United Nations Economic Commission for Europe SMMAALLL AANDD MMEEDDIIUUMM-SSIIZZEEDD EENNTTEERRPPRRIISSEES IINN COOUUNTTRRIIEESS IINN TTRRAANNSSIITTIIOONN UNITED NATIONS United Nations Economic Commission for Europe SERIES: ENTREPRENEURSHIP and SMEs SSMMAALLLL AANNDD MMEEDDIIUUMM--SSIIZZEEDD EENNTTEERRPPRRIISSEESS IINN CCOOUUNNTTRRIIEESS IINN TTRRAANNSSIITTIIOONN UNITED NATIONS New York and Geneva, 2003 This document is prepared on the basis of the UNECE Questionnaire on Small and Medium-sized Enterprises in Economies in Transition and Emerging Market Economies in 2000 and 2001 ECE/TRADE/337 OPA/AC.32/1 UNITED NATIONS PUBLICATION Sales No. 92-1-116860-0 ISBN E.03.II.E.43 Copyright © United Nations, 2003 All right reserved Printed at United Nations, Geneva (Switzerland) CONTENT FOREWORD...........................................................................................................................1 ACKNOWLEDGEMENT......................................................................................................2 1. INTRODUCTION...............................................................................................................4 2. GOVERNMENT AUTHORITIES RESPONSIBLE FOR FORMULATION OF SME POLICIES ...............................................................................................................5 3. CHARACTERISTICS OF THE SME SECTOR IN COUNTRIES IN TRANSITION .........................................................................................................................6 4. DEFINITION OF SMEs...................................................................................................12 5. LEGISLATIVE ASPECTS..............................................................................................23 5.1. Albania.........................................................................................................................23 5.2. Armenia........................................................................................................................23 5.3. Azerbaijan....................................................................................................................23 5.4. Belarus .........................................................................................................................24 5.5. Bosnia and Herzegovina..............................................................................................25 5.6. Bulgaria .......................................................................................................................25 5.7. Croatia .........................................................................................................................25 5.8. Czech Republic.............................................................................................................26 5.9. Estonia .........................................................................................................................26 5.10. Georgia ......................................................................................................................26 5.11. Hungary .....................................................................................................................26 5.12. Kazakhstan.................................................................................................................27 5.13. Kyrgyzstan..................................................................................................................27 5.14. Latvia .........................................................................................................................28 5.15. Lithuania ...................................................................................................................29 5.16. Poland........................................................................................................................29 5.17. Republic of Moldova..................................................................................................29 5.18. Romania .....................................................................................................................29 5.19. Russian Federation ....................................................................................................30 5.20. Slovakia......................................................................................................................30 5.21. Slovenia......................................................................................................................32 5.22. Tajikistan....................................................................................................................32 5.23. The former Yugoslav Republic of Macedonia............................................................33 5.24. Turkmenistan..............................................................................................................33 iii 5.25. Ukraine ......................................................................................................................34 5.26. Uzbekistan..................................................................................................................35 5.27. Federal Republic of Yugoslavia.................................................................................37 6. SME SUPPORTING MEASURES AND INSTITUTIONS..........................................38 6.1. Albania.........................................................................................................................38 6.2. Armenia........................................................................................................................38 6.3. Azerbaijan....................................................................................................................39 6.4. Belarus .........................................................................................................................40 6.5. Bosnia and Herzegovina..............................................................................................41 6.6. Bulgaria .......................................................................................................................42 6.7. Croatia .........................................................................................................................43 6.8. Czech Republic.............................................................................................................44 6.9. Estonia .........................................................................................................................45 6.10. Georgia ......................................................................................................................45 6.11. Hungary .....................................................................................................................46 6.12. Kazakhstan.................................................................................................................47 6.13. Kyrgyzstan..................................................................................................................47 6.14. Latvia .........................................................................................................................48 6.15. Lithuania....................................................................................................................49 6.16. Poland........................................................................................................................49 6.17. Republic of Moldova..................................................................................................50 6.18. Romania .....................................................................................................................50 6.19. Russian Federation ....................................................................................................52 6.20. Slovakia......................................................................................................................53 6.21. Slovenia......................................................................................................................54 6.22. Tajikistan....................................................................................................................54 6.23. The former Yugoslav Republic of Macedonia............................................................55 6.25. Turkmenistan..............................................................................................................56 6.26. Ukraine ......................................................................................................................57 6.27. Uzbekistan..................................................................................................................57 6.28. Federal Republic of Yugoslavia.................................................................................58 7. SWOT (Strengths, Weaknesses, Opportunities, Threats) ANALYSIS .......................59 7.1. ALBANIA......................................................................................................................59 7.2. ARMENIA ....................................................................................................................60 7.3. AZERBAIJAN...............................................................................................................61 7.4. BELARUS.....................................................................................................................62