Entrepreneurship in transition countries: a review

The aim of this paper is to provide an overview of the key issues surrounding entrepreneurship development in transition countries focusing on six main themes. Though it can be argued that the transition countries started from more or less the same point when they embarked on their transitional path, in this paper, we indicate a number of the differences in initial conditions which further influenced SME development. By surveying the existing literature on SME development, this paper illustrates that as the transition process progresses, entrepreneurship development in transition countries is a story of increasing divergence. The transitional context provides unique opportunities for entrepreneurship activities to develop. However, at the same time this environment presents unique challenges for entrepreneurial development especially knowledge-based entrepreneurship as the free-market system matures within a context with low levels of SMEs and inherited negative views towards entrepreneurship

Significant aspects of managing personnel risk in the SME sector

Personnel risk significantly affects the operation of small and medium-sized enterprises. The aim of the paper is to define and present significant factors affecting the perception of personnel risk in the SME segment, and compare the current status and development in the Czech Republic and Slovakia. The empirical research was conducted in 2020 in the SME segment in the Czech Republic and Slovakia via an online questionnaire, using a sample of 822 respondents. The obtained data were evaluated using the Chi square and Z score. Personnel risk significantly affects the SME segment and its business activities. This risk is perceived as the most significant business risk in both countries, even though its intensity is moderate and does not have a heavy negative impact on SMEs' activities. The overall evaluation of personnel risk's impact on SMEs' activities is similar in both countries. The evaluation of employee turnover was relatively positive, as a considerable part of entrepreneurs stated that turnover is low and does not have a negative impact on their business. The evaluation of turnover was similar in both countries. Based on entrepreneurs' statements, there are certain gaps in employee error rate, which affects their business. Slovak entrepreneurs provided a worse evaluation of the quality of their employees than the Czech entrepreneurs. Entrepreneurs in both countries are dissatisfied with the way their employees strive to improve their performance or how they compete among each other. The comparison based on business size and age did not yield significant differences, nor did it provide a clear trend despite the general belief presented in literature that larger enterprises have a better access to important fields of business management

The electronics industry in central and eastern Europe: an emerging production location in the alignment of networks perspective

This paper analyses the emergence of central Europe as a new location for the production of electronics. The main factors that drive integration in the region into global production networks are also analysed, as well as prospects for upgrading the industry by using network alignment perspectives. Foreign investment is the primary vehicle of integration of CEE electronics firms into global production networks, and Hungary has moved furthest along this path, positioning itself as a major low-cost supply base in the region. Czech and Polish electronics industries are connected, in smaller, but increasing, degrees to international electronics production networks. Networks that are being built in CEE in electronics are usually confined to subsidiaries with still limited local subcontracting; they are export-oriented and are expanding. Local subsidiaries have mastered production capabilities and several subsidiaries in Hungary are European mandate suppliers in their respective lines of business. EU demand is the main pull factor, which gives cohesion to the actions of MNCs as well as to the action of local and national governments in CEE. The layer of local firms is still very weak with very limited capabilities in core technologies. This is the key weakness which prevents further alignment of networks in CEE electronics. Local governments play an important role in working jointly with foreign investors in establishing industrial parks and new capacities

