Abstract

One of the most fascinating and least understood developments in Eastern Europe has been the explosive growth of private enterprises. This type of economic activity is not new in Eastern Europe. Although these enterprises were officially seen as obsolete “residues” from the previous non-socialist economic formation and, as such, destined to disappear, since the end of WWII various forms of legal, semi-legal, and illegal activities have survived and even thrived. Policies of expropriation and eviction actually peaked under Stalinism. After 1956, these policies were largely relaxed and, in Poland, small-scale, family-operated enterprises have generally been permitted.

Contrary to official expectations, private businesses have not only survived, but they have witnessed a real renaissance.