Our survey in the SME Outlook – twelfth in a row and conducted between 24 October and 9 November 2007 – focused not only on the business situation of SMEs, but also on their opinions about the economic and political environment.

Suppliers of large retail chains and daily consumer goods operating in the domestic market

We examined in our research relations and operating mechanisms of the suppliers of large retail chains and daily consumer goods operating in the domestic market using qualitative and quantitative approach. In our survey conducted in the first half of 2007 we contacted managers of supplying firms with interviews (15 of them) and with a structured questionnaire (392 firms). Due to the sensitive nature of the research we experienced a high rate of refusal, yet the statistical reviews performed corroborate that this fact did not distort research outcomes.

Global trends indicate that there is increased concentration underway in the retail industry, in the result of which large-scale retail chains play a so-called „gate-keeper” function in accessing the consumer, thus suppliers increasingly depend on them.

Research outcomes have corroborated that the waybuyer powermanifests itself, including the abuse of it, is well known and tangible in the Hungarian market also. The more powerful a retail chain is in terms of its size and the development of its organisation and tools, the more it avails of the potentials of these tools. Our research result suggests that it is not so much the firms that are weaker and more vulnerable in terms of their size and revenue that are affected to a greater extent, but rather the more powerful and dynamic firms the fundamental interest of which is to access an increasingly broader consumer pool and which, by the same token, have a greater potential to contribute to economic development.

It can also be established from the research outcomes that the impact of commercial chains on suppliers is contradictory: their prevalent power supremacy in their business relations and the consequential uncertainty and unpredictability that evolve in such business relations may result in market distortions. On the flip-side, however, a motivating impact of chains can also be ascertained manifesting itself in increasing innovation and product development on the supplier side.

Even though expectations are somewhat less cloudy than half a year ago, firms with pessimistic expectations still scarcely outweigh those with positive prospects. Regarding the longtime trough in 2007's economic growth, prospects might be insufficient for a perceptible upswing in 2008. Business confidence is less favorable in the services sector compared to manufacturing companies. It seems that building industry couldn't overcome the difficulties of the sectoral downturn in 2006. According to the responses businesses' total turnover remained unchanged in 2007 characterized by the contrast of sluggish domestic and vivid external demand. Same is true for expectations, which means that even the expected dynamic growth in exports could fail to outweigh negative effects of weak national sales. Balance figure for domestic sales decreased slightly, favorable balance figure for export sales remained almost unchanged. This is an important aspect, since export is still the main force behind economic activity in Hungary. In the services sector assessment of both present and expected turnover is far less favorable than in manufacturing which is true for domestic and export sales as well.

Our survey in the SME Outlook – eleventh in a row and conducted between 24 and 31 July 2007 – focused not only on the business situation of SMEs, but also on their debts, moreover the characteristics and causes of chain indebtedness.

Our survey in the SME Outlook – tenth in a row and conducted between 23 April and 30 April 2007 – focused not only on the business situation of SMEs, but also on their opinions about the administrative burdens and EU tendering practices. As our SME Outlook April 2006 also dealt with the administrative burdens of SMEs, we can determine whether there was a change in the opinions of enterprises in this question.

Increasing uncertainty and controversial anticipations of enterprises

Our survey in the SME Outlook – ninth in a row and conducted between 26 January and 6 February 2007 – focused not only on the business situation of SMEs, but also on their response to the certain actions in connection with tax rates and levies that the government has initiated lately. We can also compare the recent results with the data from SME Outlook July 2006, in order to compare the intended and the actual outcome of the effects of government actions on the SME sector.

Institute for Economic and Enterprise Research in collaboration with the Ministry of Social Affairs and Labour conducted a research on the expected demand of labour and short-term business expectations of enterprises.

Our recent study is based on a survey conducted in 2006, and it aims to measure the anticipations of SME's on business climate and employment trends, their opinion about student contracts, characteristics of practical training, and their satisfaction with the knowledge of recentvocational training graduates. We also took into consideration the opinion of students, their demographic characteristics, schoolcareer paths, aspirations, satisfaction with the programs and their mobility.

Our survey in the SME Outlook – eighth in a row and conducted between 17 October and 7 November 2006 – focused not only on the business situation of SMEs, but also on their opinions about the institutional and regulation environment.