In early 1992, Consulting & Research for Industrial Economics Ltd. and the Institute for Industrial Economics set up an open, non-profit, non partisan foundation for the public welfare, called Foundation for Market Economy. The foundation is run by a small team of qualified full-time and part-time researchers, in form of project financing. FME is led by a board of trustees and controlled by a board of supervision.

The foundation strives to contribute to the emergence of an enterprise-friendly legal and economic environment through research, the adaptation of international experience, and the creation of awareness of the social and economic importance of small- and medium-sized companies.

Furthermore, the foundation aims to contribute to shaping public opinion on market economy. To this end, workshops are organised, lectures are delivered at international conferences and articles are regularly published.

The foundation's primary task is the research of problems resulting from the spread of market economy. Furthermore, it aims to use research results in the preparation of legislature, economic and training policies and public relations. Research carried out and initiated by the foundation is utilised by legislative and government entities as well as by SME advocacy organisations when making and implementing decisions.

Special emphasis is laid on the following strategic issues of the transition to and development of market economy:

• ownership structures, privatisation, the condition of the private sector, the state's economic role, and direct foreign investments;

• research aimed at contributing to a well-thought-out economic policy: industrial policy, regional development, strategic and tactical questions of specific foreign trade tasks (competition policy and market protection, conditions of EU membership);

• research aiming to promote the formation and growth of enterprises in general and SMEs in particular.

The research involves the assessment of organisations' condition and social-economic environment, as well as the factors affecting their operation and development, including regional aspects. Furthermore, recommendations are made as to the necessary changes. The results should contribute to a sound economic policy by promoting the development and efficiency of market economy.

The foundation, usually as a member of international consortia, regularly participates in Phare ACE and TACIS tenders, mainly focusing on the regional comparative analysis of small and medium-sized companies. The foundation has been included in the central Phare/TACIS registry of consultants under the number HUN-20768.

FME has participated in the programs on legal and regulatory reforms and on building out the institutions of a market economy (promoted by CIPE). Our focus was on the problems of small business development, of informal sector and of interest representing organisations in Hungary.

Usually acting as a topic co-ordinator or as advisors, the foundation regularly contributes to international comparative studies prepared with partner entities in Central, East and South Europe under the auspices of NGO Regional Networking Projects (promoted by Freedom House). Some of the titles: “The Transparency of Public Procurement Procedures and Accession by SMEs"; “Cross-border Co-operation of SME's"; “Conditions for Long-term Growth and Prosperity on the Balkans".

The above domestic and international programs consist of research and advocacy projects. Advocacy projects involve the summarisation of the research results and an attempt at a wide public exposure to our recommendations.

The foundation's leaders lay great emphasis on establishing and maintaining ties with related domestic and foreign institutions. Co-operation agreements have been concluded and liaisons are maintained with the following institutions: Center for International Private Enterprise (CIPE), Current Issues/Congressional Information Service, Inc. (CIS), Freedom House, International Center for Economic Growth (ICEG), Committee of the Hungarian Academy of Sciences (MTA) for Industrial Economics etc.

FME has been a corresponding member of the International Center for Economic Growth (ICEG) since 1993, thus being able to contact 340 institutions in over 100 countries around the world. Further, the foundation is a founding member of The Network of Emerging European Economies (3Enet), an entity established in 1997 to unite the non-profit “think tanks" for economic research of Central, East and South European countries. Thanks to the surge in IT-based communication, some policy papers from the foundation's English-language research materials are included in Current Issues SourceFile of the Congressional Information Service (CIS).