ABSTRACT
This chapter analyzes the development of the small and medium sized enterprise (SME) sector in Romania in the global context of transition to the market economy as compared to the similar levels from other transitional economies from the Central and Eastern Europe. It is almost impossible to conduct a thorough analysis of the emergence and development of the SME sector. Since 1989, Romania as well as other Central and Eastern European Countries, has experienced the process of transition to the market economy with all the constraints and difficulties involved. The chapter presents the main problems SMEs are confronting, all of which can be divided in two broad categories: external problems, relating to the specific evolution of the business environment and internal problems, relating to the way the enterprise organizes itself and performs its specific activities.
