Domańska, Ada; Zajkowski, Robe
A icle
In luence o s a e pa icipa ion on business condi ions
and en ep eneu ship in he EU coun ies o he o me
eas e n bloc
e-Finanse: Financial In e ne Qua e ly
P o ided in Coope a ion wi h:
Uni e si y o In o ma ion Technology and Managemen , Rzeszów
Sugges ed Ci a ion: Domańska, Ada; Zajkowski, Robe (2018) : In luence o s a e pa icipa ion on
business condi ions and en ep eneu ship in he EU coun ies o he o me eas e n bloc, e-Finanse:
Financial In e ne Qua e ly, ISSN 1734-039X, Sciendo, Wa saw, Vol. 14, Iss. 2, pp. 9-17,
h ps://doi.o g/10.2478/ iq -2018-0008
This Ve sion is a ailable a :
h ps://hdl.handle.ne /10419/197407
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Uni e si y o In o ma ion Technology and Managemen in Rzeszów 9
Ada Domańska1, Robe Zajkowski2
Abs ac  Thepu poseo  hispape is oshow heex en  owhichs a ein e e encein heeconomya ec s
hecondi ionso  unc ioning o smallandmedium-sizeden e p isesineconomieso  he o me 
eas e nblocwhichha eal eadygone h ough heEUaccessionp ocess.Theda aonSMEs’si u-
a ionwe e aken om heFac Shee so  heEUp og amSmallBusinessAc .Due o he ac  ha 
he a iablesp oposed odesc ibe hebusinessen i onmen di e signi ican lyi wasnecessa y
os anda dize hem.Theze ouni a iza ionme hodwasapplied o ankcoun iesp ope ly.Special
a en ionin hispape isde o ed oPolandand hesi ua iono businessesope a ingin hiscoun-
y.The esea chhasiden i iedsomea eas equi ingu gen changes.I isc ucial oimp o e he
si ua ionso ha companiescanplayap ope  olein heeconomy.Acoun ywhichcouldbean
exampleo goodsolu ions ha suppo businessde elopmen isalsodesc ibed.
1 Ma iaCu ie-SkłodowskaUni e si yinLublin,Facul yo Economics,Depa men o Banking,e-mail:[email p o ec ed],ORCID:0000-0002-
8239-4319.
2 Ma iaCu ie-SkłodowskaUni e si yinLublin,Facul yo Economics,Depa men o Banking,e-mail: obe .zajk[email p o ec ed],ORCID:0000-
0002-0021-7977.
INFLUENCE OF STATE PARTICIPATION ON BUSINESS
CONDITIONS AND ENTREPRENEURSHIP IN THE EU
COUNTRIES OF THE FORMER EASTERN BLOC
Financial In e ne Qua e ly „e-Finanse” 2018, ol. 14/ no. 2, s. 9-17
DOI: 10.2478/ iq -2018-0008
JEL classi ica ion: L26, O57, P20
Keywo ds: SMEs, Small Business Ac , o mem Eas e n Bloc
Recei ed:20.11.2017 Accep ed:26.03.2018
www.e- inanse.com
Uni e si y o In o ma ion Technology and Managemen in Rzeszów
10
„e-Finanse” 2018, ol. 14 / no. 2
Ada Domańska, Robe Zajkowski
In luence o s a e pa icipa ion on business condi ions and en ep eneu ship in he EU
coun ies o he o me Eas e n bloc
In oduc ion
The pu pose o his pape is o show he ex en
o which s a e in e e ence in he economy a ec s he
condi ions o  unc ioning o  small and medium-sized
en e p ises(SMEs)ope a ingin he o me eas e nbloc
coun ies,whichnowbelong o heEu opeanUnion.The
SMEsec o playsaspecial oleinde elopmen o indi idual
economies. SMEs a e conside ed o be s imulan s o a
coun y’seconomicsi ua ion.Thei ope a ionisasigno 
ai compe i ionand e lec sasocie y’sen ep eneu ship
(Igna iuk,2011).
The companies ha  ha e been p epa ed o ake
oppo uni ies o e ed by globaliza ion and accele a ion
o  echnological change a e signi ican  elemen s o 
u he  imp o emen  o  compe i i eness and dynamic
de elopmen o  heEUeconomy,allowingc ea iono new
jobsandensu ingahighe le elo socialcohesion.The
abili y oexploi  hepo en ialo smallandmedium-sized
en e p ises will be decisi e o  he u u e p ospe i y o 
heEu opeanUnion(Eu opeanCommission[EC],2008a).
