In the internationalization process of a firm, the choice of a suitable entry strategy for the foreign target market plays a vital role . For small and medium-sized companies in the service industry, even more challenges emerge in this process. This study examines the market entry strategies employed by Austrian small and medium-sized service enterprises operating in the emerging markets of Central and Eastern Europe. Fifteen case studies of Austrian service companies are analysed. The results show differing strategies and the importance of establishing and cultivating relationships for a successful market entry.