Ludmila Kozubikova,

Tomas Bata University in Zlín,

Zlín, Czech Republic,

E-mail: kozubikova@fame.utb.cz

The impact of political factors‘ perception on suitability of international business environment: The case of startups

Anna Kotaskova,

Paneuropean University Bratislava,

Bratislava, Slovakia,

E-mail: anna.kotaskova@gmail.com

Jan Dvorsky,

Tomas Bata University in Zlín,

Zlín, Czech Republic,

E-mail: jan.dvorsky5@gmail.com

Aleksandr Kljucnikov,

University of Entrepreneurship and Law,

Prague, Czech Republic,

E-mail: kliuchnikov@gmail.com

Abstract. Favorable business environment including political, technological, economic, social and other determinants is one of the crucial factors influencing the decision to start a business. The aim of this paper is to define and quantify significant political factors which determine the perception of the quality of business environment (QBE) of small and medium-sized enterprises for starting a new business in Czech Republic and Slovakia. Data of an extensive research conducted at Tomas Bata University in Zlín in 2018 was processed by means of regression analysis. The results show that QBE in both countries is mostly affected by state regulation and state support of business activities, followed by legal environment. The factor supposed to be the third one differed in each country. While QBE is also determined by the quality of education in Czech Republic, this factor is not statistically significant in Slovakia, and the state bureaucracy is. Therefore, governments of both countries should continue facilitating start-ups’ development by reducing and eliminating administrative barriers, improving access to finance, and by adapting educational programs involving entrepreneurial education at different educational levels.

Received: October, 2018

1st Revision: January, 2018

Accepted: February, 2019

DOI: 10.14254/2071-789X.2019/12-1/3

JEL Classification: H70, L26, M13, M29

Keywords: Business environment, Educational system, Czech Republic, Legal factors, Slovak Republic, Small and medium-sized enterprises, State regulation and bureaucracy