Becauseo  heimpo an  oleo  heSMEsec o  o 
he u he de elopmen o  heEU,i wasposi ionedin he
cen e o  heLisbonS a egy o g ow handjobs h ough
heuseo apa ne shipapp oach(Eu opeanCommission,
2005). Di e si y o  he en i onmen  in which indi idual
economic en i ies ope a e makes i  e y impo an  o
c ea e he igh  p og am o suppo  SMEs - a p og am
whichwould akein oaccoun  hedi e si y.Thus,inJune
2008 he Eu opean Commission p esen ed an ini ia i e
whichwould u he s eng hensus ainableg ow hand
compe i i eness o  SMEs, called he Small Business Ac 
(SBA) o Eu ope(Eu opeanCommission,2008b).
The undamen al assump ion o  he SBA was ha 
mos  impo an  o achie ing success is o change he
pe cep iono en ep eneu sinsocie y.Posi i epe cep ion
o aspec sconce ning heSMEs unc ioning,in he o mo 
inc easedemploymen andeconomicp ospe i y,should
encou agepeople os a abusiness.I isapi o alpoin ,
c ucial o  c ea ion o  a business- iendly en i onmen ,
which is why he cul u e o  en ep eneu ship and he
associa edwillingness o ake iskshouldbesuppo edby
poli icalleade s, hemedia,and heau ho i ies.
Thep og amaims oc ea eanewpolicy amewo k,
consolida ingal eadyope a ingsuppo ins umen s o 
businesses. I s implemen a ion is o ake place h ough
he poli ical pa ne ship be ween he EU and Membe 
S a es ha  espec s he p inciples o  subsidia i y and
p opo ionali y. A comp ehensi e policy amewo k
is based on 10 p inciples employed o guide he
de elopmen  and implemen a ion o  policies a  he EU
andMembe S a esle el.Thesep inciplesa eessen ial o
con ibu eadded alue,ensu eequalcondi ions o SMEs
and imp o e he legal and adminis a i e en i onmen 
h oughou  heEu opeanUnion(Eu opeanCommission,
2008b).
Li e a u e e iew
Resea ch shows ha  due o he ac  ha  o me 
Eas e bloceconomieswe eope a ingunde  heideology
o communismandla e wen  h ough heEUaccession
p ocess,anumbe o simila i iesmaybeno icedbe ween
hem(Cza necka,2007).
Fo  his eason,many esea che sb ingup hesubjec 
o  unc ioning condi ions o  en ep eneu ship in hese
coun ies.The inalshapeo  hebusinessen i onmen in
eachcoun yis ied ohis o icalandcul u alissues.This
si ua ionled ode elopmen o solu ionswhichappea ed
no  o be e icien  enough in pos -socialis  coun ies
(Es in & Mickiewicz, 2012). The s ong a achmen  o 
pos -socialis  coun ies o he pas  (pa h dependency)
is e e ed o in Douglass No h’s heo y (No h, 1990).
O he  s udies con i m ha  his o ical bu den in hese
coun ies enhances a endency owa ds co up ion,
which is in ensi ied by weak ins i u ions, bu eauc acy
andine icien law(Tonoyan,e .al.,2010).Fu he mo e,
he eisalowe accep ance o en ep eneu ialac i i ies
(Manolo a,Eunni&Gyoshe ,2008).
Mo eo e , i  is poin ed ou  in li e a u e on he
issue o en ep eneu ship in coun ies o he o me
Eas e n bloc ha  he ansi ion economies ha e lowe 
a es o  en ep eneu ship han a e obse ed in o he 
economies (Es in & Mickiewicz, 2010). Some o he 
s udies also con i m his s a e o  a ai s (McMiIllan &
Wood u ,2002;Es in,Meye &By chko a,2006;Aidis
&Mickiewicz,2006).The ea ealsosigni ican di e ences
ha  occu  among he coun ies. The de elopmen  o 
en ep eneu ship in a gi en coun y co esponds o
i s le el o  economic de elopmen . Inno a ion-d i en
economiesha ehighe ins i u ionalandindi idualle els
o de elopmen  hansimila lyde elopede iciency-d i en
economies (T umbull & Sze b, 2016). I  is impo an  o
ecognise he easons o  hisdi e en ia ion.
