By Dr. Judit Csákné Filep,

The expansion of the family firm model has long been established as a global phenomenon. The existence and, more importantly, the survival of family businesses is greatly dependent on their socio-economic and political contexts.

IMD LFO

In many European transitional economies such as Hungary’s, the right to establish a family business has only recently been granted. After the Second World War, entrepreneurship in Hungary was largely discouraged. For decades, the country was under Communist rule with a centralised planning system. In 1968, limited aspects of market economy were introduced. Legislations permitting the establishment of quasi-private businesses were put in place in 1982, allowing mostly licensed artisans to set up their own firms. In the late 1980s, corporate Law finally gave rise to a surge of private enterprises.