Development of Small and Medium-Sized Enterprises in Hungary

This paper aims at giving a snapshot on the major trends of SME development in Hungary. After a brief historical background, the focus is put on the current changes taking place in the Hungarian enterprise policy. A major transformation is underway in the SME financing as a result of the substantially increasing EU funds available for enterprise development. This process is also supported by the favourable competition policy rules applicable for the SME sector in the EU. These changes are also supported by the increasing competition between commercial banks for financing possibilities, the target group of which policy is the SME sector. Besides, the concentration of the SME support system with the aim of increasing effectiveness of state subsidy for SME sector is also carried out.