EMCC European Monitoring Centre on Change

Hungary: ERM comparative analytical report on 'Emerging forms of entrepreneurship'

  • Observatory: EMCC
  • Topic:
  • Published on: 21 March 2011



About
Country:
Hungary
Author:
Sándor Mátyási
Institution:

Disclaimer: This information is made available as a service to the public but has not been edited by the European Foundation for the Improvement of Living and Working Conditions. The content is the responsibility of the authors.

In Hungary relatively early, in the late period of the socialist planed economy , the 1980s, there started  a public debate on freedom of enterprise, and running private businesses as part of  the  civil human right. The Companies Act was born in 1987, which has fully regulated and permitted the establishment of businesses. However, these early compromise between political doctrine and economic interests were not harmonised with the Western European standards. It was a challenge for the researcher to find comparable data from this time. After the change of regime (1989-1990) has increased the role of the self-employment and part-time employment, due to the significant increase of unemployment. The European PHARE programmes were the first to support entrepreneurship. Entrepreneurship as a theme has been constantly in the public debate and the legislation had its focus on it permanently. This led even to the establishment of public support institutions .

In the period between 2004 and 2010 a harmonisation of procedures has been undertaken (as a part of the accession to the European Union), however most of the debates about emerging forms of enterprises were dominated by the aim to regulate black market and less to increase economic power through ‘individual’ economic activities. After the accession to the European Union in 2004, a new supportive system, (Business Support Schemes) had been developed by the governments, which should be executed by the Human Resources Development Operational Programme 1 (HEFOP) and Social Renewal Operational Programme (TÁMOP, http://www.nfu.hu/doc/5)2

Several funding and supporting tools were established. Today one central point in the discussion is how to regulated better problems of liquidity shortages of entrepreneurship.

QUESTIONNAIRE

 Part I: Public/policy discussion

Do the public/policy discussions specifically deal with the different forms of business activities, since when and for how long?

Table 1: Presence of the different emerging forms of entrepreneurship in the public debate
 

Yes, continuously since xx year? (Please indicate year)

Yes, on and off in the last 10 years

(Please indicate yes where it applies)

Yes, has been on the public agenda, but since xx year it is no longer part of the agenda (Please indicate year)

No, it has never been part of the public agenda

(Please indicate X where it applies)

One-person enterprises /self-employed

1992

     
Part-time entrepreneurs

2001

     
Parallel entrepreneurs      

x

Serial entrepreneurs      

x

Business transfers and successions

1998

     

For each of the entrepreneurship/business activities covered by policy discussions, which policy domains are they covered in? Please indicate with an ’X‘ where relevant.

Table 2: Policy domains engaged in the policy discussion of the emerging forms of entrepreneurship
 

Labour policies

Educational policies

Economic/Industrial policies

Innovation policies

Regional policies

Other (please specify)

One-person enterprises /self-employed

X

X

X

X

 
Part-time entrepreneurs

X

 

X

 

X

 
Parallel entrepreneurs            
Serial entrepreneurs            
Business transfers and successions    

X

X

X

 

In which media and forum do the public debate and policy discussions about the different types of entrepreneurship take place?

Table 3: Media and forums discussing the emerging forms of entrepreneurship
 

Public media such as newspapers and magazines incl. electronic media

Policy documents and analysis

Proposed legislation and/or business support schemes

Others, please specify

One-person enterprises/self-employed

X

X

X

 
Part-time entrepreneurs

X

X

X

 
Parallel entrepreneurs        
Serial entrepreneurs        
Business transfers and successions

X

X

X

 
Table 4: What has motivated the public debate of the emerging forms of entrepreneurship?

Type of Entrepreneurship

Motivator

One-person enterprises/self-employed

Identified market and system failures, which require public intervention, and to manage high rate of unemployment.

Identified market and system failures, which require public intervention. Reinforced the entrepreneurs’ attitude.

What has been the focus of the policy discussion?

Table 5: The policy focus in the public debate within each of the emerging forms of entrepreneurship

Part-time entrepreneurs
Parallel entrepreneurs  
Serial entrepreneurs  
Business transfers and successions

Identified market and system failures, which require public intervention. Identified disfunctionalities that call for improvement and new business legislation.