Ada Domańska, Robe Zajkowski
In luence o s a e pa icipa ion on business condi ions and en ep eneu ship in he EU
coun ies o he o me Eas e n bloc
www.e- inanse.com
Uni e si y o In o ma ion Technology and Managemen in Rzeszów 11
„e-Finanse” 2018, ol. 14 / no. 2
The li e a u e indica es ha  a la ge public sec o 
has a nega i e impac  on he unc ioning condi ions
o  en e p ises, bo h due o high axes and high s a e
spending (Hen ekson, 2005; Minni i, 2008, A onso, e .
al., 2005, Boix, 2001, Wa ne, 1997, Van Thiel & Leeuw,
2002). High public deb  can lead o limi a ion o  unds
a ailable op i a een i ies o  inancing hei spending,
i.e. he phenomenon o  “c owding ou ” (Ma kiewicz &
Miłaszewicz, 2006, Benedek, e . al., 2014, Zega owicz
& Wildowicz-Giegiel, 2017, Gaweł, 2004, Rogalska,
2012). On his basis, i  was decided o o mula e he
hypo hesis(H1), ha as a e’sconside ablepa icipa ion
in heeconomyhasanega i ee ec on he unc ioning
condi ionso en e p ises.Howe e ,i iswo hno ing ha 
simul aneouslywi hagene al“c owdingou ”e ec  he e
a esome con adic o y examples such as Ge manyand
No waywhe ewecanobse ehighin ol emen o  he
publicsec o in heeconomyanda ela i elylowle elo 
publicdeb .
On he o he  hand, business suppo  p og ams
ca ied ou  by he s a e ha e a signi ican  impac 
on imp o emen  o  he unc ioning condi ions and
de elopmen o en e p ises.Aposi i eimpac o public
p og ams on he le el o  employmen  was no ed in
Sweden(No man&Bage -Sjög en,2010).Theimpac o 
localini ia i es,launchedby heEn e p iseInsigh ,on he
newly o meden e p isesandsel -employmen  a eswas
examinedinG ea B i ainand u nedou  obeposi i e
(Bo ham,2012).Thesecondhypo hesis(H2)assumes ha 
businesssuppo p og amsca iedou by heS a eha e
aposi i ee ec on unc ioningcondi ionso en e p ises.
Me hodology
As a pa  o  he s udy an analysis was ca ied ou 
on small and medium-sized en e p ises in coun ies o 
he o me Eas e nblocwhicha enowmembe so  he
Eu opeanUnion. Relyingon he li e a u e,11coun ies
we e selec ed o  a de ailed analysis o  he unc ioning
condi ionso en e p ises:Bulga ia,C oa ia,CzechRepublic,
Es onia, Li huania, La ia, Poland, Romania, Slo akia,
Slo enia,andHunga y.Thecoun ieso  he o me Eas e n
blocalsoinclude hes a eso  he o me Yugosla ia.Wha 
ismo e,i shouldbe akenin oconside a ion ha Bal ic
Coun ies a e o me  So ie  epublics and addi ionally
e ysmallgeog aphicalen i ies.Due o hecul u aland
poli ical pas  hey ha e qui e di e en  backg ound and
posi ion hane.g.Poland,Hunga y,o  heCzechRepublic.
Hence some imes solu ions ha  a e wo kable in Bal ic
coun iescould ailino he economicen i onmen sand
canno beimplemen edino he economies.
The in o ma ion used in his a icle comes om
heFac Shee so indi idualcoun ieson hedeg eeo 
implemen a iono  heP og ammeo  heSmallBusiness
Ac in2015.Thead an ageso employing hissou cea e:
s a is ical c edibili y, comple eness o  con ained da a,
and high compa abili y. A signi ican  d awback, on he
o he  hand, a e eme ging delays in publishing pa s o 
in o ma ionbyce aincoun ieso  hei  o allack.
Asapa o  heSmallBusinessAc p og am,di e en 
a easconce ning he unc ioningo  smallandmedium-
sizeden e p isesa ep esen edinacco dancewi hi s10
p inciples.Theyinclude:
1) En ep eneu ship,
2) “Secondchance”,
3) “Thinksmall i s ”,
4) “Responsi eadminis a ion”,
5) S a eaidandpublicp ocu emen ,
6) Access o inance,
7) SingleMa ke ,
8) Skillsandinno a ion,
9) En i onmen ,
10) In e na ionalisa ion.
