Identification of the risk factors of the internationalitaion process of SMEs operating in the textile industry

Small and medium sized companies (SMEs) are very important subjects playing the dominant role in most of economics – they are considered as a factor of social stability and of the economic development in the Czech Republic as well as in the whole EU. SMEs share of employment since 2002 is more than 61%, GNP share is about 35% and their import share is continuously increasing, from 2004 it is more than 50%. The paper deals with SMEs operating in the textile industry and is focused on the internationalization process of SMEs. In recent years the Czech companies have to face significant competition coming from Asian countries and therefore the big rivalry in the domestic market leads Czech companies to efforts to succeed in foreign markets. All companies entering foreign market have to face many risks, for small and medium-sized enterprises is even more difficult to deal with these risks because they often have less experience and finance than large companies. Internationalization of the firms is generally defined as the involvement in the international environment. The process of internationalization can be also defined as “the process of increasing involves in international operations” (Welch, Luostarinen; 1988). The process essentially involves the adaption of firm operations like strategy, structure, resources etc., to perfectly fit the international environments. Furthermore, the degree of internationalization can be measured as foreign sales relative to total sales. (Welch, Luostarinen; 1988).The internationalization process is defined in the literature in many ways; there is a countless variety of different approaches and models of internationalization process of companies. Like all processes in the firm also the international process is accompanied by risks. The main aim of this paper is to identify the key risk factors of this process - knowing the risk factors it is possible to propose to SMEs the way how to reduce or eliminate possible risks in their activities on foreign markets. To reveal the key risk there was conducted the survey in the last half of 2011 and in 2012 among 803 Czech SMEs operating in the textile industry, 161 responses were processed and evaluated. The obtained data were analyzed by statistical method. Potential risks of entry into foreign market were rated according to their impact on businesses. According to processed responses the greatest influences on the process of successful internationalization have a shortage of capital, lack of the information on foreign markets and high transportation costs. Other factors that may impede the successful internationalization are language barriers, inexperience of management with the internationalization and high prices of products. Furthermore, a survey has investigated what factors cause that some SMEs are able to enter the foreign market, but after some time they are not successful there. It was found that the main factors of failure of SMEs are the unreliable and incompetent management, lack of promotion of the products and lack of contacts abroad. Based on these findings there some proposals were suggested to eliminate or reduce the impact of these risk factors

Method of evaluating the success of the dairy czech small and medium-sized enterprises

The paper is focused on the dra of the method for quantifi cation of the factors, which determine the success of the SMEs in foreign markets. In the proposed method the ultidimensional assessment of indicators of success of SMEs in foreign markets are used, ie. not only the proportion of sales from exports is observed, but also the profi tability of international activities in an absolute and in a relative rate. Other indicators of success are the satisfaction of the company management with international activities and the success of achieving defi ned targets for business activities in foreign markets. Evaluation is made up of both the objective and the subjective indicators of success. Among the objective indicators of success is included the intensity of international activities of SMEs, which is detected as the sum of revenues generated from international activities in relation to total sales company, the profi tability of international activities, (ie. whether the foreign activities are profi table or not), and the relative profi tability of international activities, where it is ascertained whether the foreign activities generate higher profi t than the activities at the domestic market. The next subjective indicator of success is the success of objectives – it was found how many objectives related to operations in foreign markets has been achieved. Another indicator is the subjective satisfaction of the company management with existing activities on foreign markets. Overall performance on foreign markets of the company is quantifi ed using an assessment of objective and subjective indicators of success. Using the defi ned evaluation it will be possible to determine which of the SMEs are more and which are less successful in foreign markets. Finally, this evaluation model is used for the research aimed at identifying characteristics aff ecting the success of dairy SMEs in the foreign markets

Method of evaluating the success of the dairy czech small and medium-sized enterprises

The paper is focused on the dra of the method for quantifi cation of the factors, which determine the success of the SMEs in foreign markets. In the proposed method the ultidimensional assessment of indicators of success of SMEs in foreign markets are used, ie. not only the proportion of sales from exports is observed, but also the profi tability of international activities in an absolute and in a relative rate. Other indicators of success are the satisfaction of the company management with international activities and the success of achieving defi ned targets for business activities in foreign markets. Evaluation is made up of both the objective and the subjective indicators of success. Among the objective indicators of success is included the intensity of international activities of SMEs, which is detected as the sum of revenues generated from international activities in relation to total sales company, the profi tability of international activities, (ie. whether the foreign activities are profi table or not), and the relative profi tability of international activities, where it is ascertained whether the foreign activities generate higher profi t than the activities at the domestic market. The next subjective indicator of success is the success of objectives – it was found how many objectives related to operations in foreign markets has been achieved. Another indicator is the subjective satisfaction of the company management with existing activities on foreign markets. Overall performance on foreign markets of the company is quantifi ed using an assessment of objective and subjective indicators of success. Using the defi ned evaluation it will be possible to determine which of the SMEs are more and which are less successful in foreign markets. Finally, this evaluation model is used for the research aimed at identifying characteristics aff ecting the success of dairy SMEs in the foreign markets

