Influence of state participation on business conditions and entrepreneurship in the EU countries of the former eastern bloc
Abstract
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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
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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 Thepu poseo hispape is oshow heex en owhichs a ein e e encein heeconomya ec s
hecondi ionso unc ioning o smallandmedium-sizeden e p isesineconomieso he o me
eas e nblocwhichha eal eadygone h ough heEUaccessionp ocess.Theda aonSMEs’si u-
a ionwe e aken om heFac Shee so heEUp og amSmallBusinessAc .Due o he ac ha
he a iablesp oposed odesc ibe hebusinessen i onmen di e signi ican lyi wasnecessa y
os anda dize hem.Theze ouni a iza ionme hodwasapplied o ankcoun iesp ope ly.Special
a en ionin hispape isde o ed oPolandand hesi ua iono businessesope a ingin hiscoun-
y.The esea chhasiden i iedsomea eas equi ingu gen changes.I isc ucial oimp o e he
si ua ionso ha companiescanplayap ope olein heeconomy.Acoun ywhichcouldbean
exampleo goodsolu ions ha suppo businessde elopmen isalsodesc ibed.
1 Ma iaCu ie-SkłodowskaUni e si yinLublin,Facul yo Economics,Depa men o Banking,e-mail:[email p o ec ed],ORCID:0000-0002-
8239-4319.
2 Ma iaCu ie-SkłodowskaUni e si yinLublin,Facul yo 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
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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 ingin he o me eas e nbloc
coun ies,whichnowbelong o heEu opeanUnion.The
SMEsec o playsaspecial oleinde elopmen o indi idual
economies. SMEs a e conside ed o be s imulan s o a
coun y’seconomicsi ua ion.Thei ope a ionisasigno
ai compe i ionand e lec sasocie y’sen 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 heEUeconomy,allowingc ea iono new
jobsandensu ingahighe le elo socialcohesion.The
abili y oexploi hepo en ialo smallandmedium-sized
en e p ises will be decisi e o he u u e p ospe i y o
heEu opeanUnion(Eu opeanCommission[EC],2008a).
Becauseo heimpo an oleo heSMEsec o o
he u he de elopmen o heEU,i wasposi ionedin he
cen e o heLisbonS a egy o g ow handjobs h ough
heuseo apa ne shipapp oach(Eu opeanCommission,
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
whichwould akein oaccoun hedi e si y.Thus,inJune
2008 he Eu opean Commission p esen ed an ini ia i e
whichwould u he s eng hensus ainableg ow hand
compe i i eness o SMEs, called he Small Business Ac
(SBA) o Eu ope(Eu opeanCommission,2008b).
The undamen al assump ion o he SBA was ha
mos impo an o achie ing success is o change he
pe cep iono en ep eneu sinsocie y.Posi i epe cep ion
o aspec sconce ning heSMEs unc ioning,in he o mo
inc easedemploymen andeconomicp ospe i y,should
encou agepeople os a abusiness.I isapi o alpoin ,
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 edwillingness o ake iskshouldbesuppo edby
poli icalleade s, hemedia,and heau ho i ies.
Thep og amaims oc ea eanewpolicy amewo k,
consolida ingal eadyope a ingsuppo 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
andMembe S a esle el.Thesep inciplesa eessen ial o
con ibu eadded alue,ensu eequalcondi ions o SMEs
and imp o e he legal and adminis a i e en i onmen
h oughou heEu opeanUnion(Eu opeanCommission,
2008b).
Li e a u e e iew
Resea ch shows ha due o he ac ha o me
Eas e bloceconomieswe eope a ingunde heideology
o communismandla e wen h ough heEUaccession
p ocess,anumbe o simila i iesmaybeno icedbe ween
hem(Cza necka,2007).
