Fostering SME development in the Republic of Moldova

Small and medium-sized enterprises (SMEs) are the backbone of the economy in the Republic of Moldova and have significantly contributed to job creation and economic prosperity over the last decade. SMEs accounted for 98% of all businesses and provided around 60% of the country’s employment in 2011. SMEs were particularly affected by the global financial crisis which diminished international capital flows, bank lending, foreign direct investment, and consumer demand. With the crisis fading into the background, the Moldovan economic recovery will depend on the government’s ability to promote the growth of SMEs. On the one hand, policy makers must focus on encouraging the growth of micro-companies, as they make up 72% of SMEs in the Republic of Moldova and play an important social role. On the other hand, they should continue supporting the competitiveness of those SMEs which are relatively larger.