Small Businesses in South and Western Hungary in the Nineties - Results of a Sociological Survey

The objectives of the research are to analyse the main features of small businesses of South and West Hungary, to identify the main tendencies of their operation and development and to determine the main motivating factors in their business management processes. The area under examination covers rural county Zala, rural county Somogy, and the settlements located by the Western shore of lake Balaton. The main findings: the fast increase in the number of the small and medium size enterprises is due to the loss of the employment possibilities, the inclination and resources of vocationally trained workers to establish their own businesses including family traditions, the desire to achieve tax reduction and income maximisation, and higher incomes. Difficulties are caused by the lack of available capital. Enterprises not turning back part of their gains into the business cannot provide sufficient income for the family.