Fo his eason,many esea che sb ingup hesubjec
o unc ioning condi ions o en ep eneu ship in hese
coun ies.The inalshapeo hebusinessen i onmen in
eachcoun yis ied ohis o icalandcul u alissues.This
si ua ionled ode elopmen o solu ionswhichappea 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
andine icien law(Tonoyan,e .al.,2010).Fu he mo e,
he eisalowe accep ance o en ep eneu ialac 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 ea ealsosigni 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
economiesha ehighe ins i u ionalandindi idualle els
o de elopmen hansimila lyde elopede iciency-d i en
economies (T umbull & Sze b, 2016). I is impo an o
ecognise he easons o hisdi 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
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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 op i a een 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 as a e’sconside ablepa icipa ion
in heeconomyhasanega i ee ec on he unc ioning
condi ionso en e p ises.Howe e ,i iswo hno ing ha
simul aneouslywi hagene al“c owdingou ”e ec he e
a esome con adic o y examples such as Ge manyand
No waywhe ewecanobse ehighin ol emen o he
publicsec o in heeconomyanda ela i elylowle elo
publicdeb .
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.Aposi i eimpac o public
p og ams on he le el o employmen was no ed in
Sweden(No man&Bage -Sjög en,2010).Theimpac o
localini ia i es,launchedby heEn e p iseInsigh ,on he
newly o meden e p isesandsel -employmen a eswas
examinedinG ea B i ainand u nedou obeposi i e
(Bo ham,2012).Thesecondhypo hesis(H2)assumes ha
businesssuppo p og amsca iedou by heS a eha e
aposi i ee ec on unc ioningcondi ionso 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 nblocwhicha enowmembe so he
Eu opeanUnion. Relyingon he li e a u e,11coun ies
we e selec ed o a de ailed analysis o he unc ioning
condi ionso en e p ises:Bulga ia,C oa ia,CzechRepublic,
Es onia, Li huania, La ia, Poland, Romania, Slo akia,
Slo enia,andHunga y.Thecoun ieso he o me Eas e n
blocalsoinclude hes a eso he o me Yugosla ia.Wha
ismo e,i shouldbe akenin oconside a ion ha Bal ic
Coun ies a e o me So ie epublics and addi ionally
e ysmallgeog aphicalen i ies.Due o hecul u aland
poli ical pas hey ha e qui e di e en backg ound and
posi ion hane.g.Poland,Hunga y,o heCzechRepublic.
Hence some imes solu ions ha a e wo kable in Bal ic
coun iescould ailino he economicen i onmen sand
canno beimplemen edino he economies.
The in o ma ion used in his a icle comes om
heFac Shee so indi idualcoun ieson hedeg eeo
implemen a iono heP og ammeo heSmallBusiness
Ac in2015.Thead an ageso employing hissou cea 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 ionbyce aincoun ieso hei o allack.
Asapa o heSmallBusinessAc p og am,di e en
a easconce ning he unc ioningo smallandmedium-
sizeden e p isesa ep esen edinacco dancewi hi s10
p inciples.Theyinclude:
1) En ep eneu ship,
2) “Secondchance”,
3) “Thinksmall i s ”,
4) “Responsi eadminis a ion”,
5) S a eaidandpublicp ocu emen ,
6) Access o inance,
7) SingleMa ke ,
8) Skillsandinno a ion,
9) En i onmen ,
10) In e na ionalisa ion.
Because o he la ge ex en o hese analyses,
aspec sp esen edin he a icle ocusonly on lexibili y
o adminis a ionanda ailabili yo inancing o SMEs.
Thesea easwe eselec edbecauseo hei impo ance
o unc ioningand o ma iono businessen 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
wasnecessa y os anda dize hem.Theze ouni a iza ion
me hod was applied o ank coun ies. This me hod is
applicablewi hbo hquan i a i eandquali a i e a iables
andi ssimplici yleads oeasyin e p e a iono esul s.
Mo eo e , hisme hod ul ils h eeimpo 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 esa e hesame.
2) Thelowe anduppe limi so in e also a iabili y
o all ea u esa e hesame:[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 hin hele elo analysedphenomena) hedis ance
indica o wasusedwhichdi idesindi idualcoun ies om
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Uni e si y o In o ma ion Technology and Managemen in Rzeszów
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„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
hebes esul (including heEUa e age).The ollowing
o mulao s anda diza ionisused henin he o m:
whe e:
xs,K– alue o a no malized a iable x o a gi en
coun y,
xK– alueo a aw a iablex o agi encoun y,
xKmin,xKmax– alueo indica o in heweakes and he
bes coun y o a a iablex.
