{"id":5876,"date":"2020-10-06T10:16:00","date_gmt":"2020-10-06T08:16:00","guid":{"rendered":"http:\/\/monitoringmsp.sk\/?p=5876"},"modified":"2022-03-15T11:24:38","modified_gmt":"2022-03-15T10:24:38","slug":"report-on-the-state-of-small-and-medium-sized-enterprises-in-the-slovak-republic-in-2019","status":"publish","type":"post","link":"https:\/\/monitoringmsp.sk\/en\/2020\/10\/06\/report-on-the-state-of-small-and-medium-sized-enterprises-in-the-slovak-republic-in-2019\/","title":{"rendered":"Report on the State of Small and Medium-Sized Enterprises in the Slovak Republic in 2019"},"content":{"rendered":"\n

The submitted Report on the State of Small and Medium\nEnterprises in the SR in 2019<\/em> presents a comprehensive view of the state\nand development of the business environment in the sector of small and\nmedium-sized enterprises and support of SMEs in the period under review. The\nobjective of the Report<\/em> is to\nhighlight the developmental trends and the most significant approved and\neffective legislative changes in course of the year which have an impact\non SMEs. It also seeks to highlight the existing barriers, together with\nproposals for measures to improve the business environment for the benefit of\nSMEs. <\/p>\n\n\n\n

The importance of small\nand medium-sized enterprises in the Slovak economy may be described using\nseveral indicators. In 2019, they represented 99.9% of the total number of\nbusiness entities in the Slovak economy. SMEs employed approximately three\nquarters (73.8%) of the active labour force in corporate economy and helped to\ncreate more than a half of the added value (54.9%). The slowdown in the growth\nof the Slovak economy was also reflected in the economic performance of the\nsector of small and medium-sized enterprises. The value added of SMEs in the\nnon-financial corporate economy reduced its growth rate to 3.6% year-on-year.\nIn absolute terms, there was a year-on-year increase in the gross output of\nSMEs – legal entities (4.3%). On the contrary, profit before tax of SMEs –\nlegal entities decreased (by 7.8%). According to the preliminary results of the\nSOSR, the volume of SME exports decreased by 2.5% year-on-year. Despite the\nreduced volume of SME exports, the share of SMEs increased year-on-year, which\nwas due to the fact that in the reference year of 2019 there was a more\nsignificant decrease in the volume of exports of large enterprises compared to\nsmall and medium-sized enterprises. <\/p>\n\n\n\n

According to records of\nthe Statistical Office of SR (hereinafter referred to as \u201cSOSR\u201d), the number of\nactive business entities in 2019 reached 595,042 while SMEs represented 559,371\nout of the above-stated figure. Compared to 2018, the number of active SMEs\nincreased by 6.3%. Out of the total number of enterprises, microenterprises\nrepresented 96.9% (577,827), small enterprises 2.4% (14,601) and medium-sized\nenterprises 0.5% (2,943) and large enterprises 0.1 % (671). The position of the\ncategory of micro-enterprises in Slovakia is more significant in comparison\nwith EU countries, given their achieved share of the total number of business\nentities in Slovakia. <\/p>\n\n\n\n

Due to the increase in\nthe number of small and medium-sized enterprises, the rate of business activity\nof SMEs also increased to 21.6% in 2019. Among the EU countries, Slovakia ranks\namong the countries with the highest number of small and medium-sized\nenterprises per total population. <\/p>\n\n\n\n

In 2019, there was a\npositive trend in the number of established small and medium-sized enterprises\nwith their number increasing by 8.7% year-on-year to 84 883 entities. The\nmost significant was the year-on-year increase in the liberal professions. A\nless positive fact in 2019 was represented by the decrease in the number of\ndisestablished business entities by 7.5%, i.e. 56,097 entities. The higher\nincrease in the number of established entities compared to the disestablished\nwas reflected in the year-on-year growth of the net increase of business\nentities, which increased by 11.1%, i.e., to 28,786 business entities. <\/p>\n\n\n\n

