"Small Business Development During The Crisis "

Abstract

In a modern economy, SMEs have to function beside the large enterprises in an efficient way. Both large enterprises and small enterprises have a well defined role and weight in the market in light of the priorities which the economy and social structure require. In a period of crisis, however, the priorities of operation of the economy change, needing major adjustments to the ratio between large enterprises and small. One way to achieve this modernization would be to stimulate the market free of capital, particularly that aimed at SMEs. This paper will present the most important characteristics of the relations between large and small enterprises, how they should operate and which factors would influence development of small and medium-sized enterprises in a period of crisis. Establishing an optimal ratio between large companies and SMEs by stimulating the development of the latter would be one way to mitigate the dramatic effects of the crisis period.