TRENDS AND PERSPECTIVES OF SME DEVELOPMENT – HOW TO TURN CHALLENGES INTO OPPORTUNITIES

The contribution of small and medium-sized enterprises in EU as well as in particular Member States has been in recent years significant in terms of not only employment but also economic growth. SMEs represent more than 99% of enterprises, which in last years operated in the EU-28 non-financial business sector. Nonetheless, EU economic policy measures and practices still do not adequately reflect the important role that SMEs play. Moreover, that is despite the fact that development of entrepreneurship and entrepreneurial activities is heavily dependent on existing institutions, which influence not only the individual decisions to become entrepreneur, but also the characteristics of new businesses. The article focuses on selected characteristics of SMEs in EU with special regard to Slovak republic. It presents determinants, current challenges and constraints of SME development in the context of its institutional background within the EU.