Cross-border cooperation – the barriers analysis and the recommendations

La cuestión se refiere a las barreras que limitan el proceso de cooperación transfronteriza (CBC) en las eurorregiones. Se han identificado dos tipos de barreras que provienen del entorno transfronterizo y las circunstancias específicas de la CBC en las eurorregiones. Estas barreras se identifican y analizan con referencia a los objetivos estratégicos de la Eurorregión de Cieszyn Silesia, situada en la frontera polaco-checa. El objetivo de este documento es señalar las posibles formas de limitar las principales barreras que obstaculizan el logro de los objetivos de la eurorregión, gracias al compromiso de los tres principales interesados en la cooperación transfronteriza. Los resultados de la investigación se analizan en comparación con otras investigaciones relativas a la Eurorregión EUROACE, situada entre los territorios portugués y español. La investigación muestra que en ambas Eurorregiones se identifican barreras "externas" similares al desarrollo de la cooperación transfronteriza, que son características de las regiones periféricas, distantes de los centros de decisión nacionales y regionales. Al mismo tiempo, el estudio identificó barreras 'internas' al desarrollo de la cooperación transfronteriza, que afectan más fuertemente a los objetivos sociales de la cooperación y que pueden reducirse a nivel local mediante una hábil política de los gobiernos locales que debería crear el desarrollo de las eurorregiones y movilizar a las organizaciones no gubernamentales y a los empresarios para la cooperación.The issue concerns the barriers limiting the process of cross-border cooperation (CBC) in Euroregions. There are two identified kinds of barriers coming out from the cross-border environment and the specific CBC circumstances in Euroregions. These barriers are identified and analysed with reference to the strategic goals of Cieszyn Silesia Euroregion, located on the Polish-Czech border. The goal of this paper is to point out the possible ways to limit the key barriers hindering the achievement of Euroregion goals, thanks to the commitment of the three key CBC stakeholders. The results of the research are analysed in comparison with other research concerning EUROACE Euroregion, located between the Portuguese and Spanish territories. Research shows that in both Euroregions similar ‘external’ barriers to the development of cross-border cooperation are identified, which are characteristics of peripheral regions, distant from national and regional decision centres. At the same time, the study identified ‘internal’ barriers to the development of cross-border cooperation, which most strongly affect the social objectives of cooperation and can be reduced at the local level by a skilful policy of local governments that should create the development of Euroregions and mobilize non-governmental organizations and entrepreneurs for cooperation.peerReviewe

Measuring Business Ownership Across Countries and Over Time: Extending the COMPENDIA Data Base

Since several years EIM Business and Policy Research maintains a data base on business ownership rates across OECD countries, called COMPENDIA (COMParative ENtrepreneurship Data for International Analysis). EIM harmonizes raw numbers of business owners (self-employed), as published in the OECD Labour Force Statistics, towards a uniform definition. We define the business ownership rate as the number of owner-managers of unincorporated and incorporated businesses, as a fraction of the total labour force. Until recently, data in COMPENDIA were published for a group of 23 OECD countries, starting from 1972 onwards. However, in the most recent version of the data base time series for seven additional countries have been introduced for the first time, so that the COMPENDIA data base now covers 30 OECD countries. The current paper makes four contributions. First, we provide an update of the methodology used to harmonize business ownership rates across countries. In doing so, as a second contribution, we provide two extended country cases (Poland and the United States) which illustrate the many methodological pitfalls that have to be dealt with when measuring the number of business owners. Third, we present business ownership time series for 30 OECD countries including the new countries in our data base: Czech Republic, Hungary, Korea, Mexico, Poland, Slovak Republic, and Turkey. Fourth and finally, we pay considerable attention to the sizable differences in the level and development of business ownership since 1989 in four Central and East European transition economies in our data base: Czech Republic, Hungary, Poland, and Slovak Republic. �

Kazakhstan's Diversification from the Natural Resources Sector: Strategic and Economic Opportunities

This book explores opportunities for diversifying modern Kazakhstan's economy, which is still heavily dependent on its natural resources, as well as looking at economic opportunities for the whole Central Asian region arising from the Chinese government's Belt and Road Initiative (BRI). The book is comprised of four parts. Part 1 explores the first main theme of the book: development of the economy based on the resource sector with the example of Kazakhstan. Part 2 examines opportunities for diversification arising from BRI: a rise of transport and communication industries alongside the new Belt and Road economic route. Part 3 explores the view from China on the perspectives of regional development, not least the economic reasons for the launch of this programme, investments and planned effects. Part 4 discusses other internal sources for diversification of the economy in Kazakhstan based on development of local industry in the oil and gas sector, small- and medium-sized enterprises and tertiary sector of the economy. This book will be of value for students, academics, policy-makers, and practitioners focused on economic development and business in the Central Asian region, as well as those who are working on the design of instruments for economic development in their own countries

