Association of SME and Crafts of the CZECH REPUBLIC Barriers and Improvements of Business Environment in Growing Economy: Czech SME view Pavla Breckova Associate member of Board of Directors

SME – European View SME represent 99 % of all enterprises –i.e. cca 23 mil. companies –Employers of 75 mil. people  i.e. 2/3 EU citizens are employed in PRIVATE sector with SME In the EU average ent. employs 7 people

SMEs in CZ enterprises Market economy tradition in CZ from 1989 Total ent. in CZ: enterprises  SME 99,83 % Source: ČSÚ/MPO, April 2008 Data from 2007

SMEs = engine of national economy Small & Medium Sized enterprises employ > 61 % of all employees in CZ

Czech SMEs (engine of national economy) generate 53 % value added 54 % investments 54 % import 45 % export 35 % GDP

Gross Domestic Product CZ growth = 6,6 % (Q1/08) BLACK = reality GREEN = rough forecast till 2011

BARRIERS of Business Environment – Czech SME view Generally: Bureaucracy Extensive legislation Low law enforcement Officials’ liability Taxation Corruption SME ‘day-to-day’ perception: Lack of HR– impact of gvt incentives / social programs Business / Payment morals Info provision: duplicity / competitiveness cut Media: “criminal” image of Enterpreneurs

IMPROVEMENTS in CZ Business Environment Tax rate decline (income tax vs.social insurance) Legislation (electronization of public admin.) Arbitration court Access to Financial Sources Admin burden wind-down (slow): -The Trades Licencing Act – novel -In Hand: -Reduction of stat reports -E-code of law

ASSOCIATION OF SMALL AND MEDIUM- SIZED ENTERPRISES AND CRAFTS OF THE CZECH REPUBLIC [= AMSP CR] 3 pillars: INDEPENDENCEINDEPENDENCE EXPERTISEEXPERTISE PRACTICEPRACTICE

AMSP ČR – our activities  Tailored-made seminars for enterpreneurs & SMEs  Actual info provision (el.news / ent.workshops / seminars / web)  Publicity of SMEs in media (appreciation of righteous ent.,i.e.AMSP patronage / nomination in “Comp.&Ent.of the year”,“Gold Crown”,“Local hero” etc.)  Surveys in SME business environment  Expert commenting of law proposals  Participation in Business Board (= advisory body of Minister of Industry&Trade)  Consultancy  Cooperation with CzechTrade (export support)  Active participation in UEAPME (1st Vice- Chairman of AMSP B./of Dir.= Vice-president of UEAPME B./of Dir.)

AMSP ČR – proposals for further improvement of SME environment  Tax system siplification  Extension of officers’ liability  Protection of personal / specific data  Gov persuasion that enterpreneur is a ‘customer’  Electronical data sharing (& prevent duplicity)  Removal of SMEs discrimination with grants utilization  Simplification of foreigners employment (in relation to lack of HR at Czech market)

Thank you for your ATTENTION & COMMENTS