ten years after: hungarian big entrepreneurs in the european union
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Ten years after: Hungarian big entrepreneurs in the European Union. MihályLaki - Julia Szalai Institute of Economics – Institute of Sociology Hungarian Academy of Sciences. Definition (previous and follow up research) - PowerPoint PPT PresentationTRANSCRIPT
Ten years after: Hungarian big
entrepreneurs in the European Union
MihályLaki - Julia SzalaiInstitute of Economics – Institute of Sociology
Hungarian Academy of Sciences
Eighteenth Conference of Europeanists 2011 June 20-22 Barcelona, Spain
Eighteenth Conference of Europeanists 2011 June 20-22 Barcelona, Spain
Definition (previous and follow up research)
All the interviewed persons are owners of a decisive (in lot of cases majority) share of the stocks and they are the main decision makers at a company or at a group of companies with hundreds of employees and/or with 0.5-10 thousand million HUF (3-4 million Euro) turnover/year.
Eighteenth Conference of Europeanists 2011 June 20-22 Barcelona, Spain
Basic indicators
-male (92%)
-highly educated (88%)
-living in Budapest or in big towns
-older than 40 on the day of the interview (90%)
Eighteenth Conference of Europeanists 2011 June 20-22 Barcelona, Spain
Turning points of the carrier path and methods of acquisition
Turning point indicators Privatization Founding of new companies
Party membership
rather party member
rather non party member
Rank or position
rather top manager
rather staff member
Sector changes rather remained in the socialist sector tillv1989
rather moved into the private sector before 1989
Eighteenth Conference of Europeanists 2011 June 20-22 Barcelona, Spain
Performance measured by company development 1990-1999
START UP SIZE
OF THE COMPANY
SIZE OF THE COMPANY IN THE TIME OF THE INTERVIEW
TOTAL
small medium size big
small - 15 11 26
medium size - 7 6 13
big - - 7 7
uncertain - - 2 2
Total - 22 26 48
Eighteenth Conference of Europeanists 2011 June 20-22 Barcelona, Spain
Conclusion of our previous research
„The strategy of adaptation has again been successful, as the earlier statistical data indicate, and domestic grand business has been able to maintain its share and its position. In light of such renewed success EU accession seems to promise easier conditions and mowing forward rather than collapsing. Obviously, it is a new phase with new challenges for adaptation, but after all, this is very area in which Hungarian grand entrepreneurs have for decades shown their most outstanding performance.”
Eighteenth Conference of Europeanists 2011 June 20-22 Barcelona, Spain
Performance measured by company development 2000-2008
START UP SIZE
OF THE COMPANY
SIZE OF THE COMPANY IN THE TIME OF THE INTERVIEW
TOTAL
small medium size big
small - - - -
medium size 9 8 3 20
big 6 2 15 23
uncertain
Total 15 10 18 43
Eighteenth Conference of Europeanists 2011 June 20-22 Barcelona, Spain
Growth of GDP industrial production and of the number of companies
Period yearly average growth of GDP (%)
yearly average growth of industrial production (%)
Number of companies
1983-1989 1.5 1.5 fast growth
1990-1993 - 4.7 - 4,6 fast growth
1994-2002 3.6 7.5 fast growth till 1998 later slow down
2003-2008 3.1 6.3 slow growth
Eighteenth Conference of Europeanists 2011 June 20-22 Barcelona, Spain
Taxes as % of GDP in HungaryYear Current tax burden Total taxes
(including SSC) as % of GDP in
Total taxes (including SSC as % of GDP EU 25 arithmetic)
1995 2353.3 41,6 36,91996 2790.1 40,6 37,31997 3332.1 39.0 37,51998 3946.7 39,0 37,51999 4461.1 39.1 37,82000 5231.4 38.5 37,92001 5843.3 38.3 37,62002 6511.8 38.0 37,42003 7129.0 37.7 37,42004 7788.5 37.6 37,22005 8244.2 37.5 37,62006 8842.3 37.2 37,72007 10113.1 39.8 38,22008 10731.52009 10271.5
