocoo cco ococ coooooooc ooocoo ocococcoocoo cocoocoooooo ooooooocooo oooooocooooo 2.6. Clusters coccocoocooc c o c c oco o ooooocooococc oococccoooooco oocococoo ooccooo oocooococoo coccoccoo ooooooc oocoocco oococco coo o o o o c o o co ccocooccooooocooo cooooooooc occ

2.7. Overall evaluation of business environment ocoooooo ccoooocoocc ocooccccooocoo ooooocoo occ Positive Future

impact threat Cost of doing business (real estate, wages and utilities) 1 Quality of transportation 2 Specialized facilities for research 3 Qualified scientists and engineers 4 Transfer of knowledge from research institutions 5 Communications infrastructure 6 Available pool of skilled workforce 7 Quality of K-12 education 8 Sourcing of employees from advanced educational programs 9 44 ERENET Profile Vol. IV, No. 4. www.erenet.org

Access to capital 10 Demanding regional customers that provide feedback 11 Specialized needs of regional customers 12 State/local regulations for production processes and products/ services 13 State and regional environmental /safety regulations 14 State and regional tax and incentives for investment in R&D 15 Predictability of government policies 16 Government’s overall responsiveness to the needs of business 17 Level of competition in your industry 18 Quality and in-region location of your suppliers 19 Assistance from regional suppliers for new product and process development 20 Relationships between firms and organizations in your cluster 21 Participation with regional institutions in R&D efforts 22 ooocooooo ccooooocoo ocoooooooooco ooooococccoc oooocooooo oocooooocooo oooccocoo ooooooocoo oco c o co o c ocoooococ ooooo ocoocoooc ocoocoocoo co 2.8. Regional connections occoocoooococoo ocooooco o o c o o c ooo o o o coocoooooco oocoooccococo o o co o oc oc o co o o o o o o o o o o cocoooco o o o o co o o o cococococooocoo cooococo oocooocoooooo oooocoocc

45 ERENET Profile Vol. IV, No. 4. www.erenet.org

o co o o coco o o o o o o coooooco ococoocooo ocoooocooocoo ocoooocoococ o o o co o o o o o o co o o o c c o o co o o coco o o o occooooocc ocoocooocooo coococoooooooo cocooooo oooooo occo o c c c o o o cc cooooooco cococoooo ccocoooo coooocoocooco oooccooooooocoo ooooocoo cooococcocoooco cooo o coc o c cooocooococoo oo co cc oo co o co o o o ocooooooo c o coco o o co oocoooooooo ccooooococ o c o o ococoocoooo coooocoocoo oocoooc ocooocoooo o oc o o co o c cc o o o o c o oc o o o oo o o o oocooooco oooocoooc coo c o c o co o o c ooooococcooo o o oco o c ococoooo oocoooco ooocooocooc

3. CONCLUSIONS oococooc ooooooooc 46 ERENET Profile Vol. IV, No. 4. www.erenet.org ooooooocooooo ococccoooooo ocoococo ccocoocooo coococoocococo oooooo oc c o c o coocooco c o o o o o o o o o oo o o c co o o o o o o coc coocoococo ococooooococ c c c o o o o o o coooco REFERENCES: o oo o oooooo o oo co oooooo o oc o o o co o oc ocooooooco ooo oo o oc ooooc o o occoococo c o oc o oc oc ooc ooooo oc oo ooc ooco ocooooco oooo o o oo o oo o o oc o oo o o o o o o o coo oooocoo coo 47 ERENET Profile Vol. IV, No. 4. www.erenet.org

Peter Szirmai - Katalin Mihalkov Szakács o oo cco

CONGENITAL VALUE-CONFLICTS OF FAMILY BUSINESSES – THEORETICAL BACKGROUND

Introduction

cocco o o coc o o o o o o ocoo oc o o oo o o o o o o oooooooooo ccooooocooooc coooooooo oooooo coc o oc c oocooco o o o oc o o o c o oc ocooc c o oooccoco ccoooococ ccooooo ccoo ooocooooc oocoo ooccoococo ocooco ooccococcoococo ooooooooocco ooocooocc occccooocoo occocococooo coocooocc c o co c o o co o o o ooooooocoooo o o o o oo o c o o o oo o o c coco c o oo oc cooococoococo ccoo

Value category-pairs oococooco ccoccooocoocooco ooooocooo cc o cc o co 48 ERENET Profile Vol. IV, No. 4. www.erenet.org

oooo cccoo Chart 1: Value-category pairs

BUSINESS FAMILY (ENTREPRENEURSHIP) Producer unit Consumer unit

No free lunch Only free lunch

Main value: profit Main value: love (togetherness) Organizational hierarchy Congenital hierarchy

Organizational culture Ethical culture

Consumer-orientated roles Partner-orientated roles

Relations on contracts Relations on confidence

Succession: by profession and Succession: by congenital contracts privilege Stress on tasks Stress on the relations between the members of the family cooocoooo c c o o o c oo coooo occoooocc o c o o o co cocoocoo cooocoooo cooococoooo Producer unit – Consumer unit cocoooocco o o o o o o o c cocooooooooo ooco oocooo o o o o c o o oooooocooo ooocco oooococococo cccoccoooccoco

20 Holding up as a model Marx’s example on the market price we may state that the price of a product is determined by the price of the labour, needed to reproduce that. At the same time we can hardly find any product, priced according to this method. The concrete prices are sometimes lower and sometimes higher in deed (Marx, 1894). 49 ERENET Profile Vol. IV, No. 4. www.erenet.org

coococ oo No free lunch – Only free lunch oocoocccoo o oc o oc coo o o o cocoooooooo ocoo o c o oo o cococcooocco oo c o co c o c o co o ocooccocooo co o o ooo co o c o o o oo o c cocooo Main value: profit - Main value: love (togetherness) c o c o o cooooocco oc ooocoooco ooooocoo ooooocoocccc ococco ooooccoc ocoooooo oocccocoo Organizational hierarchy - Congenital hierarchy occooococoo c o o co o o ooccocoooo ooocccocco ococooccooooo cocoooco coooccoco cooccocoo oocooooooo ccoooooooooo co cooooo oooooo Organizational culture – Ethical culture oo o o c c coo o c oo o o o c c cooooccoco coooccoo

