Incentives, or we normally say subsidies are very important to small and medium enterprises in any country. Since the SMEs are already short in terms of resources, especially the financial resources, and most of the times it gets difficult for them to survive in a highly competitive market, whether local or international, until and unless they are supported by the subsidies or incentives by their respective governments.
From my practice, the idea was to establish a friendly and collaborative atmosphere by organisation some little events like barbecues. Besides, they offered more working flexibility and the chance for having higher influence in the decision making process.
Today, that is changing as some reforms are ongoing and access to EU is worked on. Some incentives exist for especially some enterprises while others get less and yet some nothing. Its a competitive market.