THE BUSINESS ENVIRONMENT OF SMALL AND MEDIUM-SIZED ENTERPRISES IN SELECTED REGIONS OF THE CZECH REPUBLIC AND SLOVAKIA

sized enterprises (SMEs) is a current area of theoretical research and practical applications in the European Union. The fi nancial crisis and the gradual recovery of the economies in the European Economic Area brought about a deterioration of the business environment. It can be assumed that business risks have increased due to turbulence in the economic system. SMEs are currently operating in a more demanding economic environment, and many of them are struggling to survive. The fundamental prerequisite for successful management and the development of all businesses is a favourable business environment in which the state supports and protects economic competition, creates clear and stable rules, and effectively ensures compliance by all market participants while minimizing administrative barriers towards entrepreneurs. A positive perception of the business situation by society might mean a greater interest in starting a business, which can further lead to a higher rate of GDP and higher employment rates. Generally, it is the prevailing opinion that countries with better conditions for doing business achieve also a higher standard of living. In this article, the current situation of the business environment of SMEs in selected regions of the Czech Republic and Slovakia has been examined. Our research was dealing with socio-economic parameters of the business environment such as motivational factors, status in society, level of corruption, business risks, approach to debt fi nance, ability to manage fi nancial risks and business optimism.