In Quest of SME-Conducive Policy Formulation

Abstract

Objective:The article focuses on the role of SMEs in the national, regional and global environment. The main objective of the article is to present the economic and social importance of SMEs in the context of policy formulation for their support and development.

Research Design & Methods: The article reviews the theoretical and empirical literature on SMEs and their role in business environment. Then the paper develops a set of questions and propositions to guide future research and policy.

Findings:The article describes a significant role of SMEs for job creation and economic dynamics. Over the economic considerations, relevance of SMEs is to be viewed also from a more broadly based socio – economic perspective; that is, SMEs being seen as a driving force of structural change on the one hand, and as stabilising factor for safeguarding a given economic setting with its institutional framework in the dynamics of change on the other.

Implications & Recommendations: The complexity and dynamics of market processes determine the diversification of SME policy. Identifying contemporary challenges faced by SMEs are ‘building stones’ for specific policy formulation in the future.

Contribution & Value Added:The study highlights the need to deepen the understanding of the current role of SMEs for the labour market and welfare. What is more, the SMEs policy should be articulated more offensively as a key component of the economic policy in general.

Keywords

SMEs, policy formulation, environment

Author Biography

J. Hanns Pichler

em.o.Univ.-Prof.Dr.Dr.h.c. J. Hanns Pichler

Born in 1936, Austrian citizen, married (to Dr. Hannelore M. Pichler-Haslinger v.d. Linden, C.P.A.), 3 children

Graduated from University of Economics & Business Administration, Vienna: Master's (Dkfm.) 1958,

Doctorate 1960; and Univ. of Illinois, USA, M.Sc.

(Economics/Econometrics) 1963; further studies also in Germany, UK, Greece

1962-1963 Lecturer, Graduate School of Business Administration, University of Illinois,

USA

1965/67 "Habilitation" (Dr. habil.) in Economics, University of Economics & Business Administration, Vienna

1965-70 Economist/Senior Economist, World Bank, Washington D.C., with far ranging

experience in country economic, sector and project work in Latin America, the Caribbean,

Eastern Africa, South and South-East Asia

1970-73 Senior Economist/Resident Representative of the World Bank Group, with

particular responsibility for Pakistan (including former East Pakistan, later Bangladesh)

and adjacent regions; board member in this capacity also of industrial development

banks/finance companies in the area

1973-2004 Full Professor (Chair: "Political Economy and International Development"),

University of Economics & Business Administration, Vienna; Professor emeritus (since

Oct. 2004); 1975-97 Chairman, Faculty of Economics; 1996-2000 Vice-Dean of Studies

for International Programs; 1997-2001 University Faculty Chairman; 1999-2004 Head,

Department of Economics; 1975-94 Guest Professorship, University of Agro-Sciences,

Vienna; Member Examinations Committee: University of Agro-Sciences, Vienna (since

1983) and Faculty of Social & Economic Sciences, University Vienna (since 1992);

International Committee, MEDCAMPUS Engineering Management Postgraduate

Certificate Program, Ankara; Overseas Supervisor, China Scholarship Council

Senior Schumpeter Fellow, Center for European Studies/Harvard University

Professional Memberships: Rencontres de St-Gall (Switzerland); Austrian Economic

Association; Gesellschaft für Ganzheitsforschung, Vienna; Legatus Austriae,

Academia Scientiarum et Artium Europaea (Dean, Class V, 1995-2001); Club of

Rome (Austrian Chapter); European Council for Small Business (ECSB, Past Vice-

President); Past-President, International Council for Small Business (ICSB); Austrian

Society of Business History; Association of Austrian University Professors

Editor/Editorial Boards: “Zeitschrift fuer Ganzheitsforschung“ (Vienna); "ZfKE. Zeitschrift

fuer KMU und Entrepreneurship" (Berlin-Munich-St.Gallen); “Journal of Small

Business & Entrepreneurship" (Ottawa); “Population Manager-ICOMP Review" (Kuala

Lumpur); “WASME Newsletter“ (New Delhi, til 2005); „Journal of Small Business

Management“ (U.S.); Newsletter, SME Research Austria; Piccola Impresa/Small

Business. Rivista internazionale di studi e ricerche (Urbino/Italy); Scientific Council,

Review of International Comparative Management (Bucharest)

President/Chairman: Austrian Institute for SME Research; Gesellschaft fuer

Ganzheitsforschung, Vienna

Vice-Chairman, Austrian Foundation for Development (OeFSE, til 2007); Vice-President,

European Institute for Standards on Investment Studies (EUSIS)

Board Member: Austrian Latin America-Institute (LAI); Schumpeter Association Vienna;

Oeko-Forum Austria; International Council for Small Business; Institute of Business

Ethics and Entrepreneurial Culture, Vienna; Association of Friends of the Vienna

Philharmonics

Advisory Boards: Ernst & Young, Vienna; Research Association on Mesolevel Economic

Issues, Munich; The American Biographical Institute (abi); Negeve Institute for

Strategies of Peace and Development/International Center for the Promotion of Small

and Mediumsize Enterprises (NISPED/InCeP-SME), Israel; Institute for Cooperation in

Development Projects (ICEP), Vienna; IDEA-International Development Enterprise

Associates, Washington, D.C.

European Representative, ICOMP-International Council on Management of Population

Programs (UN-NGO, Kuala Lumpur); Arbitrator, I.C.S.I.D. (World Bank); Consultant

World Bank Group, UNIDO

Awards/Honors:

Doctoral Honors Prize, Austrian Chamber of Labour (1960); Cardinal Innitzer Science

Award (1966); University of Economics Honors Prize (1982); Austrian Cross of Honour

for Science & Art, First Class (1988); Leopold Kunschak-Award (1990); Honorary

Doctorate in Economics, Cath. Univ. Brussels (1994); „Festschrift“ on occasion of 60th

birthday (Berlin 1996); Grand Silver Decoration of Honour to the Republic of Austria

(2001); Wilford White Fellow, ICSB (2003); Gold Medal of Merit, Austrian Red Cross

(2004); Knight, Old Order of St. George/Order of the Four Roman Emperors (2006)

Languages: German (native), English, Spanish; some Russian, Urdu

Listings: Who is Who in Austria; Who's Who in the World; International Directory of

Distinguished Leadership; Who’s Who in Finance & Industry; Five Thousand Personalities

of the World; Kuerschners Deutscher Gelehrtenkalender; Who is Who, University of

Economics and Business Administration, Vienna; Millennium Hall of Fame (abi); Dictionary of International Biography and others

Books and numerous articles, especially on international economic issues, international finance, indebtedness, development and development strategies; on business leadership,

entrepreneurial values and attitudes, small and medium scale industrial structures

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