Volume 1 Cedric - revised luca Final - RUIG-GIAN

1. IntroductionThe research objective of this project was to study inter-ethnic stakeholder enterprisesin Macedonia in the context of the inter-ethnic tensions, the 2001 security crisis inparticular and the transition to the market economy. Primary challenges facing Macedoniaare the restoration of peaceful inter-ethnic relations, which had deteriorated in the contextof the 2001 crisis and the aftermath of the Balkan crises of the 1990s. The aim is to launcha programme of economic development enabling and encouraging ethnic minorities to playa full and equal part, and will be both sustainable and participatory.Against this backdrop, this study focuses on the case of successful SMEs in which thepartners originate from different ethnic gr oups (chiefly Slavs and Albanians, but alsoothers including Turks and Vlachs). The study looks at the signal contribution to economicprogress and social harmony that these economic, yet also social actors, can play bydemonstrating that stakeholders in successful enterprises become ipso facto stakeholders ina society at peace with itself. The team is aware that inter-ethnic joint enterprises haveexisted in the region for many decades, and were even a quite common feature ofMacedonian society while the Ottoman Empire held sway until 1912, when the lastTurkish garrison withdrew from the capital, Skopje. It is also aware, however, that thispromising tradition, which could serve as a point of departure for a broadly basedprogramme of policy encouragement for a critically important sector of the economy, isnow at risk of being swept away in a flood of inter-ethnic mistrust. Indeed, in the crisisaftermath there have been indications that inter-ethnic intolerance and tension obligedsome such joint enterprises to scale down their operation or even to close down. Theinvestigation will examine whether such initial observations were correct.While socio-political stability and economic developments are considered asinterrelated goals, the study will start with analyzing the social impact of the enterpriseswith regard to the security crisis. First, the effects of inter-ethnic nature of enterprises inrelation to the crisis will be examined, second, the positive impact of civil societyinstitutions and broader social and cultural structures on creation and operation of interethnicenterprises will be attempted.The second part of the study will deal with economic factors that affect SMEs atlarge, and are not necessarily related solely to inter-ethnic enterprises. This includesbroader economic trends in the country and their effects on policies regarding SMEs.International standards of best practices and relevant experience of SMEs in othercountries will be used. The structural constraints and broader economic environment willbe examined in the context of current practices of the government. Drawing on the datafrom this particular research, in combination with more general studies of best practices,key areas of improvement for governmental and international promotional measures willbe identified, which include primarily greater access to appropriate financing, support ofgrassroots initiatives and development of entrepreneurial culture.110