50 ERENET Profile Vol. IV, No. 4. www.erenet.org

cocoooo oooooo ocococooocooooo coocooocooc o c coc o o c o oo coo o co o o ooooco ccococo oocoooococc ocoococooooo o o oo o cc oo coooocooo oo coc o o o o o c o c c o c c coo c o o coco o oooooo occooo coocoooooooc oococoooo ccoo Consumer-orientated roles – Partner-orientated roles oocooocoo ooocoooo ccoooooc ooooooocoooo ocooooocc ocoocoocoocooco oococo ocoocoo coococccocc coccoooooo ooooooocooc c Relations on contracts – Relations on confidence ooooco oooocooo occoooooococo ocooooo ooocooooo ccccoooo oc oooooo oocooooo o co c coc oo o o c o coc o o co o c c coc Succession: by profession and contracts – Succession: by congenital privilege o o cco cco o oo oooooccoo 51 ERENET Profile Vol. IV, No. 4. www.erenet.org

ooooocoo oo oooooocooo c cco o o c o cccoooccoo coocoooocooo cocoooocco oocococoococ coocooococ ooc ooocoooo coooooocco ccoccoocooco coooocoo cocoocoooo coo Illustration 1: Potential forms of succession

Both the ownership and the control remain in the family

The ownership remains in the family, but an external person

controls

The company is sold to a joint owner

The company is sold to an employee

The company is sold to an external partner

Does not know yet what to do

Enclosing the company

Else

Stress on tasks – Stress on the relations between the members of the family cooocoo oocooooooco ooooo ocoocooococ coooococcooo o o c o c o cccoco Conclusion ooocoo ococooooo ocoocccoooo cooccocoooooco

21 The legal regulation of sole proprietors is an interesting and important question of the Hungarian rule of law. In case of the sole trader’s death his or her widow or widower can inherit the business even if he or she does not possess the necessary skills. Of course, this time he or she has to employ somebody with the required skills. 52 ERENET Profile Vol. IV, No. 4. www.erenet.org

oocoocco oocooccoococ oo - oo o coco o o co - o o c co - ocooocoo ooocooooo - ooccoo ocooco References o o coo cccoocco ccoc oocoocoo

PHOTOS FROM THE 4 th ERENET ANNUAL MEETING IN BELGRADE oooc co ši o ccoo ocoo co 53 ERENET Profile Vol. IV, No. 4. www.erenet.org

PH.D. THESIS SUMMARY Attila István Petheő o oo oco

BEYOND CORPORATE SOCIAL RESPONSIBILITY: THE SOCIAL ENTERPRISE 22

THESIS SUMMARY ooo 1. PREVIOUS RESEARCH AND IMPORTANCE OF THE RESEARCH TOPIC

oc coco c o o o co o oc c o oc coo co cococcocc oo o oc o co o ooco oocooo coooocooccoo o cc oo oc o cooc oc o c o co c o oc oooooooocoo ccocooooooocoo coooocoo ooocccoooooc coco o c oo o o oo o ooo ooocoo Not-For-Profit Research Group Éva Kuti László Harsányi o ooococooc ccoooococococ oooccocoooc o oooooo c c o oc ocooocccco ooooocoo ooc cooooooccoooo coo Éva G. Fekete, Mária Frey Anikó Soltész ooc cooocooo

22 Supervisor: Péter Szirmai, Associate Professor, Director of the SBDC 23 The word social has, in this thesis, a meaning different from its usual content. Under a social enterprises we understand an activity which bring an actual improvement in the welfare of a society.(Kotler–Lee [2007 ]). This type of activities is not identical to the activities of the welfare system. 24 European Confederation of Workers’ Co-operatives, Social Co-operatives and Participative Enterprises. 54 ERENET Profile Vol. IV, No. 4. www.erenet.org

ooooco oooccoocooo o o o Appendix 1. o o o cooo oocco cococc o c o c o c o o ooo ocooocco co c o coo o c cooooo oooococo ocooocooccc ooooc The further objective of my thesis is to offer guidelines to the state organs, the economic sector and NGOs to further develop and improve the reach of their programmes promoting social enterprises. I believe the programme components proposed in my work to be building bricks from which each enterprise or institution may develop its own programme as part of its comprehensive SME-policy. oocoocc oocooo co o c o oc co o oc o o ocoooooc ooooooccooco ooooo oooocoooo cooccoooc co ooooocooooco oooo oc • not-for-profit oo • o meet social aims by engaging in economic and trading activities • cccc not in the ownership of individuals in trust o benefit o o o o o cooc • oocccoocoo co-operative basis ccoo • ococccoco mutual co-operation oooco cco o co coc o ooccoo oooococo ooococoocc oocoooooooco ccococo oooocoo occoo o o oc c o oc o o o cooooocoocc

25 I.e. [2007 ]: Study on Practices and Policies in the Social Enterprise Sector in Europe. 26 The Contribution of Social Capital in the Social Economy to Local Economic Development in Western Europe, Report 3: Social Audits of Social Enterprise: Methodology ( www.conscise.mdx.ac.uk ) 2001

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o o o o o oo c oo o o o co o o c o o o ooocoooo oocooooooc oooocooo o oo o c o c oo ooco ocooocoo ocoocoooocco c o c oc o ocoooo Social sensitivity and values may also be developed up to a certain point, but I do not take them as things that may be purchased or substituted. oooooc ooococcco ooc entrepreneurial performance ═ skills x motivation. coo cocooooooo

2. METHODOLOGICAL PRINCIPLES oooocc cooooccoo cooocoocooo c o o o o co o c oooococo coooc co o five larges umbrella organisations c ooo oocoooococo Not- For-Profit Human Service Providers o o o o o oo o o oo c o oocooccoooooooooo coooo Civil Employment Workshop National Employment Foundation oocccoooc o o o oo Equal program’s ooo ooccooc Social Entrepreneur coocooo ooccoccococooooc ocooccoocoooo cococ ooocccoo coc ooc cooccocoooo ococcocc oo o o o c o o oc o o o o o o oc o o o o cooocooocoo oooooooco ooooooooco ccooc ccoococcoc o o o c o oo o cccococoooc

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o o o o cc o co o o ocoocooooooo coco coccooo ooccccoo ooococococ oo o o o ooooocooo ocoooco oococcoococoo c o co o oo o ocooo oo coooooo ooooooo o Appendix 2 o o o coc oo o coccocccoooo cooooo oo o co o oo o co c co ccooooco cc

