THE IMPACT OF BUSINESS ENVIRONMENT ON REGIONAL DISPARITIES

Abstract

The structure of the business environment, as part of the socio-economic situation, indirectly affects a citizen’s quality of life. A “friendly” business environment has a positive effect on job formation, thus helping with employment. A country encourages formation and development of large enterprises through various incentives that reduce regional disparities, especially in less-developed regions. Nevertheless, a huge majority of enterprises in the European Union are small- and medium-sized. Self-employed persons are considered a specific form of business. Their activity is strongly influenced by state policy. This paper analyzes the business environment in regions of the Slovak Republic. Its principal aim is to examine the development of regional disparities and the related quality of citizens’ lives. An evaluation of statistical data of the structure of the business environment in the Slovak Republic indicated a change in legal units in relation to business. Although the number of legal units are stable, the number of legal persons has increased and that of natural persons-entrepreneurs decreased. Deepening of regional disparities was not observed across regions of the Slovak Republic.