EMCC European Monitoring Centre on Change

Czech Republic: ERM comparative analytical report on emerging forms of entrepreneurship

  • Observatory: EMCC
  • Topic:
  • Published on: 21 March 2011



About
Country:
Czechia
Author:
Sona Veverkova
Institution:

Disclaimer: This information is made available as a service to the public but has not been edited or approved by the European Foundation for the Improvement of Living and Working Conditions. The content is the responsibility of the authors.

All the types of the below-mentioned emerging forms of entrepreneurship are common in the Czech Republic. Nevertheless, the Czech legal system does not recognise such concept of entrepreneurship; therefore no statistics on these forms of entrepreneurship are available, except for the self-employed. Discussions are continuously running regarding business environment, administrative and tax burdens, availability of loans, especially for new entrepreneurs and small and medium-size enterprises, possibilities for linkage and financing of cooperation with research workplaces of universities etc., but they concern undertaking generally, including the new forms of entrepreneurship, which, however, are not separated, therefore, in principle, no statistics exists regarding these possibilities of entrepreneurship. Exceptional are one-person enterprises/self-employed not employing any workers and part-time entrepreneurs (nevertheless, the Czech legal system does not separate these two forms, both categories fall into ‘the self-employed’). From the said alternatives, these two forms of entrepreneurship only are viewed separately and are paid special attention by public institutions, media, or professional organisations – opportunities for further business development, reduction of administrative burden and other matters related to this specific group are being discussed. Moreover, detailed statistics regarding this group are available.

Questionnaire

Part I: Public/policy discussion

General policy discussions and policy approach

Do the public/policy discussions specifically deal with the different forms of business activities, since when and for how long?

Table 1: Presence of the different emerging forms of entrepreneurship in the public debate
 

Yes, continuously since xx year? (Please indicate year)

Yes, on and off in the last 10 years

(Please indicate yes where it applies)

Yes, has been on the public agenda, but since xx year it is no longer part of the agenda (Please indicate year)

No, it has never been part of the public agenda

(Please indicate X where it applies)

One-person enterprises /self-employed

X, since 1990

     
Part-time entrepreneurs

X, since 1990

     
Parallel entrepreneurs      

X

Serial entrepreneurs      

X

Business transfers and successions      

X

For each of the entrepreneurship/business activities covered by policy discussions, which policy domains are they covered in? Please indicate with an ’X‘ where relevant.

Table 2: Policy domains engaged in the policy discussion of the emerging forms of entrepreneurship
 

Labour policies

Educational policies

Economic/Industrial policies

Innovation policies

Regional policies

Other (please specify)

One-person enterprises /self-employed

X

X

X

 

X

 
Part-time entrepreneurs

X

X

X

 

X

 
Parallel entrepreneurs            
Serial entrepreneurs            
Business transfers and successions            

In which media and forum do the public debate and policy discussions about the different types of entrepreneurship take place?

Please indicate whether they are implicitly (e.g. publications are covering entrepreneurs in general with implicit implications for the different forms of entrepreneurs/business activities) covered and/or explicitly mentioned (for instance parallel entrepreneurs are explicitly mentioned in publications) in these publications

Table 3: Media and forums discussing the emerging forms of entrepreneurship
 

Public media such as newspapers and magazines incl. electronic media

Policy documents and analysis

Proposed legislation and/or business support schemes

Others, please specify

One-person enterprises/self-employed

X

X

X

 
Part-time entrepreneurs

X

X

X

 
Parallel entrepreneurs        
Serial entrepreneurs        
Business transfers and successions        

Specific topics to describe the different types of entrepreneurship

What has motivated the public debate?

Please specify for each of the five forms of entrepreneurship:

Table 4: What has motivated the public debate of the emerging forms of entrepreneurship

Type of Entrepreneurship

Motivator

One-person enterprises/self-employed

The growing unemployment rate and attempt to deal with it partially via self-employment, tax policy (different taxation of employees and the self-employed), payments of social security and health insurance, the so-called ‘svarc-system’ (activity when people perform the same activities for the employer as potential employees but they are not employees, formally they act as independent entrepreneurs. Such method may be advantageous for both employers and employees, because it allows them to evade taxation and payments of social security and health insurance, as well as to transfer some of the business-related administration to the ‘employees’. The problem is in misuse of this system and in forcing potential ‘employees’ to pursue their activity as entrepreneurs to whom the labour code does not naturally apply, plus the administration connected with a start of entrepreneurship (attempt to eliminate it).

Part-time entrepreneurs

See above.

Parallel entrepreneurs  
Serial entrepreneurs  
Business transfers and successions  

What has been the focus of the policy discussion?

To help you answer question 5, we list some examples of key issues that could be addressed in the policy discussion:

Please specify for each of the five forms of entrepreneurship:

Table 5: The policy focus in the public debate within each of the emerging forms of entrepreneurship

Type of Entrepreneurship

Policy focus

One-person enterprises/self-employed

Administrative demandingness at the start of entrepreneurship, demanding administration during undertaking (tax returns), loan availability, especially for beginning entrepreneurs, compulsory business education already at elementary and secondary schools, consultancy for beginning entrepreneurs by labour offices.