Because o  he la ge ex en  o  hese analyses,
aspec sp esen edin he a icle ocusonly on lexibili y
o adminis a ionanda ailabili yo  inancing o  SMEs.
Thesea easwe eselec edbecauseo  hei impo ance
o  unc ioningand o ma iono businessen i ies.
Due o he ac  ha  he a iables p oposed o
desc ibe he business en i onmen  di e  signi ican ly i 
wasnecessa y os anda dize hem.Theze ouni a iza ion
me hod was applied o ank coun ies. This me hod is
applicablewi hbo hquan i a i eandquali a i e a iables
andi ssimplici yleads oeasyin e p e a iono  esul s.
Mo eo e , hisme hod ul ils h eeimpo an c i e ia:
1) A e  no malisa ion leng hs o  in e als o 
a iabili y o all ea u esa e hesame.
2) Thelowe anduppe limi so in e also  a iabili y
o all ea u esa e hesame:[0,1].
3) Fea u es which ha e a ze o alue can be also
no malised(Kukuła,2012).
In he case o  boos e s ( hei  g ow h causes he
g ow hin hele elo analysedphenomena) hedis ance
indica o wasusedwhichdi idesindi idualcoun ies om
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Uni e si y o In o ma ion Technology and Managemen in Rzeszów
12
„e-Finanse” 2018, ol. 14 / no. 2
Ada Domańska, Robe Zajkowski
In luence o s a e pa icipa ion on business condi ions and en ep eneu ship in he EU
coun ies o he o me Eas e n bloc
hebes  esul (including heEUa e age).The ollowing
o mulao s anda diza ionisused henin he o m:
whe e:
xs,K– alue o  a no malized a iable x o  a gi en
coun y,
xK– alueo a aw a iablex o agi encoun y,
xKmin,xKmax– alueo indica o in heweakes and he
bes coun y o a a iablex.
In hecaseo inhibi o s(i i inc eases, he alueo 
analysedphenomenadec eases)opposi escaling o mula
o s anda dizingwasapplied.I  ook he o mo :
By using his ype o  s anda diza ion da a can be
compa edandagg ega ed.Inaddi ion, hedi e si ica ion
o scaling o boos e sandinhibi o sallowus ode e mine
he co ec  di ec ion and s eng h o  an occu ing
phenomenon.
Da aconce ning hepa icipa iono  hes a ein he
economyandbusinesssuppo p og amswe e aken om
he Global En ep eneu ship Moni o  (Kelley, Singe  &
He ing on,2016).Spea man’s ankco ela ioncoe icien 
which is a nonpa ame ic measu e o  ank co ela ion,
wasemployed o e i y hehypo heses(Liebe son,1964).
Resul s and discussion
The o ma ion o  he SME sec o  and i s impac 
on he unc ioning o  economies p oceed di e en ly in
indi idualcoun ies.I sspeci ici ydependson he le el
o de elopmen andsocio-poli icalsys emachie edbya
gi ens a e.E eni  he eisag ea simila i yo ope a ing
condi ions, he oleo smallandmedium-sizeden e p ises
willbedi e en ,and hedeg eeo de elopmen willbe
di e en ia ed(Igna iuk,2011).
When analyzing he p opo ion o  he numbe  o 
smallandmedium-sizeden e p isesin he o alnumbe 
o economicen i iesi mus bemadeclea  ha i s ooda 
asimila le elinselec edcoun ieso  heEu opeanUnion
( heyaccoun ed o mo e han99.5%o allcompaniesin
allanalyzedeconomies),so hein o ma ionwasno  he
subjec o deepe inqui y.Howe e ,p esen a iono da a
conce ningpa icipa iono peopleemployedin heSME
sec o  in ela ion o he o al numbe  o  employees in
en e p isesandsha ein headded alueo  he a ious
ypeso en i iesshouldbegi enmo ea en ion(Table1).