IFRS Adoption in the E.U., accounting harmonization and market efficiency: a review

As of 1st January 2005 all European listed companies had to adopt IAS/IFRS in order to prepare their consolidated financial statements. Five years later, the paper analyses the advancements in the accounting harmonisation process within European countries and between E.U. and the rest of the world, overviewing the first available evidences on financial market efficiency. The paper has three main objectives. It aims at providing a state-of-the-art of the process of IFRS adoption in the E.U. pointing out the positive observable effects and the main drawbacks and at reviewing the existent literature developed during the last years on this subject. Finally, it aims at identifying some interesting and so far not explored research areas. JEL Classification: M41International Financial Accounting Standards; European Union;International accounting Harmonization; Convergence

Increasing the business potential of companies by ensuring continuity of the development of their information systems by current information technologies

This paper deals with applications of information and communication technologies in the management of companies and institutions. It also focuses on Competitive Intelligence and Business Intelligence and the description of their position in business management. The paper presents current trends in information and communication technologies with emphasis on the use of virtualization and Cloud Computing technologies. The author discusses the importance of Cloud Computing to maintain the continuity of information system of enterprises with low financial impact, thereby increasing its stability. Theoretical framework and literature support the assumption that information and communication technologies are essential for the competitiveness of small and mediumsized enterprises. Discussed are factors that affect management and use of information and communication technologies in small and medium-sized enterprises, in particular the use of cloud computing. Based on the results obtained from a questionnaire survey carried out in the Czech Republic, the author proposed methodological recommendations to facilitate the transition to cloud computing

