Gender Equality National Report Hungary - European-microfinance ...

there are several micro-finance programs building on each other, in addition to
training and counselling programs.
d.) Since the political change in 1990, enterprise promotion has always been included
in the published programs of local and regional authorities, local governments and
development councils, however with different emphasis at times and in regions. The main
reason for this was the lack of resources in the municipalities. In default of instruments and
resources necessary for the implementation of the programs, usually they could do nothing
more than provide properties for industrial parks and business incubators, or establish
development agencies "administratively”. The enterprise promotion foundations in the
counties and the capital city, as well as the area development agencies, were established
experimentally at first a by the PHARE program, were mostly founded with a leading role of
the local governments in the counties and the cities. The resources for the organizations
were first provided by the PHARE program; later by the government (in many cases also
from EU funds) therefore the agencies were influenced significantly more by the donor
organization or program than by local organizations.
There has been an essential change in recent years when the Regional Development
Councils (usually covering 3 counties) and their operational units were formed and
strengthened; these have more and more resources and independence in the creation and
implementation of programs.
Within the National Development Plan for 2007-2013 - financed 85% by the EU - the
significance of the Regional Operative Programs significantly increased, and therefore, so
did the role of the Regional Development Councils and Agencies. The ROPs represent
enterprise promotion programs with more significance and better finance accompanied by
remarkable resources.
3.2.3. Entrepreneurial Culture Score 1.0
Hungary still has a very underdeveloped entrepreneurial culture. This is primarily due to
historical reasons, as private micro-enterprises were only allowed to operate in a very narrow
niche and with notable limitations for four decades. This was harmful not only because
people were unable to get entrepreneurial knowledge or experience, but also because the
paternal socialist system made the population very comfortable. They were not compelled to
take risks or to be initiatory or innovative as the state provided everything to everybody -
independent of performance - albeit on a minimal level; those who wanted more were even
scourged.
Thus many of the enterprises that formed in mass around the political transitions (1989) did
not have the preparation or experience in running an enterprise.
Unfortunately, entrepreneurial skills have not been taught at schools in the past 15 years
either, so the next generation of entrepreneurs will also start their new enterprises without
the basic knowledge. Well-prepared school training could have sped up the evolution of a
higher entrepreneurial culture. Progress has been made in this area recently; the teaching of
entrepreneurial skills has been introduced to the elementary education; according to the EU
directives, which emphasise the teaching of entrepreneurial skill all educational levels.
The evolution of a higher level entrepreneurial culture has in no way been assisted by the
rough capitalist character of the past 15 years. Performance, the high standards of products
and services or fair operation did not always mean efficacious entrepreneurial behaviour:
sometimes inferior performance with not very ethical methods provided a more efficient way
to stay in the market. Many people think that a successful entrepreneur means a
businessman looking for loopholes in regulations, who became rich fast, not always honestly
and often at others’ disadvantage. Although it is not common, often it is with valid reason.
20