In hecaseo inhibi o s(i i inc eases, he alueo
analysedphenomenadec eases)opposi escaling o mula
o s anda dizingwasapplied.I ook he o mo :
By using his ype o s anda diza ion da a can be
compa edandagg ega ed.Inaddi ion, hedi e si ica ion
o scaling o boos e sandinhibi o sallowus ode e mine
he co ec di ec ion and s eng h o an occu ing
phenomenon.
Da aconce ning hepa icipa iono hes a ein he
economyandbusinesssuppo p og amswe e aken om
he Global En ep eneu ship Moni o (Kelley, Singe &
He ing on,2016).Spea man’s ankco ela ioncoe icien
which is a nonpa ame ic measu e o ank co ela ion,
wasemployed o e i y hehypo 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 idualcoun ies.I sspeci ici ydependson he le el
o de elopmen andsocio-poli icalsys emachie edbya
gi ens a e.E eni he eisag ea simila i yo ope a ing
condi ions, he oleo smallandmedium-sizeden e p ises
willbedi e en ,and hedeg eeo de elopmen willbe
di e en ia ed(Igna iuk,2011).
When analyzing he p opo ion o he numbe o
smallandmedium-sizeden e p isesin he o alnumbe
o economicen i iesi mus bemadeclea ha i s ooda
asimila le elinselec edcoun ieso heEu opeanUnion
( heyaccoun ed o mo e han99.5%o allcompaniesin
allanalyzedeconomies),so hein o ma ionwasno he
subjec o deepe inqui y.Howe e ,p esen a iono da a
conce ningpa icipa iono peopleemployedin heSME
sec o in ela ion o he o al numbe o employees in
en e p isesandsha ein headded alueo he a ious
ypeso en i iesshouldbegi enmo ea en ion(Table1).
Smallandmedium-sizeden e p isesemployed om
67% o almos 79% o all company employees in 2015,
so his sha ewassigni ican lydi 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%
CzechRepublic 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 shouldbemen ioned ha i didno 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
wasinLa iaandalsowhe esuchcompaniesgene a ed
high(highe han heEUa e age)pe cen ageo 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 ein he added aluea ea,
howe e , belonged o SMEs ope a ing in Es onia (o e
75%).Themainasse in a ou o suchahighle elseems
obeala gepe cen ageo companiesin he in o ma ion
echnology and communica ion sec o . Mo eo e , he
publicsec o o hiscoun ycon ibu edsigni ican ly o
hede 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 elopedanduncompe i i eho elin as uc u e.
Low pa icipa ion in his ega d was also p esen ed by
smallandmedium-sizeden e p isesope a inginPoland.
I was p obably due o a high p opo ion o people
employedin hesmalles 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 edadded alue,on heeconomieso heseEu opean
Unioncoun ies,didno di e signi ican ly om heEU
a e age.I shouldbeno ed,howe e , ha hesi ua ion
inno he ncoun ies(Li huania,La iaandEs onia)was
muchbe e hanino he coun ies.Theycan he e o e
be a ole model o o he economies, such as Poland,
whe e heSMEsec o ’ssha eingene a edadded alue
iss illqui elow.
Responsi eadminis a ionisanimpo 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 iaandEs oniape o m hebes .The
au ho i ies in hese coun ies y o c ea e a iendly
businessen i onmen .The e o e,di e en solu ionsa e
implemen edsuchas heLa iansinglecus 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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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 hepublicau ho i iesisconduci e osubsequen
highadded aluegene a edby heseen i ies.
I isalsowo hpayinga en ion o he ac ha he
indica o scalcula ed o Polanda ehighaswell.Wecanbe
p oudo hesho imenecessa y o hees ablishmen
o anen e p iseandlowcos o suchap ocess.P oblems
occu in he axsys em,especiallyin hela genumbe and
imespen onmaking axpaymen s.En e p isesalsoha e
o acehigh ola ili yinlegalp o isionsands a epolicy,
aswellas hecomplexi yo adminis a i ep ocedu es.
