Global perspectives: small scale entrepreneurs and private sector development in the Slovak Republic

The building of private sector economies in East Central Europe is receiving a great deal of attention in both the business and academic worlds. Thus far, most of the focus has been on the sale of older, state-owned enterprises to the private sector (privatization). However, enterprises newly created by local enterpreneurs, often small in scale, are making contributions to the private economy as well. This paper will discuss both aspects of private sector development using data from the Slavic Republic. Specifically, it will discuss the relationships among the growth of newly-created enterprises, the privatization of state assets, and regional economic differences (measured by unemployment statistics). It will be shown that a healthy local entrepreneurial climate can ease the transition to a market economy, and should therefore be given greater attention in the planning and policy-making of local governments and international aid agencies