In 2019, the trend of\nincreasing representation of women among natural persons – entrepreneurs\nwas interrupted. The share of women in the total number of natural persons –\nentrepreneurs decreased by 1.0 pp. to the level of 28.2%. The development of\nthe age structure of natural persons – entrepreneurs has recently been characterized\nby an increase in the representation of entrepreneurs in younger age categories\nof less than 30 years of age. In 2019, the trend of increasing representation\nof young people also stopped, while the largest representation of entrepreneurs\nwas in the age category from 30 to 49 years. <\/p>\n\n\n\n

In line with long-term\ndevelopment trends observed in the sectoral structure of SMEs, in 2019 entities\noperating in the field of services had the most significant representation\n(46.4%). A slight increase in representation has been perceived in recent years\nin the construction sector, which represented 17.9% of all entities within the\nsize category of SMEs in 2019. 17.8% of small and medium-sized enterprises were\nactive in trade, 13.8% in industry and 4.1% in agriculture.<\/p>\n\n\n\n

As for the\nforeign-trade exchange of goods, large enterprises have maintained their\nlong-term dominant position. According to the preliminary results of the SO SR,\na year-on-year decrease in SME exports of 2.5% was recorded in 2019. On the\nother hand, due to a more significant decrease in exports of large enterprises\n(by 5.0%) than in the case of SMEs (by 2.5%), there was a year-on-year\nincrease in the share of SMEs by 0.5 pp. (to 28.0%). There was also an increase\nin the SME passive balance, which has been observed continuously for the sixth\nmonitoring period.<\/p>\n\n\n\n

The business\nenvironment in Slovakia is characterized by frequent legislative changes\naffecting, among other things, obligations and requirements with an impact on\nthe SME sector. In 2019, a number of major legislative changes affecting SMEs\nwere recorded. The most important of these include the following: the reduction\nof the VAT rate on accommodation services, the new legal regulation of\nconditions in the area of taxi services provision, which brings extensive\nchanges in the operation of the taxi service. Other significant changes in the\nlegislation includes the reduction of the administrative burden in connection\nwith the adoption of other measures through which it was possible to amend the\nAct against bureaucracy. Furthermore, this included the start of functioning of\npublic administration systems which abolished the obligation of natural persons\nand legal entities to submit several extracts from various registers and from\nthe end of 2019 other obligations were abolished to avoid the need to submit a\ncertificate of tax arrears, a certificate of customs arrears and confirmation\nof arrears on health insurance. <\/p>\n\n\n\n

In 2019 (with effect\nfrom 2020), a reduction in the corporate income tax rate was adopted from the\noriginal 21% to 15%. The amendment will also affect self-employed persons,\nwhose income tax rate will also be reduced from the original 19% to 15%. In\nboth cases, these are entities whose annual income does not exceed EUR 100,000.\nAt the same time, there has been a legislative change aimed at relieving the\ncourts by stopping some distraint executions. The effective solution to the\nproblem of conducting some long-term distraint executions applies to cases in\nwhich the debtor’s property is not seized or the execution is not stopped, even\nthough the debtor is poor. In addition, an extensive amendment to the Act on\nthe Social Economy and Social Enterprises was approved. The primary goal of the\namendment to the Act was to supplement the legislative regulation of the social\neconomy sector and to create suitable conditions for the social economy to\ndevelop and be a benefit not only for increasing employment. The legislator\nalso intended to adjust the support system to be socially acceptable and to\nfully comply with state aid rules. The amendment is intended to help eliminate\nspecific application problems. The concept of a company with a social impact\nhas also been fundamentally redefined so that more entities can meet the\nconditions set for a company with a social impact as an “intermediate\nstep” to meet the conditions specified for a social enterprise. <\/p>\n\n\n\n

On the other hand,\nduring the monitoring period, the formation or extension of several obligations\noccurred, in particular the introduction of a new insurance tax. The subject of\nthe tax is insurance in the non-life insurance sectors, which are listed in the\nannex to the relevant Act. The tax base rate is 8% for the relevant insurance.\nInsurance tax does not apply to Mandatory contracting insurance (MCI). <\/p>\n\n\n\n

