Micro, small and medium-scale enterprises (SMEs) make important contributions to economic and social development. In all economies they constitute the vast majority of business establishments, are usually responsible for the majority of jobs created and account for one third to two thirds of the turnover of the private sector. In many countries they have been the major engine of growth in employment and output over the last two decades. In developing countries they are seen as a major ‘self-help’ instrument for poverty eradication. In transition economies, the main target countries of this publication, they provide the best illustration of the changes in ownership structures, business culture.