Table 1. Time plan of the 2008 research

No.. Work phase Time

ocoo o ocoo c co o c c

3. STRUCTURE AND MAIN FINDINGS occooooc co cooc oc o c coc o o o ooo o o o o o ooccooococcoo coooccocoooc c o o cc o c o c c o o c o c o ooooocooc oocoooo cococccooo ococooooocco cocooocoooooco oooccoc Thesis1. The ‘traditional’ entrepreneur surpasses the average, social entrepreneur in both skills and motivation. cco o o c oc o o o o c oo o o c co c c o c o ocoocooooo 57 ERENET Profile Vol. IV, No. 4. www.erenet.org

ocooccoccooo cooocc coooc

Thesis2. Social enterprises are different from traditional enterprises due to their different genesis, and they face far more complex challenges. cooo oooco ooococoooo oocoocoooo oocoo ccoooccoco ococco ooooocoo oo c o c oc c coo o co o co co c o oooococooco o coooco ococoooocc oooooococo ooccoocoo ococooo oocooooo ooooccoooo occocooooco c co o cooo cc o o oc ooooooooc

Thesis3 . Social enterprises can not effectively and economically attain economic and social policy objectives. cooocoooc oocoocccc ooooooocoo c o o o oo o co o ccooccooo ocococoooooc co o o o oo o oo o c occococooccocc ocoocooocooco o c o o co oocococooo co c o c o oc o co o co o oocooooocoooo ooccoooooccooooc o c oc co o o o o c oc coooocooocoo ooccoooo o c oc o o o o oc o o c cooocooc oo o o o o o o o o

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Thesis4. In order to deepen their effect, social enterprises need considerable investment in organisatorial development: in developing their management, workforce, and in setting up their monitoring and evaluation systems. oooccoocc o o o o oc o cocooooo McKinsey cco oc Renascer, ooococoo Boston Consulting Group oooo Childline of India oo coocoo ccoooooccooooo ocooooocooooo ooooocoooooo ccooooocococ o Thesis5. Social entrepreneurs with traditional entrepreneurial experience accept risk more easily, and it doesn't cause them a moral problem to ask money for their activities. ooccoocoooc ococcooco oooocooooooooc oooooccooccccooco ococcocococ c oc o o oc oocccoco occooc co o c o c oc ocoocoo ococoooococoo occo oo o oc o o oo Thesis6. Despite the misbelieves, there are many examples for the success of co- operation, and everyone acknowledges its importance, furthermore, joining forces, collaboration, and partnership are frequent in practice, too. ooooocoooo oooooooocccooo o o o o c oo oo c c o oococooooooooc o oo coc o o o o oooocooo oocooocooo ocoocooooo occooooooo ooococ ocooooooo oooooocc oooooocooocooc . coooooooooc cooocooo cooococo ooooco 59 ERENET Profile Vol. IV, No. 4. www.erenet.org

ocoooooooo ccooooo ococcoccc oooc

oooooo o co o o coocoococ o oc c oooccoocococo o o c o o o o cooooocco ooocooo ooo oo o oco oo ooo cooc co oocccc oc o o o oo o c ooooo ocooooccooo cooooc

4. MAIN REFERENCES

coooco o Entrepreneurship Theory and Practice, o ooSocial Entrepreneurship and Social Transformation: An Exploratory Study. oo o oo o o coo o o o Social Entrepreneurship and Commercial Entrepreneurship: Same, Different, or Both? coo c Szervezeti magatartás és vezetés. o Nonprofit modellek, elméletek, trendek. oo c oo oooooo How to Change the World? Social Entrepreneurs and the Power of New Ideas. oo The Emergence of Social Enterprise ooo o Szociális gazdaság kézikönyv. ooo Fejlesztés és Finanszírozás, coc oo Harvard Business Review. c oo Nonbusiness marketing és menedzsment. o Férfibeszéd: családról és munkáról – kutatási eredmények Nonprofit szervezetek a munkaerőpiacon o o o oc o Köz-jó-lét, cc oc Industry & Higher Education, o Keresztül a fogalmi zűrzavaron oocooco The Nonprofit Sector: A Research Handbook oo Vezetéstudomány,

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co Szövetkezz! – A szociális szövetkezetek előtt álló lehetőségek. oc Social Enterprise in the United States and Europe. o oc Vállalatok társadalmi felelősségvállalása oc o Jogelméleti Szemle, The Nonprofit Sector in Hungary. ocooc CSR – Vállalati felelősségvállalás o A stratégia jövője, a jövő stratégiája Social Enterprise. ooo c Alternatív Kapitalisták o Harvard Business Manager, o ooooo Vezetéstudomány, o Szektor születik oocoo oo A Perspective on Entrepreneurship ooo o Global Entrepreneurship Monitor (GEM) 2005 A vállalkozói aktivitás és a vállalkozást befolyásoló tényezők alakulása Magyarországon az Európai uniós csatlakozás után. c o oo Szemelvénygyűjtemény a kis- és középvállalkozások a magyar és nemzetközi gazdaságban c. tantárgyhoz o „Másért vállalkozók” – avagy alkossuk újra a vállalkozás fogalmát! co Vállalkozás – Az ötlettől az újrakezdésig. o The Nonprofit Economy Entrepreneurship in the Social Sector co o Ökológia – gazdaság – etika. o oocoococo o Competitiveness and Corporate Social Responsibilityooo co

5. AUTHOR’S OWN PUBLICATIONS IN THE TOPIC a. Articles Szociális szövetkezet, avagy visszatérés a gyökerekhez, o Innováció a kreatív oktatásban oo A magyarországi kis- és közepes vállalkozások digitális tevékenysége az Európai Uniós csatlakozás tavaszán o Milyennek látják önmagukat és másokat a leendő brazil üzletemberek? o b. Book chapters Primavet, egy felelős állatklinika esete oo o Taufer eset oo c. Important research results

