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Restructuring Networks in Post-SocialismLegacies, Linkages and Localities$
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Gernot Grabher and David Stark

Print publication date: 1996

Print ISBN-13: 9780198290209

Published to Oxford Scholarship Online: October 2011

DOI: 10.1093/acprof:oso/9780198290209.001.0001

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Too Many, too Small

Too Many, too Small

Small Entrepreneurship in Hungary—Ailing or Prospering?

(p.158) 6 Too Many, too Small
Restructuring Networks in Post-Socialism

Gernot Grabher

David Stark

Oxford University Press

This chapter argues that the development of small businesses in Hungary had been hampered both by historical heritage and the context of the transformational crisis. It sees mass and chronic unemployment as a contextual factor preventing the emergence of an efficient and dynamic small-business sector. The chapter focuses on the effects of narrowly economic determinants as observed in larger aggregates of self-employment. Based on the experience of established market economies as a comparative standard of measure, it proposes that small entrepreneurship in Hungary is exhibiting a syndrome that might be characterized as ‘too many, too small’. It adopts a macro-level economic approach to assess whether small entrepreneurship in Hungary is ailing or prospering. Lastly, it elaborates the implications of this syndrome for economic policy.

Keywords:   small businesses, transformational crisis, mass unemployment, chronic unemployment, economic determinants, established market economies, too many, too small, Hungary, small entrepreneurship

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