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Small and medium-sized enterprises as the stabilizer of national economies

VÁCHAL, Jan and Jarmila STRAKOVÁ

Basic information

Original name

Small and medium-sized enterprises as the stabilizer of national economies

Name in Czech

Malé a střední podnikání jako stabilizátor národních ekonomik

Edition

1. vyd. České Budějovice, Innovative Economic Symposium 2015, p. 1-8, 9 pp. 2015

Publisher

Vysoká škola technická a ekonomická v Českých Budějovicích

Other information

Language

English

Type of outcome

Proceedings paper

Field of Study

50200 5.2 Economics and Business

Country of publisher

Czech Republic

Confidentiality degree

is not subject to a state or trade secret

Publication form

storage medium (CD, DVD, flash disk)

Organization unit

Institute of Technology and Business in České Budějovice

ISSN

Keywords (in Czech)

malé a střední podniky; ekonomické systémy; paradigma; transformace

Keywords in English

small and medium-sized enterprises; economic systems; paradigm; transformation
Changed: 4/2/2016 10:34, Mgr. Václav Karas

Abstract

V originále

The basic terms with which to define small and medium-sized enterprises (hereinafter re-ferred to as “SMEs”) in the Czech Republic and the EU are presented here. This contribution has been compiled in response to the basic development paradigm for today’s national economies, the European economy and the world economy, whereby there is a trend to-wards the development of national or multinational corporations and at the same time the need for small and medium-sized companies to stabilize state economic systems. This trend is particularly strong in times of economic fluctuation and crises as events have shown over the recent past. This is documented in data included in the Report on the De-velopment of Small and Medium-sized Enterprises and their Support, from 2010. Small and medium-sized enterprises form more than 99% of the total number of active enterprises in the Czech Republic. They create nearly 2 million jobs and employ more than 60% of those people working in the private sector. The above data demonstrates the irreplaceable role the SME sector plays in national economies and the European economy as a whole in terms of employment, society and technological advancement. The importance of their role is despite the fact that SMEs have considerable drawbacks. These drawbacks will be high-lighted in this contribution too. It is also true that the role of SMEs in countries where a market economy is in its infancy is of greater importance than in those counties with fully developed market economies. It is indisputable that SMEs played a positive and stabilizing role during the period of transformation of the Czech economy. The number of small and medium-sized enterprises has grown steadily over the last 20 years. This is reflected in the increasing influence they have on the social environment and social relations in the coun-try. On a global scale it can also be said that SMEs form the majority of businesses. Howev-er, we are now witnesses to the growing competition between SMEs and national and mul-tinational corporations.