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oVállalati társadalmi felelősség és a kis- és középvállalkozások c Vállalati Társadalmi Felelősség és a Shell Üzletre Hangolva o Fejlődés és növekedés a KKV-k világában, gátló és segítő tényezők empirikus megközelítésban d. Essays and conference papers Útmutató a szociális vállalkozásokhoz ooooc A Szociális vállalkozás definíciói Szociális Vállalkozások oc ocoo oc Szociális vállalkozások megjelenése Magyarországon o Vállalatok társadalmi felelősségének kisvállalati relevanciája oo A közösségi vállalkozások terjedése Európában coc Kis- és Középvállalkozások (KKV) a profitérdekeltség határán, avagy vállalkozások a határon innen és túl oc „Az vagy, ahol dolgozol?” – A CSR és a HR - A felelős vállalatirányítás (Corporate Social Responsibility) és a munkatársak c oo oc o Legjobb magyar CSR gyakorlatok c oooco e. Articles, conference papers, research results in foreign language Study on Practices and Policies in the Social Enterprise Sector in Europe, Country Fiche Hungary, ocooo oSocially responsible practices in SMEs o The Emergence of Social Enterprise, oc The place of Social Enterprise in field of Entrepreneurship theory o ocoooc o Corporate Social Responsibility (CSR) Practices by Small- and Medium-Sized Enterprises (SMEs) in Hungary, cooocc The emergence of Social Enterprise in the Hungarian non-profit sector, oco c o VIVACE program in „Benchmarking National and Regional Support Services for SMEs in the Field of Intellectual and Industrial Property” oo Overview of Family Business Issues ooc occ Teaching Entrepreneurship in Hungary oc The Interaction between Local Employment Development and Corporate Social Responsibility ooc Comparing successful Social Entrepreneurs and Socially Responsible Entrepreneurs in Hungary - similarities and differences co

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CONFERENCE PAPERS

WORKSHOP on “Women and Entrepreneurship”

organized by:

ORGANIZATION OF THE BLACK SEA ECONOMIC COOPERATION (BSEC) and KONRAD-ADENAUER-STIFTUNG (KAS)

3September – 2 October 2009 LEOGRAND Hotel Chisinau/Moldova The Workshop on “Women and Entrepreneurship” was held in Chisinau, the Republic of Moldova, on 30 September-2 October 2009. It was jointly organized by the Permanent International Secretariat of the Organization of the Black Sea Economic Cooperation (BSEC PERMIS) and the Representation of the Konrad-Adenauer-Stiftung (Foundation) (KAS) for Turkey, in cooperation with the International Center for Advancement of Women into Business (ICAWB). 27 Welcoming statements were delivered by Ambassador A. Sumru NOYAN, First Deputy Secretary General of BSEC PERMIS; Mr. Jan SENKYR, Resident Representative of KAS for Turkey; Mr. Sergiu SAINCIUC, Deputy Minister of Economy of the Republic Moldova; Dr. Valeriu GHEORGHIU, Deputy Director of Department of European Integration, Ministry of Foreign Affairs and European Integration of the Republic of Moldova; and Ms. Tatiana BATUSHKINA, Chairperson the Board of the International Center for Advancement of Women in Business (ICAWB). 1. In her statement Ambassador NOYAN formulated the aim of the Workshop to review the current situation of women entrepreneurship in the BSEC countries. Promotion of women entrepreneurship is beneficial for the economy, as women leaded enterprises are the driving forces for job creation and economic growth. But still the topic of women entrepreneurship has been largely neglected both in society in general and in social sciences. The conditions discriminating against women’s possibility to become entrepreneurs need to be addressed by policy makers. Governments should facilitate entrepreneurial endeavors by women in the economy. The ongoing global economic crisis necessitates addressing issues related to women’s entrepreneurship even more. The SMEs stand most vulnerable to the crisis and the situation is especially difficult for women entrepreneurs. Therefore, Ambassador NOYAN quoted from Aesop: “Together we stand, divided we fall.”

27 Remark: oooocoo oooo

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2. Mr. J. SENKYR welcomed the participants of the Workshop on behalf of KAS. He emphasized the importance of cooperation between KAS and BSEC and mentioned that KAS has been working with BSEC for 13 years now. This is the 39 th joint meeting aiming at the support of SMEs in the region. The aim of BSEC-KAS collaboration is the strengthening of the political dialogues between the actors and decision makers for SME policies in the different BSEC countries, the exchange of experience and information between the SMEs themselves and the fostering of a better understanding between entrepreneurs and state institutions. 3. Mr. S. SAINCIUC , Deputy Minister of Economy of the Republic Moldova, in his opening address stated that the new Government of Moldova recognizes and appreciates the importance of involvement of women in business activities for the benefit of the country. Particularly important is the participation of women in the SMEs entrepreneurship, which is the engine of national economy generating new jobs and growth in the period of the economic crisis. The SMEs sector in Moldova comprises 41,000 enterprises which represents 97.6% of the total number of enterprises. This sector employs 57% of the total number of employees. SMEs generate 35.5% income to the country’s GDP. In April 2005, the project “Promotion of Women Entrepreneurship in Moldova” has been launched with the financial assistance of the German Agency for International Development (GTZ). The beneficiaries of this project are women from Chisinau and neighboring districts which are offered assistance in development of entrepreneurship and for start-ups. Already 50 grants have been offered to the beneficiaries. 4. Dr. V. GHEORGHIU highlighted that the issue of the Workshop is rather challenging- on the one hand it is related to the activities of the SMEs in the period of the ongoing economic and financial crisis and, on the other hand, the position and role of women in running the small business. He mentioned that there is a need for government programs and private sector services to be more efficient in meeting the needs of the owners of SMEs in general and women-owned SMEs in particular in the Republic of Moldova and in the BSEC region in general. There is necessity to improve the environment of SMEs, because they generate growth and employment. Women bring fresh motivation and promising innovation. Women fit better into the new service society than in the old industrial society. Women that run SMEs represent the vivid example for a strategy to build a future without discrimination. Women’s participation in any kind of economic activity is complementary to their social and family duties. This approach must be supported by the Governments. 5. Ms. T. BATUSHKINA drew attention that new thinking in required for pushing women into business. Presently, women entrepreneurship is 1.5 times more dynamic as of men. The share of women in business today is already 25% and women entrepreneurs are getting younger (currently between 24-35 years old, while a few years ago mostly middle-aged women were running the business). However inclusion of women requires restructuring of thinking. Women are infected by psychological factors due to gender relations. For this reason they need support in the start-up period.

FINAL DISCUSSIONS AND CONCLUSIONS The following points were made in CONCLUSIONS: 1. The aims and strategic objectives of the 4 th UN Conference on Women held in 1995 in Beijing are still valid.

2. Fostering women’s entrepreneurship is one of the strategic directions for action in the economic area adopted by the European countries at the UNECE regional Preparatory Meeting held in 2000 in Geneva. However the international organizations do not foster cooperation in this field.

