Acta Univ. Agric. Silvic. Mendelianae Brun. 2011, 59(7), 317-324 | DOI: 10.11118/actaun201159070317

Proposing changes in legislative and institutional conditions for private equity and venture capital financing in the Czech Republic - a comparative study with Poland

Jaroslava Rajchlová1, Michaela Baranyková1, Michal Polák1, Zdeněk Brož2
1 Ústav financí, Fakulta podnikatelská, Vysoké učení technické v Brně, Kolejní 2906/4, 612 00 Brno, Česká republika
2 Ústav informatiky, Fakulta podnikatelská, Vysoké učení technické v Brně, Kolejní 2906/4, 612 00 Brno, Česká republika

This paper discusses the conditions of private equity and venture capital financing in the Czech Republic and Poland. Especially the related legislation, taxes and support of this type of financing are discussed in detail. The purpose of this research is to evaluate the conditions, to find factors that have positive influence and to formulate recommendations that would improve the conditions for both PE/VC investors and firms with new business ideas. Improving the conditions for PE/VC financing helps small businesses get the needed capital that cannot be obtained from banks and other institutions. This form of financing has a proven positive effect on whole economy. Identifying and removing obstacles is therefore important and helps the government to promote economic growth. This form of financing is used frequently in other European countries. In the central and eastern Europe it is not used as frequently but the situation is improving according to (Zinecker & Rajchlová, 2010). According to the study made by EVCA an array of legislative shortcoming were identified in the Czech Republic. Poland and Hungary have better conditions for PE/VC financing. According to EVCA studies made in 2004 and 2006 Poland shows that the conditions improve each year. Therefore Poland was chosen in this research for a comparative study with the Czech Republic.

Keywords: private equity, venture capital, tax, legislation, support, SMEs
Grants and funding:

This research is a part of the research project called "Research on the information support of business enterprise management" registered at the internal research agency of the Faculty of Business and Management of the Brno University of Technology with identification number FP-S-11-1.

Received: September 1, 2011; Published: January 26, 2014  Show citation

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Rajchlová, J., Baranyková, M., Polák, M., & Brož, Z. (2011). Proposing changes in legislative and institutional conditions for private equity and venture capital financing in the Czech Republic - a comparative study with Poland. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 59(7), 317-324. doi: 10.11118/actaun201159070317
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