Why don't we see more Small- and Medium-sized Enterprises (SMEs) in Lithuania?
AbstractThis paper identifies the specific external barriers to SME development in Lithuania. An analysis of 332 SME owners reveals that formal barriers (taxes, frequent changes to and ambiguity of tax policies) and environmental barriers (low purchasing power, lack of funds for business investment) form the most significant barriers for SME businesses. Informal barriers (late payment to clients, corruption, government interference) were secondary in significance. By grouping together variables according to barrier types, and using regression analysis, the inter-linkages between barrier types becomes evident. Our results suggest that the effect of business barriers is intensified by corruption, lack of information and inadequate business skills.
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Bibliographic InfoPaper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 02-038/2.
Date of creation: 22 Apr 2002
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SMEs; business barriers; Lithuania; transition economics; institutional theory; entrepreneurship;
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