Small and Medium-Sized Establishments in Western Europe

Regional patterns and trends of small and medium-sized enterprises are becoming increasingly important in the framework of the regional policies pursued by the various member countries of the European Community. The lack of success of traditional instruments, aimed at the transfer of industrial activity to assisted regions, has led to the recognition of the relevance of indigenous potential from both the regional policy and regional science perspectives. This shift in emphasis has generated a series of investigations into forms and conditions of promotion of indigenous regional development. Although much neglected in empirical studies ¹ , in this connection small and medium-sized enterprises (subsequently referred to as SMEs) play a key role. Whereas transfer-related policies aim at the attraction of large companies, the creation or extension of SMEs in backward or depressed regions is arguably the only feasible basis for indigenous regional economic development.