Small businesses now constitute the most dynamic element of growth in the emerging markets of the Central and Eastern European region. This book argues that the small and medium sized enterprise (SME) sector has contributed more to the growth of these countries in transition than have privatized state enterprises and the public sector. In 1989 most of the countries of Eastern and Central Europe were still under an economic system dominated by state-owned enterprises. Since then a process of liberalization has been unleashed to promote free market policies. This has involved programs of...