Entrepreneurship is growing in Hungery, as the country slowly disengages from socialism. Hungary in 1992 has been described as being in the midst of a great experiment. Hungarian culture has many qualities that were advantageous to moving towards capitalism. Hungary has a homogeneous population and contact with a democratic and capitalist EU, so its transition was not marked with rival ethnic groups struggle for power. In Hungary, small business development gathered momentum in the early nineties, after the economic change of regime, in the wake of the wave of socialist enterprise that had started in the early eighties. Entrepreneurship in Europe in general isn’t as high as say the US, but one sign of hope for Europeans stems from stronger entrepreneurial spirit in the newer members of the European Union which includes Hungary.