Book excerpt: The transformation of state-owned enterprises into privately owned ones is commonly referred to as 'privatization'. Just as important as this process, though sometimes not given the attention it deserves and requires, is the establishment and expansion of new private firms. This book analyzes new entrepreneurial firms that emerge and occasionally flourish after a period of state communism has come to an end. The authors rightly focus on the aftermath of the end of communism by looking first at the inevitable output decline, followed by an overview of new entrepreneurial firms. Specific East European examples are examined and the lessons which can be learned from these will interest academics and policy-makers alike. Committed and knowledgeable authors in this book treat the sometimes emotive issue of transition-developing economies maturely and expertly. The result is a volume which will interest scholars with an interest in transition economics and politics, as well as those who actively work in transition economies.