A Golden Opportunity: Exporting Easy Flame

4552 Words Sep 26th, 2010 19 Pages
E-Leader, Prague 2007

IMPORTANCE OF MANAGERIAL SKILLS AND KNOWLEDGE IN MANAGEMENT FOR SMALL ENTREPRENEURS
Zuzana Papulová Matej Mokroš Comenius University Faculty of Management Department of Strategy and Entrepreneurship Bratislava, Slovakia

Abstract Small enterprises are generally considered to be more operative, can respond quicker and are more flexible than big companies, which form their strategies for years ahead. Limited focus on operations can have its advantages, but can also prevent enterprise to exploit new unseen opportunities. Development of market economy in Central and Eastern Europe has been suspended for decades, while for the rest of the world the problems of small and medium enterprises are in the centre of
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Government efforts are trying to speed up the change of the size structure with various support programs and instruments. Recently, the most significant changes that influenced the business environment are:
• establishment of new tax system – flat tax of 19% • speeding up of the procedures needed to start business • change from defined benefit to defined contribution pension plans • slight improvement of communication with tax offices

Although the growth of gross domestic product shows record values (8.3% for the year 2006) and there is improvement of business environment (Slovakia was in the year on 43rd place and in the year 2005 advanced to 39th place from the view in terms of companies’ competitiveness), situation of Slovak business environment is still neither easy nor ideal.
1.2. Problems of small enterprises

Several conducted researches prove that there is a range of problems with small and medium enterprises. Based on studies in USA, there is a prevailing notion that “small enterprises simply do not work.” Even though there are conditions for entrepreneurship and new enterprises are established, the rate of failure is on high level too. “Within any given year, close to one million small enterprises are founded. Sadly, at least 40% of those businesses fail within the first year. The failure rate over time is nothing short of staggering. Of the one million

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