Smallandmedium-sizeden e p isesemployed om
67% o almos  79% o  all company employees in 2015,
so his sha ewassigni ican lydi e en in he coun ies
Table 1: The sha e o employed in he mic o, small and medium en e p ises in he o al numbe o employees in
en e p ises and sha e in he added alue o indi idual en i ies in selec ed EU coun ies
Coun y
Mic o Small Medium - sized SME
Employed Value
added Employed Value
added Employed Value
added Employed Value
added
Poland 35,80% 15,00% 13,90% 13,90% 18,20% 21,60% 67,80% 50,50%
Bulga ia 30,20% 19,30% 23,80% 20,60% 22,10% 22,10% 76,10% 62,00%
C oa ia 30,30% 18,70% 19,10% 17,50% 18,10% 19,00% 67,40% 55,20%
CzechRepublic 32,60% 19,20% 18,10% 15,30% 18,90% 21,00% 69,60% 55,50%
Es onia 30,90% 25,20% 24,20% 23,70% 23,00% 26,60% 78,00% 75,60%
Li huania 26,60% 15,40% 25,70% 24,10% 24,30% 29,20% 76,70% 68,50%
La ia 29,40% 18,60% 25,70% 23,40% 23,60% 26,90% 78,60% 68,80%
Romania 22,20% 13,50% 23,30% 16,10% 21,70% 20,00% 67,20% 49,60%
Slo akia 39,00% 27,10% 15,80% 17,70% 15,90% 16,50% 70,70% 61,20%
Slo enia 35,10% 21,70% 18,20% 19,10% 19,40% 22,30% 72,70% 63,10%
Hunga y 34,60% 18,70% 18,60% 16,10% 16,30% 18,80% 69,90% 53,60%
EU-28 29,20% 21,10% 20,40% 18,20% 17,30% 18,50% 66,90% 57,80%
Sou ce: Au ho ’s own elabo a ion based on 2015 SBA Fac Shee s

Ada Domańska, Robe Zajkowski
In luence o s a e pa icipa ion on business condi ions and en ep eneu ship in he EU
coun ies o he o me Eas e n bloc
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Uni e si y o In o ma ion Technology and Managemen in Rzeszów 13
„e-Finanse” 2018, ol. 14 / no. 2
analyzed. The smalles  pe cen age in his espec  was
no iced in Romania, Poland and C oa ia (abou  68%).
None heless,i shouldbemen ioned ha i didno di e 
signi ican ly om he EU a e age and e en su passed
i . The la ges  numbe  o  employed in he SME sec o 
wasinLa iaandalsowhe esuchcompaniesgene a ed
high(highe  han heEUa e age)pe cen ageo added
alue. This may be due o he almos  equal dispe sion
o  employmen  be ween he mic o, small and medium
en e p ises. The highes sha ein he added aluea ea,
howe e , belonged o SMEs ope a ing in Es onia (o e 
75%).Themainasse in a ou o suchahighle elseems
obeala gepe cen ageo companiesin he in o ma ion
echnology and communica ion sec o . Mo eo e , he
publicsec o o  hiscoun ycon ibu edsigni ican ly o
hede elopmen o inno a ion.
The lowes  added alue in ela ion o SMEs om
o he  coun ies was c ea ed by he sec o  in Romania.
The p oblems o which a en ion was d awn p ima ily
we e he lack o  a na ional ou ism s a egy as well as
unde de elopedanduncompe i i eho elin as uc u e.
Low pa icipa ion in his ega d was also p esen ed by
smallandmedium-sizeden e p isesope a inginPoland.
I  was p obably due o a high p opo ion o  people
employedin hesmalles en i ies-mic o(o e 35%),as
well as he sec o al s uc u e o  en e p ises i sel  (low
sha e o companies in he business equi ing p o essional
expe ise).
Subsequen ly, he impac  o  he SME sec o ,
exp essed h ough he pe cen age o  c ea ed jobs and
c ea edadded alue,on heeconomieso  heseEu opean
Unioncoun ies,didno di e signi ican ly om heEU
a e age.I shouldbeno ed,howe e , ha  hesi ua ion
inno he ncoun ies(Li huania,La iaandEs onia)was
muchbe e  hanino he coun ies.Theycan he e o e
be a ole model o  o he  economies, such as Poland,
whe e heSMEsec o ’ssha eingene a edadded alue
iss illqui elow.