Main motivation: involve new capital, management and professional knowledge, and encourage domestic entrepreneurs.

Type of Entrepreneurship

Policy focus

One-person enterprises/self-employed

Regulating illegal business activities.

Special tax or VAT schemes that give preferential treatment to start-ups and entrepreneurs

Reactivating unemployed people.

Part-time entrepreneurs

Regulation of business conditions or preventing illegal activities

Promoting entrepreneurship

Special tax or VAT schemes that give preferential treatment to start-ups and entrepreneurs

Raising entrepreneurial spirit.

Access to financial resources.Financial incentives for business transfer.Facilitate business transfer through administrative simplification.

Research and development transfer and helping R&D processes by financing and other sources.

Has the public discussion resulted in a concrete outcome/impact?

Table 6: Outcome or impact of the public debate of the emerging forms of entrepreneurship

Parallel entrepreneurs  
Serial entrepreneurs  
Business transfers and successions

Type of Entrepreneurship

Outcome/Impact

One-person enterprises/self-employed

New legislation has been implemented.Attitude development towards entrepreneurship.

Different government projects, tenders: HEFOP, TÁMOP

Attitudes development towards entrepreneurship

New legislation has been implemented

Different government projects, tenders: HEFOP, TÁMOP

Positive impact on labor market in terms of increased employment levels

Different government projects, tenders: HEFOP, TÁMOP

Within the last couple of years, to which extent MTA the public and policy discussion been more focused on the following different types of entrepreneurship compared to the business policy/entrepreneurship debate in general?

Table 7: Increased focus at the emerging forms of entrepreneurship?

Part-time entrepreneurs
Parallel entrepreneurs  
Serial entrepreneurs  
Business transfers and successions
 

To a low degree To a high degree

 

1

2

3

4

5

One-person enterprises/self-employed        

X

Part-time entrepreneurs      

X

 
Parallel entrepreneurs

X

       
Serial entrepreneurs

X

       
Business transfers and successions      

X

 

The main sources of information

  • Hungarian Central Statistics Office (KSH, www.ksh.hu)
  • Hungarian Academy of Science, Institute of Economics (MTA, http://www.mta.hu/?english)
  • GKI Economic Research Co. (GKI http://www.gki.hu/en/index.html)
  • Public Employment Services (ÁFSZ, http://en.afsz.hu/)

Part II: Standardised structural data

Table 8: Availability of business statistics about the emerging forms of entrepreneurship
 

Type of data available

Indicate access to data by an ‘X’ in the first column

First published

Indicate year

Time series of data

(Biannually, annually, quarterly, monthly, once only, other)

Data source for the data

One-person enterprises/ self-employed

Number of enterprises

X

1992

Monthly

Annually

KSH (Hungarian Central Statistical Office)

MTA ( Hungarian Academy of Science, Institute of Economics)

GKI Economic Research Co.

ÁFSZ (Public Employment Services)

Enterprises by branch

NACE 4 digit level

X

1992

Annually

KSH

Availability of regional data

NUTS 3 level

X

1992

Monthly

Annually

KSH

ÁFSZ

Type of ownership of enterprises

X

1992

Monthly

Annually

KSH

MTA

GKI

Economic performance e.g.:

Turnover

X

1992

Monthly

Annually

KSH

MTA

GKI

Exports

       

Employment

X

1992

Monthly

Annually

KSH

ÁFSZ

Others: ___________

       

Sustainability:

Number of new enterprises (start-ups) by year

X

1992

Monthly

Annually

KSH

MTA

GKI

Number of discontinued enterprises, incl. bankruptcies

X

2000

Monthly

Annually

KSH

MTA

GKI

survival rate of enterprises

X

2000

Annually

KSH

Others, specify:

       
Part-time entrepreneurs

Number of enterprises

X

1992

Monthly

Annually

KSH

MTA

GKI

ÁFSZ

Enterprises by branch

   

