State aid for small- and medium-sized enterprises is a theoretically and practically recommended purpose of such aid because it is intended to correct market failures and support enterprises which represent the most dynamic part of the business sector and the economy at large. As a result, governments have developed various mechanisms to stimulate entrepreneurship, and the growth and development of small- and medium-sized firms. In Slovenia, state aid for small- and medium-sized enterprises has also proven to be one of the most efficient purposes of such aid; they have led to increased employment, sales and productivity in the recipient enterprises. The same is true of the efficiency of this purpose of state aid relative to the amount of aid given.
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