Hungarian companies are not effective enough


An article from Napi Gazdaság says that regarding the efficiency, Hungarian small and medium enterprises (SMEs) were only at the 25-26th place among the EU member states in 2010. Therefore, the participants of the Hungarian event of European SME Week claimed in Debrecen that the improvement of the status of SMEs would be the target in the next EU budget period.

According to Ferenc Miklóssy, the president of Chamber of Commerce and Industry of Hajdú-Bihar County, the capitalisation of SME sector should be improved primarily. The fact that 60% of EU funds is expended on economic development contributes to this improvement. The loan program of MNB (the Central Bank of Hungary), simplification of tenders, one-stop shopping and reduction of administration can help the capitalisation, as well.

Áron Márk Lenner, the Ministry of National Economy’s Deputy State Secretary for Domestic Economy, said that 73,5% of employees worked in the SME sector, so they must have taken the lead in job creation. The economic crisis of 2008 had a negative impact on the SMEs, but by the end of 2013, the macroeconomic indicators have been stabilized and the economic growth has launched. In Hungary, there are 4 million employees and this number is lower than in the similar size of Czech Republic. For this reason, the 8300 billion forint cohesion fund, which Hungary receive until 2020, must contribute to the progress in low employment rate, – the State Secretary considered.

Together, the municipality of the County and of Debrecen will launch an economic recovery program for small enterprises of the region in the second half of 2014. The program will provide grants and soft loans so it will be a significant boost for the SMEs of Hajdú-Bihar County. Municipalities should take a greater role and the University of Debrecen should be a key partner in the knowledge-based economic development.

European Enterprise Network (EEN), which is currently the only enterprise development initiative of the European Commission, can present the legal and market segment of a country for companies, look for business partners and organize meetings. The program operates in 53 countries and it can improve the export of Hungarian SMEs, since they have formed 174 partnerships with foreign enterprises. Hungary has become the 10th most active country among the participants.

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