Responsi eadminis a ionisanimpo an elemen 
e alua ed in he amewo k o  he Small Business Ac 
which de e mines he deg ee o  public sec o  capaci y
o espond o he needs o  SMEs (Table 2).  I  should
be s essed ha  in his ega d he no he n coun ies
like Li huania, La iaandEs oniape o m hebes .The
au ho i ies in hese coun ies y o c ea e a iendly
businessen i onmen .The e o e,di e en solu ionsa e
implemen edsuchas heLa iansinglecus ome se ice
ne wo k, which in eg a es se ices o  se en na ional
ins i u ions, conside ably educing he adminis a i e
bu den. I  may be acco dingly assumed ha  c ea ing
Table 2: Responsi e Adminis a ion in he selec ed EU coun ies (no malized da a, ma king: BG - Bulga ia, PL
- Poland, CZ - Czech Republic, EW - Es onia, H - Hunga y, HR - C oa ia, LV - La ia, LT - Li huania, R - Romania, SK -
Slo akia, SLO – Slo enia)
Aspec s PL BG CZ EW H HR LV LT RSK SLO UE
Time o s a a business 1,00 0,67 0,78 0,72 0,89 0,78 0,89 0,67 0,89 0,00 0,79 0,72
Cos o s a ing a business 0,70 0,90 0,00 0,54 0,40 0,04 0,91 0,66 0,75 0,40 1,00 0,22
Paid-in-minimum capi al 0,77 1,00 1,00 0,66 0,00 0,51 1,00 1,00 0,99 0,64 0,18 0,79
Time equi ed o ans e p ope y 0,71 0,93 0,80 0,86 0,87 0,35 0,86 1,00 0,85 0,87 0,00 0,78
Cos equi ed o ans e p ope y 0,94 0,42 0,20 0,92 0,00 0,00 0,60 0,84 0,70 1,00 0,60 0,11
Numbe o axpaymen s pe yea 0,14 0,50 1,00 0,93 0,64 0,07 0,93 0,64 0,43 0,00 0,64 0,59
Time i akes o pay axes 0,45 0,00 0,11 1,00 0,47 0,66 0,70 0,75 0,79 0,66 0,52 0,71
Cos o en o cing con ac s 0,67 0,45 0,00 0,55 0,89 0,95 0,49 0,46 0,20 0,15 1,00 0,56
Fas -changing legisla ion and policies
a e a p oblem o doing business 0,34 0,45 0,20 1,00 0,09 0,06 0,38 0,57 0,00 0,08 0,25 0,28
The complexi y o adminis a i e p oce-
du es is a p oblem o doing business 0,34 0,01 0,22 1,00 0,22 0,10 0,59 0,66 0,00 0,12 0,10 0,28
SMEs in e ac ing online wi h public
au ho i ies 0,74 0,53 0,83 0,89 0,55 0,81 0,80 1,00 0,00 0,80 0,81 0,66
Licenses and pe mi sys ems 0,55 0,08 1,00 0,78 0,53 0,00 0,60 0,27 0,15 0,44 0,01 0,34
Bu den o go e nmen egula ions 0,67 0,57 0,81 0,00 0,81 1,00 0,43 0,62 0,52 0,90 0,86 0,51
Sum 8,02 6,50 6,95 9,83 6,36 5,32 9,17 9,14 6,27 6,06 6,77 6,57
Sou ce: Au ho ’s own es ima ions based on 2015 SBA Fac Shee s
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Uni e si y o In o ma ion Technology and Managemen in Rzeszów
14
„e-Finanse” 2018, ol. 14 / no. 2
Ada Domańska, Robe Zajkowski
In luence o s a e pa icipa ion on business condi ions and en ep eneu ship in he EU
coun ies o he o me Eas e n bloc
a ou able condi ions o  he de elopmen  o  he SME
sec o by hepublicau ho i iesisconduci e osubsequen 
highadded aluegene a edby heseen i ies.
I isalsowo hpayinga en ion o he ac  ha  he
indica o scalcula ed o Polanda ehighaswell.Wecanbe
p oudo  hesho  imenecessa y o  hees ablishmen 
o anen e p iseandlowcos o suchap ocess.P oblems
occu in he axsys em,especiallyin hela genumbe and
imespen onmaking axpaymen s.En e p isesalsoha e
o acehigh ola ili yinlegalp o isionsands a epolicy,
aswellas hecomplexi yo adminis a i ep ocedu es.
