Acta Univ. Agric. Silvic. Mendelianae Brun. 2015, 63, 2077-2084
Published online 2015-12-26

SMEs Growth in the Czech Republic: Some Macroeconomic Perspectives

Christian Nedu Osakwe1, Nahanga Verter2, Věra Bečvářová2, Miloslava Chovancová1

1Faculty of Economics and Management, Tomas Bata University in Zlín, nám. T. G. Masaryka 5555, 760 01 Zlín, Czech Republic
2Department of Regional and Business Economics, Mendel University in Brno, Zemědělská 1, 613 00 Brno, Czech Republic

Small and medium enterprises (SMEs) are seen as a vehicle for employment generation, wealth creation, economic growth and development in countries that have a sound investment climate. SMEs, account for approximately one-third of GDP, over 50% of the value added, 99% of the share of total registered enterprises, and represent 60% of total employment in the Czech Republic. In the light of this background, the paper explores the influence of some macroeconomic variables on SMEs growth in the Czech Republic for the period 1995–2013. In order to assess the impacts of these critical macroeconomic variables (e.g., rate of unemployment, economic growth, credit provided by the financial sector) on SMEs growth, we employed an econometric technique. Our findings suggest a concave relationship between unemployment and SMEs growth in the Czech Republic. More precisely, it signifies that beyond a turning point, unemployment is likely to slow down SMEs growth in the country. Our results further hint at a positive relationship between economic growth and SMEs growth. However, our empirical estimates showed an insignificant relationship between domestic credit provided by the financial sector and SMEs growth in the country. The government of the Czech Republic should continue to provide an enabling investment climate and support for bolstering a sustainable SMEs development within the country. Similar to the extant literature, we have also implored the Czech government to do more with regard to the provision of easier access and affordable credits/loans to SMEs. We have also called for the reduction of bureaucratic bottlenecks that might have to do with SMEs legislations in the country.


The article received support from the Internal Grant Agency of FaME TBU in Zlín (IGA/FaME/2015/039), and IGA FRRMS MENDELU (No. 18/2015).


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