Innovation and Entrepreneurship in New Europe
Edited by Ruta Aidis and Friederike Welter
Chapter 5: The Case of Prohardver, a Stop-gap Business in Hungary: A Real Enterprise or a Trial Test of Strength for a Young, Talented Intellectual?
Ágnes Tibor INTRODUCTION In Hungary, where after 1956 the centrally-planned system was neither politically nor economically as censorious as in other countries of the region (Csillag and Lengyel 1985), some small businesses existed even before the ‘Velvet Revolution’ at the end of the 1980s. The old craftsmen who survived the 1950s, 1960s and 1970s diﬀered in almost all points of view from the young ambitious generation of businessmen of the 1980s, but both groups developed within the conﬁnes of the socialist system. The entrepreneurs who established their businesses after the great political changes in Eastern Europe may already have been the ‘products’ of a market-oriented economy, but they continued to reﬂect elements of the old system. The next two sections of this chapter will present these diﬀerent types of entrepreneurs as inﬂuenced by their particular circumstances. The following section introduces the present political and economical system in Hungary. In the next section, we focus on the case of a young, successful entrepreneur who was formed by the capitalist inﬂuences in a marketoriented Hungary. He typiﬁes the new generation of entrepreneurs in the IT sector who tend to be young and creative, to like challenges, and to be full of energy and business ideas. THE FIRST AND SECOND GENERATIONS OF ENTREPRENEURS IN POST-WAR HUNGARY (1945–81 AND 1982–88) When the ‘modern-day’ generation1 of promising new enterprises emerged in Hungary in the early 1980s, the requisite market, a corresponding 74 The case of Prohardver...
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