The problem and the solution. Of the 20 million or so firms in Europe, 99% are small and medium enterprises (SMEs) that employ fewer than 250 people and account for two thirds of the European workforce. Faced with increased global competition, mainly from Asian and U.S. firms, Europe’s policy makers are concerned with improving the quality of management in the SME sector. Because of the marginality (economic, cultural, personal) of small firms, however, it is generally assumed that these firms are too preoccupied with entrepreneurial activity and/or survival to take a sustained interest in management development. Is this the case?
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