Development of Small and Medium Enterprises in the Slovak Republic

Abstract

Purpose of the article: Slovakia's accession to the EU caused an increased role for small and medium entrepreneurship in the economy and simultaneously increased the requirements for this sector of the economy in view of the high competition in the European market. At the same time small and medium-sized enterprises SR face major difficulties which adversely affect their development. In this context, it is necessary to continuously monitor the business environment for the purpose of removing obstacles to business. Methodology/methods: The method of research is time series analysis of small and medium-sized enterprises SR, analysis of the structure of economic activity, synthesis of information provided by various institutions dealing with the rating business. Scientific aim: The article is to examine trends in the development of small and medium enterprises in Slovakia during the year 2004 - 2009 and evaluate the current business environment of the SR. Findings: The analysis shows that the number of small and medium-sized enterprises in the years 2004-2009 in Slovakia has an increasing trend. During this period, major barriers have been removed in the normative and legal acts, particularly the creation of new firms, has made tax reform introduced a flat tax on income, to adopt transparent rules on state aid to investors. Positive impact on the development of small and medium-sized enterprises have so stable macroeconomic and political situation in Slovakia. Conclusions (limits, implications etc) However, there remains a considerable number of factors that complicate their development. In particular, it is a poor law enforcement, inadequate capacity, quality and availability of credit information for efficient and safe lending, which has restricted access to bank loans, lack of qualified entrepreneurs, large scale and long term to meet the established administrative procedures, high tax and contribution burden , fee burden on businesses, the low level of protection of investors. To improve the business environment is necessary to remove these barriers.