The Perception of Governmental Support in The Context of Competitiveness of SMEs in the Czech Republic

• Main Authors: Dobes Kamil, Kot Sebastian, Kramolis Jan, Sopkova Gabriela
• Format: Article
• Language: English
• Published: Tomas Bata University in Zlín 2017-09-01
• Series: Journal of Competitiveness
• Subjects: business environment; small and medium-sized enterprises; state
• Online Access: https://www.cjournal.cz/files/256.pdf

Whether or not an entrepreneur develops the enterprise successfully and increases competitiveness depends on many factors. All businesses, however, are inherently connected with the business environment which significantly influences their performance. In this regard, the state is among the most important factors. It also performs many other roles through which it may be either helpful or harmful in the eyes of a business owner, e.g. it determines the legislative framework of entrepreneurship, sets conditions for starting a business and regulates competition. The way the role of the state is perceived by small and medium-sized enterprises was researched in 2015 as a part of a project at Tomas Bata University in Zlín. The research analysed data from 1,141 respondents from all regions of the Czech Republic and included, among others, the question of the state’s role in the business environment. The presented paper covers three selected areas of the state’s influence on the business environment: creating favourable conditions for the business environment, governmental financial support of entrepreneurs, and administrative burden on entrepreneurs. These areas were also examined with the emphasis on the analysis of differences between the perception of entrepreneurs from different industries and entrepreneurs with different sizes of their businesses. It was revealed that entrepreneurs were very critical to the state’s role in the business environment; in particular, 60% of respondents disagree with the fact that the state creates favourable conditions for business in the Czech Republic. It was proved that the line of business of enterprises correlates with perception of the state’s role within the business environment. The research into perception of a governmental financial support was proved to be dependent on a company size which may signal the support of certain company sizes and influencing their competitiveness.