3. The EU with the European Economic Area and the candidate countries has been launched a promising program to promote women’s entrepreneurship via WES Network, network of Female Entrepreneurship Ambassadors and Women’s Entrepreneurship Portal. 64 ERENET Profile Vol. IV, No. 4. www.erenet.org

4. The full potential of women’s entrepreneurship still remains untapped.

5. According to the Global Entrepreneurship Monitor (GEM) 2007 Report on Women and Entrepreneurship, a significant gender gap exists with respect to new enterprise/SME creation and ownership.

6. In the Black Sea Economic Cooperation region 350 million people live. They differ from each other in terms of their level of development, size, population, political priorities and aspirations. The Foreign Trade Capacity is 96 billion U.S. Dollars. Though finding common denominators is not always possible, they can always benefit greatly from the exchange of best practices. Unleashing the untapped potential of women in our region is of common interest for the sustainable economic development of all Black Sea countries. The situation of women in all the countries of our region needs to be ameliorated. There is still a big gender gap in all domains of life.

7. According to FOB - Factors of Business Success - Survey made in 2005, 28% of EU entrepreneurs were women and 72% were man. It is remarkable that 1/3 of the self employed entrepreneurs consists of women, both in Germany as well as in Moldova.

8. The objectives for women’s motivation for employment include: - economic independence based on steady income and prestige associated with paid job; - lowering the negative economic consequences of divorce and male unemployment; - assuring old age security.

9. Entrepreneurship: - contributes to economic growth; - leaps in human progress; - offers potential of greater wealth and upward mobility; - provides an alternative to wage employment; and - creates jobs.

10. The major personal characteristics of entrepreneurship are: - being able to take risky decisions; - being able to predict and foresee; - realizing the things that other could not have realized; and - showing effective leadership and having positive courage.

11. Unfortunately, the topic of women’s entrepreneurship has been largely neglected both in society in general and in social sciences.

12. Research shows that there are psychological barriers faced by women to change their involvement in the entrepreneurial process. Such obstacles are opportunity identification and utilization, type of education, lack of equal opportunity, discrimination, access to finance, lack of role models, etc. These obstacles need to be addressed in policy making process.

13. The main problem in developing female entrepreneurship is lack of business information and access to financial resources.

14. Women do not have conventional and formal network opportunities in the majority of BSEC countries.

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RECOMMENDATIONS Although during the past decade a lot of actions were taking place in encouraging women to run their business, much more needs to be done to overcome specific factors which discourage women in particular from starting small firms. Following recommendations were made:

1. A forum could be established to bring together all women’s entrepreneur organizations in our region. The Black Sea Economic Cooperation Organization may be the leading force in this process.

2. Prepare an Action Plan for Women Entrepreneurs in the region which could serve as a road map for future collaboration.

3. BSEC shall consider having the topic of women entrepreneurship as a permanent agenda item within the Working Group on SMEs.

4. Make use of the Black Sea Trade and Investment Promotion Program (BSTIP) to convene the matchmaking events within the countries, support countries women entrepreneurship policies, and utilize EBRD and other resources for credits to women-owned businesses. • development of women entrepreneur networks should be promoted. Policy makers in BSEC region must foster the networking of associations; • the real situation of female entrepreneurship should be analyzed on the basis of correct information by involving all stakeholders operating in the business process. The Entrepreneurship Research and Education Network among the universities in CEE (ERENET) is requested to elaborate a harmonized questionnaire on women’s entrepreneurship. The findings of the joint research could be discussed at one of the next BSEC-KAS workshops.

5. Create a business friendly environment with special focus on small and medium-sized businesses owned by women entrepreneurs.

6. Increase the ability of women to participate in the labor market by ensuring the availability of child care and equal treatment in job place.

7. Gender dimension should be incorporated in formulation of national SME policies. It should be followed by developing and implementing promotion programs for women’s entrepreneurship.

PHOTOS ON THE WORKSHOP

Opening of the Workhop Ambassador A. Sumru NOYAN, First Deputy Secretary General of the BSEC PERMIS

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Jan SENKYR, Resident Representative of KAS for Sergiu SAINCIUC, Deputy Minister for Economy of the Turkey republic of Moldova

Tatiana BATUSHKINA, Chairperson of the Board of the Antal SZABÓ, Scientific Director of ERENET makes International Center for Advancement of Women in key-note presentation Business

The Moldovan panel Workshop Family Photo

Iris KRONENBITTER , Project Leader of the National Valentina VEVERITA (right) Head of SME Department Agency for Women Start-ups and Entrepreneurs from and Sofia Shuleanschi (Head of Winrock Moldova) Stuttgart (Germany)

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INSTITUTIONAL PROFILE SZÉCHENYI ISTVÁN UNIVERSITY Győr, Hungary http://uni.sze.hu/ http://info.sze.hu/

o occooococo cooc ooc o o o o occ o ccoocococ oocooooo o co o oo coooooo cocoocco occoo oooocc o o o o co o c o c coc o oo c c co coooco

BA International administration BSc Informatics of economics BA Public administration management BSc Mechanical engineering BA Business and management BSc Mechatronics engineering BA International studies BSc Transportation engineering BA Trade and marketing BSc Engineering management BSc Civil engineering BSc Vocational technical instructor BSc Municipal engineering BA Social work BSc Architectural engineering BSc Health management BSc Environmental engineering BSc Nursing and medical care BSc Electrical engineering BSc Music teacher BSc Information technology

MSc Law MA Business and management MSc Architectural engineering MSc Informatics of economics MSc Civil engineering MSc Municipal engineering

PhD Business and management PhD Civil engineering PhD Law PhD Transportation engineering PhD Information technology

ooc o o cc o c o oo ocoo Kautz Gyula Faculty of Economics - http://kgk.sze.hu/ ccocooccoc ooccoocoo ooococooccoo PhD programme.

