Study of legislative and administrative obstacles to SMEs business in the Czech Republic and Slovakia

Abstract

Research background: SMEs represent an integral part of the economy environment in a majority of the countries all over the world. They signify the most efficient, progressive, and important part of the advanced economies. The long-term effort of the EU countries, as well as other advanced economies is to create quality and stable conditions for their development in order to be able to respond to all the possible changes in the business environment that is being changed to more and more comprehensive in the recent time. Purpose of the article: The objective of the contribution is to examine administrative and legislative obstacles to SMEs business in the Czech Republic and Slovakia and the quantification of the differences in perceiving legislative and administrative obstacles to business by entrepreneurs in both countries. Methods: A questionnaire survey was conducted within SMEs in the Czech Republic and Slovakia in 2019. The research sample included 641 SMEs, 312 from the Czech Republic and 329 from Slovakia. We focused on 5 dimensions related to legislative and administrative obstacles to SMEs business within which selected statements were examined. Contingency tables were used to analyze the ratios of the examined variables. Findings & Value added: The differences detected in both countries in the respondents´ perception and assessment are evidence of the changes in the business environment of both countries, giving rise to the questions about the extent to which the legislative and administrative obstacles, as well as the obstacles related to law enforcement and bureaucracy are acceptable and by which groups of entrepreneurs. The results of the research provide valuable findings for the creators of regional and national policies, and represent a valuable basis for the creation of the concepts focused on the SMEs´ development in both countries.  The results of the study also support the implementation of follow-up research in this area that will reveal other determinants affecting the development of SMEs. They also create a valuable platform for the construction of national and international benchmarking indicators in this area and the implementation of comparative analyses. This will also support the methodological area necessary for a creation of high-quality concepts and strategies.