The Impact of Selected Changes in Business Environment on Small Enterprises in the Czech Republic
The Impact of Selected Changes in Business Environment on Small Enterprises in the Czech Republic

Author(s): Vendula Fialová, Andrea Kolková, Andrea Folvarčná, Radim Maňák
Subject(s): Politics / Political Sciences, Social Sciences, Economy
Published by: Vysoká škola ekonomická v Praze
Keywords: Entrepreneur; average wage; unemployment; social and health insurance
Summary/Abstract: Purpose: This article aims to explore the impact of selected factors of development in business environment on numbers of entrepreneurs doing business as main and secondary activity in the Czech Republic. To the chosen factors of entrepreneurial environment belong especially amount of average wage, amount of advances on social and health insurance, unemployment. The aim of the research is to demonstrate that changes in the aforementioned factors are associated with the development of numbers of entrepreneurs who do business as main and secondary activity, including a comparison in the various regions of the Czech Republic, especially in the Moravian-Silesian Region.Design/methodology/approach: This article aims to demonstrate the impact and the statistical dependence of selected factors on the state of business environment and the number of entrepreneurs entering into business as main and secondary activity and to find out why the number of full-time entrepreneurs has been steadily declining in the Czech Republic. The statistical data used for the research are from the years 2009 to 2016 and came from the Czech Statistical Office, from and the Czech Social Security Administration and General Medical Insurance. The research methods of regression and correlation analysis have been used to analyse the aforementioned data. Findings: The article did not unequivocally prove the connection between number of entrepreneurs conducting business as their main and secondary activity and the average wage, rate of unemployment, and the amount of social security and health insurance payments. Mutual ties were identified in Moravian-Silesian region as well as in the Czech Republic. Research/practical implications: The research points to how the changes in business environment affect number of self-employed people and how they may have a long-term effect on the willingness of people to start their own businesses. Given the diversity and multitude of influences of business environment, other effects should be explored and compared in the future in order to stop this decrease in number of self-employed people who conduct business as their main activity and prevent a possible lack of entrepreneurs in the future. Originality/value: The article opens up new perspectives on the development in the number of entrepreneurs in the Czech Republic and factors which can have an influence on the willingness of people to enter into business whether it be their main or secondary activity.

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