The bigges challenges, howe e , awai he
companies ha ope a einC oa iaandSlo akia.Themos
impo an issues he ea eaconside ablelacko s abili y
o helawandcomplica edadminis a i ep ac ices.The
highcos o s a ingabusinessand imeneeded o i also
seem obep oblema icissues.
Theanalysiso access o inancing o SMEsin he
selec edEUcoun ieswashampe eddue o helacko
pa ialda a omsomeo hecoun ies.Howe e ,on he
basiso hea ailablein o ma ion,i shouldbeno ed ha
companiesope a inginEs oniaha e os ugglewi h he
leas p oblemsin hisa ea(Table3).P oblemsa eonly
causedbyhighlosses ombaddeb s.O he aspec ssuch
as he o al ime o ge ing paid o banks’ willingness
olenddono causesigni ican di icul ies oeconomic
en i ies.
The ea ealsonomajo impedimen s o heaccess
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
hisp oblemexis sinmos coun ies, heonlyexcep ion
beingp e iouslymen ionedEs onia.
Thebigges p oblemsin e mso acqui ingcapi al,
a eendu edby hecompaniesope a inginSlo akia.This
coun yhas helowes le elo access opublic inancial
suppo including gua an ees, and low willingness o
banks olend.Mo eo e , heindica o o s eng ho 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
legalp o isionsp o ec he igh so lende sandhowi
a ec s heeaseo access oc edi .Thehighe i s alue,
heeasie i is oob ain his o mo 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 lexibleadminis a ion,access o inancingand
public deb coun ed in ela ion o GDP, assessmen o
s a epolicyin e mso axesandbu eauc acy(ca iedou
by he Global En ep eneu ship Moni o [GEM]), claims
oncen algo e nmen in ela ion oGDP,assessmen o
s a epolicyin e mso 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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„e-Finanse” 2018, ol. 14 / no. 2
wellas heassessmen 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 isesa es onglynega i ely ela edwi h hele el
o publicdeb exp essedinGDP(in ela ion oGDP)and
claimsoncen algo e nmen oGDP.Theya ehowe e
s onglyposi i elyco ela edwi h heapp op ia es a e
policy on axes and bu eauc acy. This con i ms he i s
hypo hesisassuming ha conside ables a epa icipa ion
in heeconomyhasanega i ee ec on he unc ioning
condi ionso 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 onglyposi i elyco ela edwi h unc ioningcondi ions
o en e p ises,whichcon i ms hesecondhypo 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.Thecauseo hissi ua ionisadi e en le elo
s a epa icipa ioninindi idualeconomies,aswellas he
di e en e ec i enesso business suppo p og ams.An
exampleo as a ewhich oala geex en suppo s he
de elopmen o en ep eneu shipandc ea escondi ions
o a sui able business en i onmen can be Es onia.
Li huaniaandLa ias andou aswellincompa ison o
he o he economies. Poland came ou qui e a e age
howe e .Hencei i s shouldbe ecommended o Poland
ha o allg oupso s akeholde si isc ucial oobse e
bes p ac ices implemen ed in neighbou ing coun ies
whicha esuppo i eo en ep eneu shipde elopmen .
Nex should be conside ed he likelihood o success ul
implemen a ion (ins illa ion) o business condi ion ha
a especi ic o Poland’seconomy.Thisisaneasie way o
boos andge momen um o hesu icien de elopmen
o Polishbusinessen 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 oducebusinesssuppo p og ams.I has obe
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 iono incomein hep i a esec o .I isc 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
businessen i onmen .I is he e o eimpo an okeep
ap ope balancebe ween hes a e’spa icipa ionin he
economy,exp essedinpublicdeb , heamoun o axes,
bu eauc acyandgo e nmen businesssuppo 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
Publicdeb coun edin ela ion oGDP -0,591 -0,755**
Go e nmen policies: axesandbu eauc acy 0,583 0,833**
Claimsoncen algo e nmen in ela ion oGDP -0,745** -0,518
Go e nmen policies:suppo and ele ance 0,667* 0,200
Go e nmen en ep eneu shipp 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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