Small and medium-sized enterprises Viktorie Klímová klimova@econ.muni.cz Importance of SMEs * Business environment * Structural changes * Stabilizing element EU: backbone of European economy Economic and social contribution § structural changes § subcontractors § new technologies § marginal areas of the market § development of regions § new jobs § main factor of economic development Disadvantages of SMEs § low economic power § access to capital § education, information, consulting § unfair competition, dumping § public contracts § payment habits § administrative requirements Czech business environment § enforceability of law § regulation of bankruptcy § corporate registration § environmental legislation § tax system and tax rates § lack of capital § workforce Some statistics about SMEs Definition of SMEs Medium enterprise * Fewer than 250 employees * Assets 43 MEUR or net turnover 50 MEUR (or equivalent in Czech crowns) Definition of SMEs Small enterprise * Fewer than 50 employees * Assets or net turnover 10 MEUR (or equivalent in Czech crowns) Definition of SMEs Micro firm * Fewer than 10 employees * Assets or net turnover 2 MEUR (or equivalent in Czech crowns) Targets of support policy The long-term objective of the policy is to allow small and medium-sized enterprises to function, so that this sector will be able to contribute to: * the output of the national economy, * technological progress, * competitiveness, * reduction of unemployment, and * regional, social and economic differentiation - the basic prerequisites for economic development of the society. Targets of support policy Mid-term objectives: * increase the share of SMEs in the economic growth * increase the competitiveness of SMEs * create conditions stimulating to entrepreneurship * adapt the existing system of institutions and instruments * development of human resources Indirect x direct support Indirect support: § create a favourable environment § easier administration, information, training, consulting, industrial zones Direct support: § access to finance Forms of the support * returnable loan * grant * guarantee * credit with a reduced interest rate Using the support For example: - investment projects - professional skills - consulting - research and development - contacts and cooperation - quality of the production Effects of accession of the CR to the EU Advantages: * harmonization of legislation * stabilization of business environment * legal protection * rules of economic competition * public contracts * programmes of the EU Effects of accession of the CR to the EU Disadvantages * demands for environmental requirements * consumer protection * industrial law * safety and health protection at work Types of commerce support * State budget * European Structural funds - Operating Programme Industry and Entrepreneurship - OP for the Development of Human Resources - Joint Region Operating Programme State budget 2005-2006 * Záruka (Guarantee) * Trh (Market) * Progres * Poradenství (Consulting) * Design * Aliance * Zastoupení (Representation) OP Industry and Entrepreneurship Priorities 1 Development of the business environment 2 Development of the competitiveness of enterprises 3 Technical assistance 17.94 % of all resources for the structural policy 260,852,000 EUR OP Industry and Entrepreneurship Programmes: Prosperity * Reality * Training centres * Clusters * Marketing * Start * Credit * Development * Innovation * Energy savings * Renewable sources of energy OP for the Development of Human Resources Five priorities: 1 Active Employment Policy 2 Social integration and equal opportunities 3 Development of life-long learning 4 Adaptability and entrepreneurship 5 Technical assistance OP for the Development of Human Resources Measures of Priority 4: * 4.1 Standard development of human resources * 4.2 Profession Joint Regional Operating Programme * Regional promotion of entrepreneurship * Regional development of the infrastructure * Development of human resources * Development of tourism * Technical assistance EUR 454,333,000 from SF Institutions Ministry of Industry and Trade CzechInvest Czech-Moravian Guarantee and Development Bank Design Centre of the Czech republic Business Innovating Centres (BIC) Regional Consulting and Information Centres More information * www.mpo.cz * www.cmzrb.cz * www.czechinvest.org * www.czechtrade.cz * www.designcentrum.cz * www.strukturalni-fondy.cz * www.businessinfo.cz