Eszterházy Károly College Faculty of Natural Sciences
The competitiveness of small businesses is fundamentally determined by how and to what extent are they able to react to the high efficiency provided by large enterprises. The Hungarian economy is characterized by small and medium-sized companies, developed tools that allow them to compete against large corporations in many areas. Based on experience, they are able to live with such methods increasingly.
Of these, the following are highlighted:
Division of labor
Micro and small companies can not operate efficiently the management functions that are essential for operation within their own organizations. Domestic small and medium companies are increasingly outsourcing marketing, accounting, legal, technical, IT and other services as it showed by the Ministry of Economy and Transport regularly conducted business surveys. Nearly three-quarters of domestic small and medium-sized businesses regularly buy some operational or strategic service. Two-thirds of the business companies employ external accountants, auditors. The business companies purchase at least two kind of services. The development of the division of labor contributes to the SMEs to maintain and sometimes to improve their competitiveness against large enterprises and foreign competitors. The market of operational and strategic services developed and changed along with the market demands as a significant part of the companies providing services are small business companies as well.
For domestic small and medium-sized companies networking is one of the most effective means to reduce the disadvantages of economies scale. The network organization of the Hungarian small and medium-sized companies is adequate to the country's overall economic development and it shows growing tendency. The networking process is characterized by simple and informal relationships being relatively common among the hungarian small and medium-sized companies based on them formal cooperation is spreading.