A model of measurement of the quality of business environment in SME segment

Abstract

This paper presents a theoretical and methodological model of measurement of the quality of business environment in the segment of Small and Medium-Sized Enterprises (SMEs) and introduces an IQSME index. The paper presents the way of selection and definition of the important factors that form business environment, the analysis of their interconnections and quantification of their influence. According to the results of the application of the created model we can state that the conditions for doing business in the Czech Republic are quite challenging. The value of IQSME for the Czech Republic is at the lower end of the range of possible values. We found that Czech entrepreneurs quite negatively evaluate the government’s approach and its attempts to develop suitable conditions for doing business, the attitude of the financial market players in providing the opportunities of external financing for their entrepreneurial activities, current level of business risks, but are satisfied with the attitude of their surroundings to their business activities.