The bigges  challenges, howe e , awai  he
companies ha ope a einC oa iaandSlo akia.Themos 
impo an issues he ea eaconside ablelacko s abili y
o  helawandcomplica edadminis a i ep ac ices.The
highcos o s a ingabusinessand imeneeded o i also
seem obep oblema icissues.
Theanalysiso  access o inancing o SMEsin he
selec edEUcoun ieswashampe eddue o helacko 
pa ialda a omsomeo  hecoun ies.Howe e ,on he
basiso  hea ailablein o ma ion,i shouldbeno ed ha 
companiesope a inginEs oniaha e os ugglewi h he
leas p oblemsin hisa ea(Table3).P oblemsa eonly
causedbyhighlosses ombaddeb s.O he aspec ssuch
as he o al ime o  ge ing paid o  banks’ willingness
olenddono causesigni ican di icul ies oeconomic
en i ies.
The ea ealsonomajo impedimen s o heaccess
o inancing o  small and medium-sized en e p ises in
Poland. None heless, he a ea ha  needs some epai 
indeed is he amoun  o  en u e capi al in es men  in
ela ion o GDP. I  should be highligh ed hough, ha 
hisp oblemexis sinmos coun ies, heonlyexcep ion
beingp e iouslymen ionedEs onia.
Thebigges p oblemsin e mso acqui ingcapi al,
a eendu edby hecompaniesope a inginSlo akia.This
coun yhas helowes le elo access opublic inancial
suppo  including gua an ees, and low willingness o 
banks olend.Mo eo e , heindica o o s eng ho legal
egula ions eached he lowes  alue in ela ion o he
o he  coun ies. I  is a measu e ha  indica es whe he 
legalp o isionsp o ec  he igh so lende sandhowi 
a ec s heeaseo access oc edi .Thehighe i s alue,
heeasie i is oob ain his o mo  inancing(Zalewska
&Zalewski,2012).
In o de  o e i y he p esen ed hypo heses he
Spea man’s ank co ela ion coe icien  was calcula ed
be ween he unc ioning condi ions o  en e p ises in
espec o  lexibleadminis a ion,access o inancingand
public deb  coun ed in ela ion o GDP, assessmen  o 
s a epolicyin e mso  axesandbu eauc acy(ca iedou 
by he Global En ep eneu ship Moni o  [GEM]), claims
oncen algo e nmen in ela ion oGDP,assessmen o 
s a epolicyin e mso suppo and ele ance(GEM),as
Table 3: Access o inancing o SMEs in he selec ed EU coun ies (no malized da a, ma king: BG - Bulga ia, PL
- Poland, CZ - Czech Republic, EW - Es onia, H - Hunga y, HR - C oa ia, LV - La ia, LT - Li huania, R - Romania, SK -
Slo akia, SLO – Slo enia)
Aspec s PL BG CZ EW H HR LV LT RSK SLO UE
Rejec ed loan applica ions and unac-
cep able loan o e s 0,64 0,46 1,00 0,87 0,44 0,68 0,27 0,00 0,65 0,70 0,41 0,72
Access o public inancial suppo inc-
luding gua an ees 0,81 0,51 0,91 0,61 0,78 0,54 0,95 1,00 0,79 0,89 0,00 0,57
Willingness o banks o p o ide a loan 0,86 0,89 1,00 0,76 0,61 0,67 0,73 0,88 0,75 0,81 0,00 0,48
Cos o bo owing o small loans ela i-
e o la ge loans 0,98 1,00 0,40 0,64 0,57 0,39 0,46 0,49 0,73 0,00 0,60 0,44
To al amoun o ime i akes o ge
paid 0,51 0,45 0,46 1,00 0,42 0,00 0,64 0,38 0,57 0,39 0,04 0,17
Bad deb loss 0,98 0,84 1,00 0,00 0,96 0,70 0,92 1,00 0,88 0,97 0,88 0,97
Ven u e capi al in es men s 0,00 0,00 0,00 1,00 0,01 ND ND ND 0,00 ND ND 0,01
S eng h o legal igh s index 0,57 0,86 0,57 0,57 1,00 0,29 0,86 0,43 1,00 0,57 0,00 0,39
Sum 5,35 5,01 5,34 5,44 4,79 3,27 4,81 4,17 5,36 4,34 1,93 3,75
Desc ip ion: ND – no da a a ailable
Sou ce: Au ho ’s own es ima ions based on 2015 SBA Fac Shee s
Ada Domańska, Robe Zajkowski
In luence o s a e pa icipa ion on business condi ions and en ep eneu ship in he EU
coun ies o he o me Eas e n bloc
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Uni e si y o In o ma ion Technology and Managemen in Rzeszów 15
„e-Finanse” 2018, ol. 14 / no. 2
wellas heassessmen o go e nmen en ep eneu ship
p og ams.