2011 June 20-22 Barcelona, SpainEighteenth Conference of Europeanists
Volume of company loans compare to GDP 1999-2008 (%)
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Company loans 21.02 22.7 21.45 19.38 21.57 22.61 24.12 24.87 26.16 27.42
Loans for small and medium size companies
4.05 6.68 8.39 8.16 9.43 10.75 12.72 13.19 14.36 14.09
Eighteenth Conference of Europeanists 2011 June 20-22 Barcelona, Spain
The distribution of subscribed capital of enterprises with single and double entry in 1992-2009
THE DOMINANT OWNER ISYear State
Hungarian private person
Hungarian company
Foreign person or company
Other Total
1992 52,1 10,2 0,0 11,4 26,2 100,01994 44,5 10,7 17,6 17,8 9,5 100,01995 25,7
11,5 19,1 26,8 17,0 100,0
1997 13,5
10,5 22,6 35,0 18,4 100,0
1998 12,0 10,7 25,6 40,3 11,3 100,01999 9,2 9,1 18,0 51,6 9,5 100,02000 7,9 9,2 20,6 58,5 6,4 100,02001 7,7 8,8 17,0
60,1 6,4 100,0
2002+ 12.3 13.2 24.5 40.2 9.9 100.02003+ 13.3 12.9 22.0 44.2 7.7 100.02004 13.3 14.0 24.0 40.7 8.1 100.02005 8.9 15.1 24.0 40.9 11.1 100.02006 8.1 14.0 25.0 44.2 8.7 100.02007 6.6 13.1 30.9 40.6 8.4 100.02008 6.5 10.4 25.7 50.0 7.2 100.0
Eighteenth Conference of Europeanists 2011 June 20-22 Barcelona, Spain
Number of popular forms of registered economic organizations Year Number of company limited Previous year =100 %
Number of individual proprietorships
Previous year =100 %
1989 17341 320619
1990 26807 154.6 393450 122.7
1991 43439 268.0 510459 129.7
1992 60762 164.0 608207 119.1
1993 86867 142.9 715105 117.6
1994 121128 139.4 778026 108.8
1995 106245 87.7 791496 101.7
1996 125940 118.5 745247 94.2
1997 147388 117.0 659690 88.5
1998 162588 110,3 648701 98,3
1999 165307 101,7 660139 101,7
2000 171495 103,9 682925 103,3
2001 177424 103.5 698001 102.3
2002 186744 105.2 708503 101.5
2003 197667 105.8 716729 101.1
2004 214151 108.3 717323 100.1
2005 228586 106.7 710838 99.0
2006 242851 106.4 670203 94.3
2007 261907 107,8 702595 104.8
2008 297060 113,4 1000022 142,3
2009 324906 109,3 1012770 101,2
Eighteenth Conference of Europeanists 2011 June 20-22 Barcelona, Spain
Optimism/pessimism indicator
Questions 1997 1998 1999 2003 2005 2007 2008 2009
How do you evaluate the present conditions of the Hungarian economy?
-29 -27 -41 -41 -55 -74 - 79
How do you evaluate the prospects of the Hungarian economy?
11 20 -4 -26 -3 -20 -62 - 26
How do you evaluate the present conditions of your enterprise
-11 -13 -6 -11 -13 -18 -17 - 26
How do you evaluate the prospects of your enterprise?
1 4 2 -7 -5 -8 -29 - 19
Eighteenth Conference of Europeanists 2011 June 20-22 Barcelona, Spain
The usual way of market development in the
second decade
- the collapse of state owned companies produces additional demand
- enter to the (shortage) market or market niches of these previous/privatized companies
was lucrative
- fast growing market share on these markets stimulate other (Hungarian or foreign)
companies to enter
- the impacts of the additional demand disappeared these markets began to saturate –
mainly in the first years of the new century
- the newcomers (multinational companies for example) used very efficient tools of
competition
- the market share of the previous participants of the competition diminishes
Eighteenth Conference of Europeanists 2011 June 20-22 Barcelona, Spain
Index of confidence 1996-2010
Prepared by GKI Economic Research Co
Eighteenth Conference of Europeanists 2011 June 20-22 Barcelona, Spain
Some elements of the successful adaptation
diversification
new markets or market niches at home and abroad
restructuring the network capital (cooperation with the multinationals – subcontracting)
implementation of West European management methods