The aim of this study was the attempt to identify the external and internal conditions of shaping the competitive position of small companies. The study was conducted on a sample of 102 micro and small enterprises in rural and small-town environment. According to the entrepreneurs the most important external factor conditioning the business development is the macroeconomic stabilization, the size of the demand (level of income) of the population, as well as the support from the local government. Also, the entrepreneurs recognize the quality of products/services as the most important source of competitiveness and they allocate their investments most frequently for providing it.


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