Calcula ed Spea man’s ank co ela ion coe icien s
(Table 4) show ha  he unc ioning condi ions o 
en e p isesa es onglynega i ely ela edwi h hele el
o publicdeb exp essedinGDP(in ela ion oGDP)and
claimsoncen algo e nmen  oGDP.Theya ehowe e 
s onglyposi i elyco ela edwi h heapp op ia es a e
policy on axes and bu eauc acy. This con i ms he i s 
hypo hesisassuming ha conside ables a epa icipa ion
in heeconomyhasanega i ee ec on he unc ioning
condi ionso en e p ises.
S a e policy in he ield o  suppo  and ele ance,
as well as go e nmen  business suppo  p og ams, a e
s onglyposi i elyco ela edwi h unc ioningcondi ions
o en e p ises,whichcon i ms hesecondhypo hesis.
Conclusions and ecommenda ions
The e is a signi ican  di e ence in he condi ions
unde  which businesses in he selec ed EU coun ies
ope a e.Thecauseo  hissi ua ionisadi e en le elo 
s a epa icipa ioninindi idualeconomies,aswellas he
di e en  e ec i enesso  business suppo p og ams.An
exampleo as a ewhich oala geex en suppo s he
de elopmen o en ep eneu shipandc ea escondi ions
o  a sui able business en i onmen  can be Es onia.
Li huaniaandLa ias andou aswellincompa ison o
he o he  economies. Poland came ou  qui e a e age
howe e .Hencei  i s shouldbe ecommended o Poland
ha  o allg oupso s akeholde si isc ucial oobse e
bes  p ac ices implemen ed in neighbou ing coun ies
whicha esuppo i eo en ep eneu shipde elopmen .
Nex  should be conside ed he likelihood o  success ul
implemen a ion (ins illa ion) o  business condi ion ha 
a especi ic o Poland’seconomy.Thisisaneasie way o
boos andge momen um o  hesu icien de elopmen 
o Polishbusinessen i ies.
On he o he  hand, in o de  o imp o e he
unc ioning condi ions o  en e p ises, he go e nmen 
mus in oducebusinesssuppo p og ams.I has obe
s essed howe e , ha  an inc ease in axes canno  be
he sou ce o  hei  unding because i  is ela ed o he
limi a iono incomein hep i a esec o .I isc ucial o
main ain public spending a  an app op ia e le el so as
no  o igge  a budge  de ici , which would lead o an
inc ease in he public deb  o  i  nega i ely a ec s he
businessen i onmen .I is he e o eimpo an  okeep
ap ope balancebe ween hes a e’spa icipa ionin he
economy,exp essedinpublicdeb , heamoun o  axes,
bu eauc acyandgo e nmen businesssuppo p og ams.
Table 4: Spea man’s ank co ela ion coe icien be ween examined cha ac e is ics.
Fea u es Responsi e adminis a ion Access o inance
Publicdeb coun edin ela ion oGDP -0,591 -0,755**
Go e nmen policies: axesandbu eauc acy 0,583 0,833**
Claimsoncen algo e nmen in ela ion oGDP -0,745** -0,518
Go e nmen policies:suppo and ele ance 0,667* 0,200
Go e nmen en ep eneu shipp og ams 0,788* 0,520
Sou ce: Own es ima ions based on Small Business Ac Fac Shee s and Global En ep eneu ship Moni o
**Co ela ion is signi ican a he 0.01 le el
*Co ela ion is signi ican a he 0.05 le el
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Uni e si y o In o ma ion Technology and Managemen in Rzeszów
16
„e-Finanse” 2018, ol. 14 / no. 2
Ada Domańska, Robe Zajkowski
In luence o s a e pa icipa ion on business condi ions and en ep eneu ship in he EU
coun ies o he o me Eas e n bloc
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