Acta Univ. Agric. Silvic. Mendelianae Brun. 2012, 60(7), 61-70 | DOI: 10.11118/actaun201260070061

Development of number of employees in the Czech companies with venture capital investment

Anna Fedorová, Jaroslava Rajchlová

Ústav financí, Fakulta podnikatelská, Vysoké učení technické v Brně, Kolejní 2906/4, 612 00 Brno, Česká republika

According to Schefzyk (2006), creating of new job opportunities in companies financed by venture capital ranks among the most considerable economic impacts of venture capital on companies and national economy. Such obvious conclusions can not be identified in other foreign studies; therefore, a piece of research was undertaken with the aim to prove whether venture capital - in the conditions of the Czech Republic - contributed to any growth of number of employees in the companies with its participation.
Partial objectives in two levels were formulated to accomplish primary objective: the first partial objective was the identification and evaluation of development of number of employees in the individual companies funded by venture capital, namely in the period of one year prior to its entry, in the period of co-existence and in the period of maximally three years following the venture capital investment exit out of such companies. The second partial objective was represented by the comparison of development of number of employees in the companies with venture capital with development of employment rate in the Czech Republic. Collected research material comes out from the data of all business subjects financed by venture capital in the Czech Republic in the period from 1998 until 2011. Quantitative research method and subsequent logical inductions were employed to reach established research primary objective. On the basis of collected data on annual average converted number of employees in the companies per individual years their chain indices, subsequently assessed, were calculated.
In the research conclusions the authors observe that the statement on positive influence of venture capital on the employment growth in the companies with its participation can not be confirmed in the conditions of the Czech Republic.

Keywords: company financing, venture capital, annual average converted number of employees, chain indices, corroboration of statement on venture capital influence

Grants and funding:

This paper was supported by the grant FP-S-12-1 "Efficient Management of Enterprises with Regard to Development in Global Markets" from the Internal Grant Agency at Brno University of Technology.

Received: August 31, 2012; Published: July 2, 2013  Show citation