E-commerce adoption by European firms: a cross-country multilevel analysis

E-commerce has been recognized as a new form of commerce and a fresh way to identify, target, and retain customers. However, firms are often uncertain about investing in the online channel as there is no guarantee this will result in consumers engaging in online transactions. The studies on e-commerce adoption usually distinguish the following three dimensions: environmental, technological, and organizational (Rodríguez-Ardura & Meseguer-Artola, 2010; Zhu, Kraemer, & Xu, 2003). There are few purely virtual firms, and the traditional channel and multichannels continue to be the predominant types of retail channels used by firms (Zhu, Kraemer, & Xu, 2006; Li, Troutt, Brandyberry, & Wang, 2011). This is due to the many obstacles faced by firms adopting e-commerce; more specifically, they must overcome important technical, cognitive, socio-political, economic, legal, managerial, financial, and cultural challenges (Zhu, Kraemer, & Xu, 2003; Molla & Licker, 2005; Kshetri, 2007). Given the heterogeneity of contexts, the factors constraining the adoption of ecommerce are not the same across firms and countries (digital divide). In light of this, our focus will be on firms that have not yet taken the decision to adopt e-commerce due to a set of restraints, and on analyzing the differences within- and between-countries. The research question to be answered is: What are the inhibitors of e-commerce adoption in each EU country? An analysis is made of the overall attitudes towards e-commerce adoption in European firms, linking specific deterrents of e-commerce adoption (e.g., higher delivery costs or the nature of business) and the following retailer characteristics: size, type of product, retail channels, and respondent’s position in the firm and engagement in distance selling. To explore the overall attitude towards e-commerce adoption, we propose a conceptual model that combines a two-level structure: the individual level, which models the attitudes towards barriers that prevent adoption of the online channel within each country; and the country level that highlights the similarities (and differences) between EU countries. The statistical model combines factorial and regression components. This model was estimated by the maximum likelihood method using the MPlus 6.12. CFI is 0.989, TLI is 0.984, and RMSEA is 0.034; therefore, model fit is excellent (Hu & Bentler, 1999). Results show that aspects such as firm size and the job position of respondents do not influence the attitudes toward e-commerce adoption. Three covariates point to theiv aversion to e-commerce: telesales/call center retailing, direct retail channels, and selling non-food products.A adoção do comércio eletrónico tem vindo a ser reconhecida como uma nova forma de retalho, bem como uma forma inovadora de identificar, adquirir e reter clientes. As empresas têm tendência a enfrentar a incerteza no momento de decidir se irão ou não investir num canal na Internet, dado que são necessários recursos internos e a oferta de um serviço que faça os clientes quererem efetuar novas compras pela Internet. Os estudos nesta área focam-se principalmente em três dimensões: organizacional, tecnológica e contextual (Rodríguez-Ardura & Meseguer-Artola, 2010; Zhu, Kraemer, & Xu, 2003). São poucas as firmas que usam apenas canais virtuais para vender produtos/serviços/informações, sendo o retalho tradicional e o multicanal os canais mais utilizados pelos retalhistas (Zhu, Kraemer, & Xu, 2006; Li, Troutt, Brandyberry, & Wang, 2011). Em consequência, a adoção de comércio eletrónico enfrenta vários obstáculos, nomeadamente técnicos, cognitivos, sociopolíticos, económicos, legais, financiais, culturais e organizacionais (Zhu, Kraemer, & Xu, 2003; Molla & Licker, 2005; Kshetri, 2007). Tendo em consideração a heterogeneidade contextual, torna-se evidente que os fatores que dificultam a adoção do comércio eletrónico não são os mesmos em diferentes empresas ou países, o que origina um fosso digital a nível global. Assim sendo, o nosso foco ao longo desta dissertação será em empresas que ainda não adotaram o comércio eletrónico, considerando os diferentes inibidores no momento da tomada de decisão pelos gestores, bem como as diferenças que existem em cada países e entre países da União Europeia. A questão principal a ser respondida será: Quais os fatores que inibem a adoção do comércio eletrónico em cada país europeu? Considerando esta questão basilar, irão ser analisadas as atitudes das empresas europeias perante a adoção de comércio eletrónico, cruzando impedimentos específicos à adoção de e-comércio (como por exemplo, os elevados custos associados à entrega ou a natureza do negócio) com características específicas dos retalhistas (covariáveis): dimensão da empresa, tipo de produto transacionado, os canais de venda, a posição dos entrevistados na empresa, bem como se estão já ou não a exportar produtos ou serviços. Para explorar estas atitudes das empresas europeias perante a adoção de comércio eletrónico, foi proposto um modelo conceptual que combina uma estrutura em dois níveis: a nível individual, o modelo analisa as atitudes em cada país relacionada com as barreiras associadas à adoção do comércio eletrónico; e ao nível do país, onde são identificadas as diferenças e as semelhanças entre os paísesii europeus. O modelo estatístico combina uma componente fatorial e uma componente de regressão. Para além disso, foi estimado usando o método de máxima verosimilhança, recorrendo ao software MPlus 6.12. Como o CFI é 0,989, o TLI é 0,984 e o RMSEA é 0,034, podemos concluir que o ajuste do modelo é excelente (Hu & Bentler, 1999). Os resultados revelam que aspetos como a dimensão da empresa e a posição dos entrevistados não influenciam as atitudes em relação à adoção do comércio eletrónico. Contudo, são três as covariáveis identificadas como tendo aversão à adoção do ecomércio: as empresas que usam as televendas, as empresas que usam o call center como canal de vendas e os retalhistas que optam pelas vendas diretas (comércio tradicional), bem como as que vendem produtos não alimentares

Banking in transition countries

Modern banking institutions were virtually non-existent in the planned economies of central Europe and the former Soviet Union. In the early transition period, banking sectors began to develop during several years of macroeconomic decline and turbulence accompanied by repeated bank crises. However, governments in many transition countries learned from these tumultuous experiences and eventually dealt successfully with the accumulated bad loans and lack of strong bank regulation. In addition, rapid progress in bank privatization and consolidation took place in the late 1990s and early 2000s, usually with the participation of foreign banks. By 2005, the banking sectors in many transition countries had developed sufficiently to provide a wide range of services with solid bank performance. Recently, banks have switched their focus from lending to enterprises in a somewhat underdeveloped institutional environment to new collateralized lending to households, which accounts for much of the recent growth of credit in many transition countries.transition banking; bank privatization; foreign banks; bank regulation; credit growth