Annually

KSH

Availability of regional

NUTS 3 level

X

1992

Monthly

Annually

KSH

ÁFSZ

Type of ownership of enterprises

X

1992

Monthly

Annually

KSH

MTA

GKI

Economic performance e.g.:

Turnover

X

1992

Monthly

Annually

KSH

MTA

GKI

Exports

       

Employment

X

1992

Monthly

Annually

KSH

ÁFSZ

Others: ___________

       

Sustainability:

Number of new enterprises (start-ups) by year

X

1992

Monthly

Annually

KSH

MTA

GKI

Number of discontinued enterprises, incl. bankruptcies –

X

2000

Monthly

Annually

KSH

MTA

GKI

Survival rate of enterprises

X

2000

Annually

KSH

GKI

Others, specify:

       
Parallel entrepreneurs

Number of enterprises

       

Enterprises by branch

NACE 4 digit level

       

Availability of regional data

       

Type of ownership of enterprises

       

Economic performance e.g.:

Turnover

       

Exports

       

Employment

       

Others: ___________

       

Sustainability:

Number of new enterprises (start-ups) by year

       

Number of discontinued enterprises, incl. bankruptcies –

       

survival rate of enterprises

       

Others, specify:

       
Serial entrepreneurs

Number of enterprises

       

Enterprises by branch

NACE 4 digit level

       

Availability of regional data

       

Type of ownership of enterprises

       

Economic performance e.g.:

Turnover

       

Exports

       

Employment

       

Others: ___________

       

Sustainability:

Number of new enterprises (start-ups) by year

 

1992

   

Number of discontinued enterprises, incl. bankruptcies –

 

1992

   

survival rate of enterprises

 

1992

   

Others, specify:

       
Business transfers and successions

Number of enterprises

x

1992

Monthly

Annually

KSH

MTA

GKI

ÁFSZ

Enterprises by branch

NACE 4 digit level

x

1992

Annually

KSH

Availability of regional data

NUTS 3 level

x

1992

Monthly

Annually

KSH

ÁFSZ

Type of ownership of enterprises

x

1992

Monthly

Annually

KSH

MTA

GKI

Economic performance e.g.:

Turnover

x

1992

Monthly

Annually

KSH

MTA

GKI

Exports

x

1992

   

Employment

x

1992

Monthly

Annually

KSH

ÁFSZ

Others: ___________

       

Sustainability:

Number of new enterprises (start-ups) by year

x

1992

Monthly

Annually

KSH

MTA

GKI

Number of discontinued enterprises, incl. bankruptcies

x

1992

Monthly

Annually

KSH

MTA

GKI

survival rate of enterprises

x

1992

Annually

KSH

GKI

Others, specify:

       

Is it possible to cross tab or merge the demographic data identifying the individual persons running any of the five forms of entrepreneurships/business activities with the company data specified in question 9 in a common database for analytical purpose?

No data available.

Is the data freely accessible or does it require registration, payment and/or a special effort to access the data? Please explain the accessibility for each of the forms of entrepreneurs/business activities and datasets referred to above.

Table 10: List of statistical sources about the emerging forms of entrepreneurship

List data source/dataset

Explain the accessibility

http://www.gki.hu/en/regular/surveys.html

To order: http://www.gki.hu/en/regular/order.html?type=my&kiadvany=Monthly+business+survey

Payment required.

http://portal.ksh.hu/portal/page?_pageid=37,602236&_dad=portal&_schema=PORTAL 3.2.8

http://portal.ksh.hu/pls/ksh/docs/hun/xstadat/xstadat_evkozi/e_qvd008a.html

Available only in Hungarian.

http://portal.ksh.hu/pls/ksh/docs/eng/xftp/gyor/gaz/egaz20912.pdf

Material freely available in English.

http://portal.ksh.hu/pls/ksh/docs/eng/xftp/stattukor/valldemog/evalldemog07.pdf

Material freely available in English.

http://portal.ksh.hu/pls/ksh/docs/hun/xstadat/xstadat_eves/i_qvd001a.html

Available only in Hungarian.

Part III: Research

Please describe studies and research available nationally for each of the forms of entrepreneurs/business activities.