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oocooooccc c c coococococoo ooco c    co  o c  oocooc  also in English,  ocoo ccoc The ECTS guide coo coo c oc Doctoral School ooccc co coo o oc o oco coo oooococoooo coocccoooccoc ccc coo o o c cc o o coooocooo cooc o o c co coo coc o ccocccccoo coo ccoo  ocooc  oooco  oo  oococ  o  oo cc c o c cc ooooocoo co o cc co o coo o o cocooooo oocococoocoo coococoocooo coocooo o coo cco o co o o oocooooo o o o c o o oo o o oooocc cc c c o cooc cc o c co o o co c o ccoococoooo co o o c c c cc coc oo oo o co c o o oc o o o o o oooccoococococ 69 ERENET Profile Vol. IV, No. 4. www.erenet.org

Department of Economics - http://gtt.sze.hu/ oo ooo coococccocccocooc c c co cocooc c oococooc c c oc o o cooc o c oc o cocooc c c c oocoo Photo by Dr. Antal Szabó ©

Count István Széchenyi , in Hungarian: Gróf Széchenyi István (21 September 1791 – 8 April 1860) was a Hungarian politician, theorist and writer, one of the greatest statesmen of Hungarian history. Széchenyi was born in Vienna. The Széchenyi were an old and influential noble family of Hungary. He gained wider reputation in 1825, by donating the full annual income of his estates for the establishment of the Hungarian Academy of Sciences . This was an important milestone in his life and for the reform movement. He supported the construction of the first permanent bridge between the two cities, which nowadays bears his name as Széchenyi Lánchíd (Chainbridge).Lajos Kossuth, the leader of the 1848-49 revolution called him as “The Greatest Photo by Dr. Antal Szabó © Hungarian”.

Gyula Kautz (5 November 1829 – 27 March 1909) Hungarian economist graduated at the Faculty of Law and Poliotical Sciences of the Pest University, where he took doctoraite in 1850. He visited the universities in , and Leipzig. His work on Theorie und Geschichte der National-Oekonomie considered as a major source of modern economy. Between 1904-1907 he served as Vice-President of the Hungarian Academy of Sciences. He was member of the Société d' Economie Politique in and the London Institute for Statistics.

Portrait of Gyula Kautz adapted from Wikipedia ©

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CHAIR OF ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT Schumpeter School of Business and Economics

The Chair of Entrepreneurship and Economic Development at the Schumpeter School is at the heart of the university’s thrust to live up to the idea of an entrepreneurial university with an international footprint.

Since 2001 the University of Wuppertal (Germany) is leading in well-known rankings for the best entrepreneurship education in German higher education institutions. Over the last decade following the idea of an entrepreneurial value chain from first thoughts about an entrepreneurial career to hands-on business formation and spin-off activities we have created a blend of differentiated entrepreneurship courses. Our offers are tailored to university-wide target groups – business students as well as students and faculty from engineering, science, architecture and design.

We are integrated in bizeps, a regional new venture support network where players from inside and outside the university team up to support entrepreneurial ideas and projects (e.g. local business development agencies, technology parks, banks, consultants etc.). The bizeps project, which started in 1998, has been funded by the German Federal Ministry of Education and Research within the EXIST programme (a large scale, multi-million Euro initiative to promote university entrepreneurship at the national level). Our latest bizeps initiative focuses on entrepreneurial gazelles and serves to support university faculty and students to generate venture opportunities and develop high-growth technology ventures.

In entrepreneurship research and enterprise policy projects the Chair and our iEntire institute (Institute for Entrepreneurship and Innovation Research) work in numerous areas at various levels – for example: • Contribution to the World Economic Forum’s effort to educate the next wave of entrepreneurs (white paper together with the US-based National Foundation for Teaching Entrepreneurship and the University of Cambridge’s Centre for Entrepreneurial Learning) • Project on start-ups in the clean tech industry for the German Federal Ministry of Environment (together with the Wuppertal Institute for Climate, Environment and Energy and the University of Potsdam) • Membership in the expert group report “Entrepreneurship in Higher Education” for the European Commission (Enterprise and Industry Directorate Generale) • Co-operation projects with UNESCO’s CEPES branch to promote entrepreneurship education in Eastern Europe.

We have a global network of regional, national and international partners and enthusiastic students and welcome new partners to jointly promote entrepreneurship projects in research, teaching and industry collaboration, both on a national and global scale. To learn more about our activities in supporting the formation and prosperity of new ventures follow the links on the left.

Kontact: Prof. Dr. Christine Volkmann, Fachbereich B Wirtschaftswissenschaft Schumpeter School of Business and Economics, Gaußstraße 20, 42119 Wuppertal Tel: 0202-439-3982, Fax: 0202-439-2464 Email: [email protected]

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Teaching Portfolio – Bringing Entrepreneurship to People within the University

The teaching portfolio in entrepreneurship blends different approaches to develop students’ expertise as well as social and hands-on managerial competences to start and run their own businesses. Moreover, participants learn to evaluate novel venture ideas and business models as well as public enterprise policy initiatives and suitable institutional conditions for entrepreneurial prosperity. For example, competence building includes: • working on entrepreneurial case studies in interdisciplinary student teams • developing and evaluating venture opportunities • compiling business plans • teaming up in business simulations and role plays • solving real business problems in student consultancy and business creation projects ( Science.Vision e.V. / Sife).

The courses have been designed for students from different faculties and disciplinary backgrounds such as science, engineering, architecture, arts, and business studies. A major element of our approach to entrepreneurship education is to go beyond those who are already in the process of founding their own business. We also address students and graduates as future opinion leaders who, in their later careers, may be important stakeholders to start-up businesses, e.g. as journalists, consultants, bankers, politicians or educators. This wider approach to entrepreneurship education strives to develop entrepreneurial mind sets in future generations of academics. This approach is reflected in our course modules in entrepreneurship sketched out below, catering for participants from economics and business studies. The modules zoom in on three distinct areas of entrepreneurship: • issues in entrepreneurial management in the context of new business formation and development (Module I) • institutional and legal challenges of company formation, sale, and succession; innovation and IPR (Module II) • institutional entrepreneurship; the role of entrepreneurs in industry emergence; entrepreneurship and economic development (Module III)

Module I Entrepreneurship and New Venture Management New Venture Creation and Management Entrepreneurial Management and Business Development Case Studies in Entrepreneurship

Module II Legal Aspects of Entrepreneurship Labour and Company Law for Entrepreneurs Legal Aspects of Company Succession, Mergers and Acquisitions Industrial Property Rights in Entrepreneurship

Module III Entrepreneurial Economics Evolutionary Economics Entrepreneurship and Market Development Global Entrepreneurship and Competition

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CALLS – EVENTS – NEWS

EENNTTRREEPPRREENNEEUURRSSHHIIPP DDEEVVEELLOOPPMMEENNTT CCOONNFFEERREENNCCEE

Entrepreneurship Education and Business Creation programmes have equally received growing international attention. The impact that these programmes can have on sustainable development is recognized, yet the achievements are regularly debated. Triodos Facet , SPARK and INHolland University of Applied Sciences argue that much is to be learnt from entrepreneurship development programmes in all parts of the world. Whether these are conducted in developing, transitional or developed countries; it is the entrepreneur who is challenged daily!

