SME policy and competitiveness in Hungary

SMEs in Hungary account for 99.9% of all enterprises and since 1989 have been the only net makers of employment. However, results have been modest compared to the amount of resources poured into the sector. In spite of bright spots, the context is problematic and SMEs features are often unfavourable and hardly competitive. In recent years, the goal of upgrading and strengthening SMEs has acquired central position among policy goals and activity. Although progress has been made, the results are weak, and in some cases, drawbacks have happened. The paper starts from analysing the SMEs situation, reviews the main features of the recently implemented policy strategies, assesses whether these strategies are appropriate to address the situation, including the effects of the domestic and international crises, and considers whether the targets pursued are realistic and important, and the instruments considered in line with the targets.