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This text analyses the barriers faced by new private firms in five countries at different stages of transition: the Czech Republic, Hungary and Poland as the front-runners of the process, and Albania and Lithuania which followed them later. It is well established that the new private firm sector is the engine of growth in transition economies. But the entry of new firms is closely related to the nature of the existing regulatory and fiscal framework, specifically the registration and licensing requirements, rules on sale or lease of real estate, export and import regulations, and taxes and contributions. These barriers invariably lead entrepreneurs to conduct some or all of their business outside the official economy or, in some cases, discourage them from entry altogether. Contributors to the book are academic economists and policy makers with wide ranging experiences of the transition process. They have been closely involved in formulating economic policies, advising governments of transitions countries, and conducting research on different aspects of market oriented reforms. They provide comprehensive reviews of the existing rules and regulations affecting entry and their impact on private sector development in each country. They also draw on the results of a survey of 400 enterprises in five transition economies, highlighting the range of government-imposed barriers affecting new firms.