Table 11: List of studies and research about the emerging forms of entrepreneurship
 

List the references (author’s name, title of publication etc, year of publication, organisation)

A short summary of the contents (e.g. topic covered, methodology applied)

One-person enterprises/self-employed

www.matud.iif.hu/2010/10/10.htm

Foglalkoztatás, intézményrendszer és foglalkoztatáspolitika, megjelent: Társadalmi Riport, TÁRKI 2008, 257-289.o.

http://www.tarsadalomkutatas.hu/kkk.php?TPUBL-A-817/publikaciok/tpubl_a_817.pdf

Self-employed data – under Flash Eurobarometer

 

Scharle Á.: Önfoglalkoztatás, munkanélküliség és családi vállalkozások

Magyarországon. KSZ 2000/3.

Self-employment, unemployment, family enterprises

 

önfoglalkoztatás.htm

Available only in Selfemployment Hungarian.

  záró_hatékonyságvizsgálat_végső.doc 

Available only in Hungarian; About self-employment of women.

Part-time entrepreneurs

KSH hiring data

employment data

Parallel entrepreneurs    
Serial entrepreneurs    
Business transfers and successions

http://intermerger.co.uk/index.php?l_menu=34&b_menu=7&hidesearch=0

Payment required.

 

http://ec.europa.eu/youreurope/business/deciding-to-stop/transferring-ownership/hungary/index_en.htm

Material are only on Hungarian sites to find

Employment researches

munkapiaci-kutatások.pdf

Bibliography only

  Meghivo_kisero_az MRP_15_eve.pdf 

Available only in Hungarian ESOP discours.

 

Szabó K. -- Négyesi Á.: Az atipikus munka térnyerésének okai a

tudásgazdaságban. KSZ 2004/1

(Why atypical employment forms are gathering around in the knowlegde society)

 
  http://doktori-iskola.law.pte.hu/files/tiny_mce/File/Archiv2/Banko_Zoltan_PhD_ertekezes.pdf

Available only in Hungarian. A typical employment patterns in Hungary and in Europe

 

Szabó K.: A munkaviszonyok fellazulása. Információs Társadalom 2003/1 75-95

Flexibility. IT society Available only in Hungarian.

 

Kiss Gy.: Új foglalkoztatási módszerek a munkajog határán: az atipikus

foglalkoztatástól a szerződési típusválasztási kényszer versus

típusválasztási szabadság problematikájáig. (Kézirat, 2006.)

Manuscript

Available only in Hungarian.

Atypical employment patterns

 

Hovánszki A.: A tipikus és az atipikus foglalkoztatás Magyarországon.

MSZ 2005/7--8.

Typical and atypical employment patterns in Hungary

Available only in Hungarian.

 

Kiss Gy. -- Berke Gy. -- Bankó Z.: A munkajogi jogalkotás eszközei és

lehetőségei a foglakoztatás rugalmasságának alakításában. Pécs, 2008,

Justis.

Available only in Hungarian Labour rights and flexibility

 

Kártyás G.: A munkajog új kihívásai a XXI. század elején, különös

tekintettel a munkaerő-piac kettészakadására és az atipikus

foglalkoztatásra. In Kiss Gy. (szerk.): Emlékkönyv Román László

születésének 80. évfordulójára. Pécs, 2008, PTE ÁJK.

Labour rights in the XXI. century

Available only in Hungarian.

Other sources

Sándor Mátyási, Solution4.org

[1] HEFOP, http://www.szmm.gov.hu/main.php?folderID=13512&articleID=21276&ctag=articlelist&iid=1), and Social Renewal Operational Programme (TÁMOP, http://www.nfu.hu/doc/5). Comprehensive goals of HRD OP: Increasing level of employment, improve the competitiveness of workforce on the market by education, which is adequate to the needs of economy, promote social inclusion.

[2]Targets of TÁMOP:

• to improve the correspondence between the demands and offers on the labour market

• to minimise the regional differences of the activity

• to improve flexibility

• to improve life long learning

• to improve health and working capability

• to strengthen social cohesion and promoting equal opportunity

• to improve each of the interventions, the grouping operations around a specific target

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