We invite you to contribute, learn and get connected with peers at the Entrepreneurship Development Conference in Rotterdam: Do Entrepreneurs need support? The myths and merits of entrepreneurship education and business creation.

29 October 2009 : Seminars & interactive workshops.

30 October 2009 : Experience learning through site visits & in-depth discussions.

The conference will allow for extended networking to find new linkages and opportunities in the light of entrepreneurship development. We offer inspiring speakers and the interactive workshop program will promote a learning and problem solving environment.

You are invited to contribute on issues that you believe should not be overlooked. Also, we call for Entrepreneurship Education tools that can be demonstrated in practice. Go to our website www.eD2009.org to find out how you can benefit from this conference and how your experiences can contribute to this conference, your organization and other participants.

Contribute by submitting your own workshop on issues that you believe should not be overlooked. Submit a brief outline to [email protected] and we will contact you asap.

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nd 323232 ndnd Institute for Small Business & EntrepEntrepreneurshipreneurship ConferenceConference

Celebrating 3 decades of excellence in education, research and practice: at the cutting edge of international entrepreneurship

3 – 6 November 2009 – Novas Centre Liverpool, UK

The Institute for Small Business and Entrepreneurship are set to hold their 32nd Annual Conference on the 3 – 6 November 2009 in Liverpool. The Conference, which annually attracts up to 500 delegates from across the globe, looks to give an opportunity for researchers, educators, practitioners and policy makers to watch, discuss and debate the engage the cutting edge research into small business and entrepreneurship to be showcased, discussed and debated. The event also gives a superb opportunity for networking. ISBE are delighted to have received an unprecedented number of papers which have been carefully reviewed and selected to afford 240 quality papers to be presented at the event on the subject of Small Business and Entrepreneurship. This year papers include Academic Refereed Papers, Working Papers, Practitioner Papers and Case Studies and cover ten key topics which are as follows: • Learning for Entrepreneurship and Enterprise Education • Business Creation and Development – Stimulating Start-ups • Creative Industries Entrepreneurship • ICT, IT and E-Business in the Small Firm Sector • Gender and Enterprise • Entrepreneurship, Networks, Innovation and Resource Acquisition • Management, Skills Development and Growth Issues • Social, Environmental and Ethical Enterprise • Venture Capital, Finance, taxation and Regulation • Business Support and Internationalisation

In addition to the quality papers ISBE have secured a Key Note Speech from Serial Entrepreneur Jonathan Hicks CEO of DirectorBank and a debate panel discussing the subject of Recession Coping Strategies for Small Businesses. In addition we have a number of interactive workshops covering topics including; How will we create the new jobs?, Meeting the editors and the reviewers: Easing the path to publication’ & Entrepreneurial activity in an economic downturn: Revisiting the Evidence Base. This year we shall also be introducing a wrap up session on the Friday which will give an overview of all of the key papers which were presented during the Conference.

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For further information about ISBE please visit the ISBE’s new website www.isbe.org.uk INTERNATIONAL CONFERENCE «Innovations & Investments: Efficient Basis for Competitiveness of Russian SMEs on Internal and International Markets»

BUSINESS FORUM «Russia - Europe: Cooperation without Frontiers»

PRESS-RELEASE On 9 November 2009 the Chamber of Commerce and Industry of the Russian Federation supported by the Ministry for Economic Development of the Russian Federation and the Council of Federation of the Federal Assembly of the Russian Federation with participation of the Moscow city Government, is holding an International Conference «Innovations & Investments: Efficient Basis for Competitiveness of Russian SMEs on Internal and International Markets». It is expected that representatives of Russian and foreign SMEs will be present as well as Russian federal, regional and municipal authorities; unions of entrepreneurs; Russian regional Chambers of Commerce and Industry; regional SMEs support agencies; science, research and education organizations; investment companies; financial and credit institutions; venture funds and business-angels; international organizations and mass-media means. The Conference will be focused on identifying and analysing SMEs problems as well as efficiency of the State support to the sector in terms of investment attraction, innovation development and entering foreign markets. It will also determine further support measures to develop and increase SMEs’ competitiveness on internal and international markets. One of the main targets of the Conference will be to synergy efforts of entrepreneurial community, SMEs support infrastructure, science and research institutions, universities and state authorities to elaborate and implement concrete measures, inter alia legislative, related to developing innovation and export-oriented sectors of the Russian economy based on SMEs. The Conference will also pay due attention to the cooperation of Russian SMEs with international business community which is considered to be one of the instruments of supporting development of small and medium size entrepreneurship in Russia within the framework of the world economy globalization process. The Conference will elaborate Recommendations on developing efficient instruments to supporting small and medium size entrepreneurship and to creating favorable environment for SMEs growth. The Recommendations will be addressed to the State leaders, heads of federal ministries and institutions, Russian parliament, regional governors and municipal authorities, unions of entrepreneurs, regional Chambers of Commerce and Industry and will be provided by organizers’ web-sites and to mass- media. International Conference will be held on 9 November 2009 at the CCI RF: 6, Ilyinka Street, Moscow. In addition, on 10 – 11 November 2009 a match-making Business Forum «Russia - Europe: SMEs - Cooperation without Frontiers» will be held. Such a forum will be the first of the kind to be organized in Russia. The Forum will be devoted to bilateral negotiations between Russian industrial SMEs in different sectors of activities (production, R&D, services provision) with business partnership proposals, including investment projects, and willing to identify potential business partners in Europe, and European SMEs that would have shown interest with regard to Russian business proposals and projects or which, in their return, are offering cooperation to Russian SMEs. Business Forum will be held on 10 – 11 November 2009 at the Moscow Government Universal Exhibition Hall: 36/9, Novy Arbat Str., Moscow. Information is available on the following web-sites: www.siora.ru, www.tpprf.ru, www.atlasinvest.ru Contact details on the Conference: Russian Agency for Support of Small and Medium Business Tel.: +7(499) 783-49-10, E-mail: [email protected] Contact details on the Business Forum: Organizational Committee

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Andrey Akopov, tel. +7-903 267-6998, e-mail: [email protected]

Corvinus University Budapest in collaboration with the European Council of Small Business and Entrepreneurship (ECSB) and ERENET cordially invites you to a Pre- Conference Policy Forum on 18 November, 2009 in Budapest, Hungary, immediately before the main RENT Conference.

