The Development of Small and Medium-Sized Enterprises in the Trade and Tourism Sectors from the Pre-Pandemic Period to 2025: Accounting Approaches and Economic Impacts

Abstract

Micro-, small and medium-sized enterprises (MSME) are key actors in the modern economy, indispensable for employment, GDP production, and the maintenance of economic stability in local communities. This study examines the development of the MSME sector from the pre-pandemic period to 2025 in Hungary and Ukraine, with a particular focus on Transcarpathia and Szabolcs-Szatmár-Bereg County, through an accounting and economic approach. The aim of the research was to explore how crisis situations-such as the pandemic, economic uncertainty, inflationary pressures, and, in the case of Ukraine, the conditions of war-have influenced the accounting practices of enterprises, their sectoral presence, and their long-term sustainability.

The Hungarian MSME sector, as part of the European Union, operates within more regulated, transparent, and predictable frameworks that ensure long-term planning. During the period under review, the number of enterprises showed moderate growth, followed by a slight decline, while flexible taxation systems, liquidity management, and both state and EU subsidies played an important role in accounting adaptation. Enterprises in Szabolcs-Szatmár-Bereg County maintained their stable national share in trade and vehicle repair, while in tourism and hospitality the pandemic and inflationary effects resulted in long-term fragility.

In Ukraine, and especially in Transcarpathia, the number and proportion of enterprises displayed a far more fluctuating trend. The dominance of MSME was striking, typically accounting for 85–90% of all enterprises, yet their accounting practices were mainly defined by short-term survival. The complete shutdown of tourism during the pandemic, followed by the war environment from 2022 onwards, led to the simplification and, in many cases, the minimization of accounting records. As a result, transparency deteriorated, investor confidence declined, and long-term planning was pushed into the background.

Based on the comparative analysis, the fundamental difference between the two countries lies not in the economic importance of MSME, but in the stability of the accounting and regulatory environment. In Hungary, enterprise balance sheets and financial statements became tools of adaptation that support planning and resource acquisition, while in Ukraine accounting practices primarily served survival, without long-term security.

The conclusions of this study highlight that for the development of MSME, the stability of the accounting framework, the strengthening of transparency, and the elaboration of adaptive solutions to crises are of key importance. Further research may focus on identifying specific instruments of accounting flexibility, financial strategies employed during crises, and the integration of international aid and resources into the financial systems of enterprises.