The total volume of SME\nsupport in 2019 was of the level of EUR 694,626,313.80. In terms of the\nstructure of forms of financing, the direct form of support was the most common\nand reached a level of EUR 597,824,906.20, i.e., 86.1% of total SME support. A\ntotal of EUR 96,801,407.60 was provided in the form of indirect support for\nsmall and medium-sized enterprises, i.e., 13.9%. The overall real use was\nhigher year-on-year, but the year-on-year development in the area of SME\nsupport lost its dynamic trend. The most significant share in the support of\nSMEs in terms of individual categories is attributed to the category of loans\nor credits (40.6% of the total support provided to SMEs) and the category of\nsubsidies, NFP, grants (40.4% of the total support provided to SMEs). Bank\nguarantees (7.5%) and venture capital (5.1%) were also among the most important\ncategories. A more detailed overview of SME support is provided in Chapter 3.<\/p>\n\n\n\n

In 2019, the Slovak\nBusiness Agency (hereinafter referred to as \u201cSBA\u201d) continued to meet the\nobjectives of providing comprehensive assistance focused on the SME sector,\nwhile continuing to support them through the implementation of several national\nor international projects. In 2017 the SBA launched several national projects\nfunded by the OP Research and Innovation, offering a wide portfolio of services\nfor SMEs and business enthusiasts, whether in Bratislava or in individual\nregions of the Slovak Republic. <\/p>\n\n\n\n

The SBA actively\nassessed materials with an impact on the business environment, provided\nopinions and comments on proposals for new regulations through the Better\nRegulation Centre (hereinafter “BRC”). In 2018, the BRC assessed\n(from the content and procedural point of view) the reality of the captured\nimpacts in all the Business Environment\nImpact Analysis<\/em> and provided detailed opinions containing suggestions for\nbetter capturing the impacts of the new regulation on business environment. <\/p>\n\n\n\n

The submitted Report on the State of Small and Medium\nEnterprises in the SR in 2019 <\/em>contains also comprehensive proposals and\nrecommendations for further improvements of the business environment in the SME\nsector the main goal of which is to support positive trends and to contribute\nto a growth of the SME sector and its dynamics and in particular to enhance its\ncompetitiveness. <\/p>\n\n\n\n

In line with the needs\nof SMEs, it is necessary to continue to streamline support for SMEs. In order\nto promote a stable business environment, it is necessary to continue in a\nsystematic cooperation and coordinated approach of all relevant departments, as\nwell as taking into account the proposals and recommendations of individual\nentities. Mutual and intensive cooperation should be aimed at improving\nbusiness conditions and, ultimately, at increasing the competitiveness of not\nonly SMEs but also Slovakia as a whole.<\/p>\n","protected":false},"excerpt":{"rendered":"

The submitted Report on the State of Small and Medium Enterprises in the SR in 2019 presents a comprehensive view of the state and development of the business environment in the sector of small and medium-sized enterprises and support of SMEs in the period under review. The objective of the Report is to highlight the developmental […]<\/p>\n","protected":false},"author":2,"featured_media":2068,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","cybocfi_hide_featured_image":"","footnotes":""},"categories":[39],"tags":[],"class_list":{"0":"post-5876","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-news"},"yoast_head":"\nReport on the State of Small and Medium-Sized Enterprises in the Slovak Republic in 2019 - Monitoring MSP<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/monitoringmsp.sk\/en\/2020\/10\/06\/report-on-the-state-of-small-and-medium-sized-enterprises-in-the-slovak-republic-in-2019\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Report on the State of Small and Medium-Sized Enterprises in the Slovak Republic in 2019 - Monitoring MSP\" \/>\n<meta property=\"og:description\" content=\"The submitted Report on the State of Small and Medium Enterprises in the SR in 2019 presents a comprehensive view of the state and development of the business environment in the sector of small and medium-sized enterprises and support of SMEs in the period under review. 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