The internalization of SMEs operating in the engineering industry

The importance of small and medium enterprises (SMEs) in the national economies of EU countries has been always growing. For these reasons, the increasing attention is paid to small and mediumsized enterprises also in the Czech economy. The paper is focused on the globalization of small and medium enterprises, in particular, identifying the key success factors of small and medium-sized businesses that operate in the engineering industry. For the purpose of fulfi lling the objective of the article, the level of success of SMEs in foreign markets is established with the aggregate indicator of success. Subsequently the results of the primary research among the Czech engineering companies are presented, based on this research the factors aff ecting the success of these entities of engineering industry in foreign markets are defi ned

SUCCESS EVALUATION OF SMALL AND MEDIUM-SIZED ENTERPRISES IN TERMS OF THEIR PARTICIPATION IN THE INTERNATIONALIZATION PROCESS

In context of discussionsabout the Czech foreign trade development, questions of the Czech enterprises’ability to participate in the internationalization processare often considered. The main aim of this article is to present various points of view on the globalization and enterprise internationalization processwith a special accent on the analysis of the specifics in the internationalization process of small- and medium-sized enterprises (SMEs). Those enterprises represent a significant part of the Czech economy because they considerably contribute to the creation of vacancies and GDP; they are a source of innovation and technological progress and the factors of their successful functioning in foreign trades differ from the large-sized enterprises.For this reason, SMEshave been more frequently analysed in an effort to identify key factors, which involvetheir ability to succeed in international activities. Those factors could positively influence other SMEs in their plans to participate in the foreign trade. However, not all the enterprises have equal conditions for entering the foreign marketfield.In some business spheres, the export of SMEs is supported, which is considerably helpful, mainly in case of enterprises with insufficient funds. Some of the other spheresfacilitate access to the foreign market because of their sort ofproduction. Besides analysing the internationalization process of SMEs, this article is also focused on identification of both key factors of success and risk factors of the process.Determinants of SMEs success in the foreign market were examined using several extensive researches among Czech small and medium-sized enterprises of various business spheres. Results of the research have produced interesting information. It was discovered that all SMEs, although they operate in different business spheres, share similar problems concerning the internationalization process. Key factors, which determine success of Czech small and medium-sized enterprises in the internationalization process, are analogous in spite of diverse business spheres, but nevertheless every particular branch has a strong effect on an opportunity and willingness of SMEs to participate in the internationalization process

The role of small and medium-sized enterprises in the development of rural areas

Apart from the indisputable importance of SMEs to the national economy, they also provide social and economic benefits for regions they operate in. In this context, the rural areas seem to be interesting because currently there can be seen a reappraisal and emphasizing of their importance. Between 2015 and 2016 there were carried out surveys in two different regions (Hodonin and Holešov) in order to define the role of SMEs in rural areas. The aim of these surveys was to determine how the particular players of the regional development subjectively perceive the role of SMEs in rural areas, particularly how is the role subjectively perceived by SMEs themselves and also by local representatives in the given regions and how SMEs perceive doing business in such regions. The analysis of survey results together with the analysis of secondary data on the important characteristics of these two regions provided the basis for comparison of subjective perception of SMEs; economic and social benefits in these two different regions. According to our findings the role of SMEs in rural areas in the Czech Republic is determined by the creation of competitive environment, the deepening of ties between apprentices and practice, the use of local resources, the increase in rural area attractiveness, the financial benefits for municipalities, the creation of vacancies, the sustaining of positive relationships within the local community and the development of infrastructure.O

The internalization of small and medium-sized enterprises in the viticulture

Small and medium enterprises (SMEs) are an important part of the Czech economy, they significantly contribute to job and GDP creation, they are a source of innovation and technological progress. The paper is focused on the internationalization of SMEs, specifically in the wine, which is a specific sector, which is closely linked to specific area and is a significant subject of natural and climatic conditions. The authors focused on the specification of the most important aspects of the internationalization of Czech wine-growing small and medium enterprises based on research via interviewing 450 SMEs wineries,they identified the key success factors in the process of internationalization of SMEs in the wine business