Foreword

Small and medium-sized enterprises (SME) are an important component of the Republic of Moldova’s economy, representing 98% of all businesses in the country and 59% of employment. Within the SME sector, although the economic and social role of micro-companies is essential – they make up 76% of all SMEs – enterprises in the small and medium-sized segments tend to be larger contributors to employment and economic growth. In the post-economic crisis period, the challenge for policy makers in the country will thus be to support the development of these micro-businesses while at the same time strengthening the competitiveness of “larger” SMEs. The effectiveness of this policy will determine the success of economic recovery. In this context, the report provides a detailed assessment and benchmarking of critical policy settings and institutional conditions that shape the environment for SMEs in the Republic of Moldova.