The Cutting Edge
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The Cutting Edge

Innovation and Entrepreneurship in New Europe

Edited by Ruta Aidis and Friederike Welter

This original selection of case studies from eight new EU member countries looks at the ability of entrepreneurs to develop innovative and successful firms in an environment of turbulent social and economic change.
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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


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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