Pre-Conference Policy Forum:

ENTREPRENEURSHIP POLICY IN TIMES OF CRISIS

The 23rd RENT Conference will provide a forum for discussing some of the latest research evidence with respect to entrepreneurship and growth. The pre-Conference Policy Forum aims to generate an exchange of views and experiences between researchers, policy makers and practitioners on contemporary policy- related topics. By focusing on entrepreneurship policy at a time of crisis, the Pre-Conference Policy Forum will provide an opportunity to discuss the effects of the recession on SMEs and the responses of firms and policy makers in different parts of Europe.

Most of the discussion surrounding the current crisis has focused on the implications for large businesses and their hiring and investment decisions, or on households and their employment possibilities. One underemphasized aspect of the issue is the impact on small and medium-sized firms and the nature of the responses. Policy responses so far have tended to focus on ameliorating the immediate impacts, with less attention paid to preparing firms for the recovery period.

Preliminary Programme: 10:00 Welcome: • Dr. Thomas M. Cooney, President of ESCB • Dr. Károly Balaton, Corvinus University of Budapest

10:20 Plenary 1: 'Entrepreneurship and the business cycle: a way out of the Bust' (Roy Thurik, ESCB)

11:30 Round Table: Policies for Entrepreneurship at the Time of Crisis (Moderator Professor David Smallbone) Representatives from a number of European Countries. Preliminary speakers: • Mr Zoltán Mester - State Secretary for Economic Development, Ministry for National Development and Economy, • Selection in progress This session will discuss the following questions: • The effects of the crisis on the SME sector,

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• The policy responses of government, • Evidence of the impact of the adequacy of the government responses.

14:00 Plenary session: Criteria for identifying good practice policies, Professor Zoltan Roman

14:30 Round Table: Policies to Promote Entrepreneurship in Central and Eastern Europe: Identifying Good Practice (moderator Dr. Antal Szabó (Scientific director of ERENET, Hungary) • Dr. Péter Szirmai (Corvinus University of Budapest, Hungary) • Desislava Yordanova (Sofia University »St. Kliment Ohridski», Faculty of Economics and Business Administration) • Darija Kristi ć (Center for of Osiek, Croatia) • Dr Eric Dejan (Institute of Economic Sciences, Serbia) • Dr. Zsuzsanna Szabó (Petru Maior University, Romania) • Jerzy Cie ślik (Kozminski University, Warsaw, Poland) • Dr. Marián Gál (Technical University of Kosice, Slovakia) Each speaker will address the following: (i) The aim of their policy/programme (ii) Main activities of their policy/programme (iii) Results/outcomes (iv) Good practice features (with rationale)

16:30 ESCB Policy Network Meeting

Participation at the Pre-Conference is free of charge, however, there are limited spaces.

Participants wishing to participate in the RENT XXIII Pre-Conference Policy Forum to be held Wednesday 18 November 2009 kindly requested to fill this Registration Table below and send to the ERENET Secretary Attila Petheo by E-mail: [email protected] or by Fax: (+361) 482-5408 as soon as possible, but no later that 30 October 2009.

Registration Information Surname First Name Organisation E-mail Phone Address

For more information, please visit

http://www.eiasm.org/frontoffice/event_announcement.asp?event_id=588

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1st INTERNATIONAL ENTERPRISE PROMOTION CONVENTION Harrogate, UK: November 15-17, 2009

The captioned international convention – a major new initiative towards enterprise promotion – will showcase best practice in the creation and development of small and medium- sized enterprises world-wide. It will be an excellent opportunity to exchange views and learn about best practice in enterprise promotion. This Convention will bring together the many organisations in the UK and overseas that specialise in helping individuals to start their own business and then guiding them through the initial development phase to a secure trading position in their own Country and onward into the global marketplace.

WHAT ARE THE TOPICS? A - Advancing entrepreneurship education and training world-wide B - Business creation & development - stimulating start-ups C - Community, ethnic, minority, rural and social enterprises D - Developing enterprise in emerging and transition economies E - E-business, e-learning, e-mailing and website marketing I - Innovation, incubation, networks and knowledge transfer M - Management, skills, environmental and global growth issues S - Supporting small business development world-wide V - Venture capital, business angels, finance and taxation W- Women's enterprise and family business development Y - Youth enterprise support programmes world-wide

There will also be a large “Enterprise Expo”, providing maximum exposure of products and services, with many opportunities for networking between delegates and exhibitors. Registered exhibitores see at http://www.enterprisepromotion.org/expo.htm.

WHERE? Harrogate International Centre, Yorkshire, England, HG1 5LA

www.harrogateinternationalcentre.co.uk

For further details, please write to the Conference Organiser at: [email protected] or visit:

www.enterprisepromotion.org

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FEMALE ENTREPRENEURSHIP AND LOCAL ECONOMIC GROWTH

A Case of Countries in Transition

Preface

In recent years, women have been playing an increasing role as drivers of growth in many of the world's economies, However, little is known about the gendered influences on the experiences and the subsequent contributions of growth-oriented female entrepreneurs in transitional economies. Transitional countries have experienced some of the world's most dramatic economic and societal changes within a short time and mushrooming of informal activities has been a key element in these shifts.

Female Entrepreneurship and Local Economic Growth focuses on the role of female entrepreneurship in economic development. A particular emphasis is placed on countries that are in transition from a public-led to a private sector-led economy. While most countries in transition are still navigating their ways through the newly-adopted business environment, for some, there has been a number of adjustments and an increased urgency to re-align their economic policies to adapt to globalization pressures and the new economic order. Contributors to this volume have concluded that women and Female-owned enterprises (F0Es) have a significant role in this transition. It has been argued that economics and economic geography will be condemned to misunderstand economic growth in general and entrepreneurship in particular, if they keep focusing on its cognitive maps, while ignoring its gendered maps of affect.

The papers assembled in this volume have a wide coverage and have covered recent empirical researches from both junior and experienced researchers from Africa, America and Europe. We would like to thank them all for their tireless efforts. Without them, we would not have been able to produce this book.

Imani Silver KYARUZI & Mirjana RADOVI Ć - MARKOVI Ć, July 2009

First Edition: September 2009

Outskirts Press Inc http://www.outskirtspress.com

ISBN: 978-1-4327-4755-8

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The address of the ERENET Secretary see below Dr. Antal Szabó ccco Attila Petheő c Budapest Corvinus University Small Business Development Centre ooo o oo oco o

ERENET Secretary for South-Eastern Europe is the following:

Institute of Economic Sciences Ms. Vesna Pejovic c oco occ c

ISSN 1789-624X

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