Part-time entrepreneurs

See above.

Parallel entrepreneurs  
Serial entrepreneurs  
Business transfers and successions  

Has the public discussion resulted in a concrete outcome/impact?

No:

Yes:

Please specify for each of the five forms of entrepreneurship:

Table 6: Outcome or impact of the public debate of the emerging forms of entrepreneurship

Type of Entrepreneurship

Outcome/Impact

One-person enterprises/self-employed

Simplification of the administration at the start of entrepreneurship, educational activities for beginning entrepreneurs organised by labour offices and non-profit organisations, basic business lessons at secondary schools, support of beginning entrepreneurs from EU Structural Funds (advantageous loans, administrative assistance at the start of entrepreneurship (business plan), educational activities.

Part-time entrepreneurs

See above.

Parallel entrepreneurs  
Serial entrepreneurs  
Business transfers and successions  

Overall assessment

Within the last couple of years, to which extent has the public and policy discussion been more focused on the following different types of entrepreneurship compared to the business policy/entrepreneurship debate in general?

Table 7: Increased focus at the emerging forms of entrepreneurship?
 

To a low degree To a high degree

 

1

2

3

4

5

One-person enterprises/self-employed      

X

 
Part-time entrepreneurs      

X

 
Parallel entrepreneurs

X

       
Serial entrepreneurs

X

       
Business transfers and successions

X

       

Please list the main sources of information in the search for the above

Part II: Standardised structural data

Which standardised business statistics are available covering the different forms of entrepreneurship/business activities (explicitly or implicitly, i.e. also data that could be used to describe these forms of entrepreneurship without being published with this specific objective/heading)?

There are no methodologically fully consistent statistical data on the self-employed, there are several sources to acquire data from, while these sources vary methodologically.

Data sources:

- Business Register, where the Czech Statistical Office (CZSO) registers all the natural and legal persons who have a status of entrepreneurship,

- Labour Force Sample Survey, carried out by the CZSO (the monitored sample is translated to the entire population above the age of 15); results of this survey are a primary data source on sectoral, regional and other structures of the self-employed) – the most up-to-date information on self-employed including demographic statistics

- Administrative Registry of Economic Subjects/Entities maintained by the Ministry of Finance of the Czech Republic (MF ČR).

Auxiliary sources:

Commercial Register, kept by registration courts

Trade Register, administered by the Ministry of Industry and Trade of the Czech Republic

Register of Agricultural Entrepreneurs, administered by the Ministry of Agriculture of the Czech Republic

Register of VAT Payers, administered by the Czech Tax Authority

Register of Excise Duty Payers, administered by the Czech Customs Administration

- Data on the self-employed - foreigners, the data source is the Ministry of Industry and Trade of the Czech Republic,

- Data on the number of the insured paying social security insurance, the data source is the Czech Social Security Administration

Data on the other emerging forms of entrepreneurship are not available.

Table 8: Availability of business statistics about the emerging forms of entrepreneurship
 

Type of data available

Indicate access to data by an ‘X’ in the first column

First published

Indicate year

Time series of data

(Biannually, annually, quarterly, monthly, once only, other)

Data source for the data

One-person enterprises/ self-employed

Number of enterprises

X

?

1989

1993

Continuously

Monthly, quarterly,

quarterly

Registers of Economic Subjects / Entities

Business Register

Výběrové šetření pracovních sil

Enterprises by branch (please specify which NACE code digit level is available)

X

?

1989

1993

Continuously,

Monthly, quarterly,

quarterly

Registers of Economic Subjects / Entities (4 digit)

Business Register

Labour Force Sample Survey

Availability of regional data (at municipality level)

X

?

1989

1993

Continuously

Monthly, quarterly

Quarterly

Registers of Economic Subjects / Entities

Business Register

Labour Force Sample Survey

Type of ownership of enterprises (sole propriety, limited company, publically listed company, etc)

X

?

1989

1993

Continuously

Monthly, quarterly,

quarterly

Registers of Economic Subjects / Entities

Business Register

Labour Force Sample Survey

Economic performance e.g.:

Turnover

       

Exports

       

Employment

X

1989

1993

Monthly, quarterly

quarterly

Business Register

Labour Force Sample Survey

Others: returns, export (to EU only), import (from EU only), basic capital

X

1989

Monthly, quarterly

Business Register

Sustainability:

Number of new enterprises (start-ups) by year

X

 

Monthly, quarterly

Business Register

Number of discontinued enterprises, incl. bankruptcies –

   

Monthly, quarterly

quarterly

Business Register

Labour Force Sample Survey

survival rate of enterprises

       

Others, specify:

       
Part-time entrepreneurs

Number of enterprises

       

Enterprises by branch (please specify which NACE code digit level is available)

       

Availability of regional data (please specify)

       

Type of ownership of enterprises (sole propriety, limited company, publically listed company, etc)

       

Economic performance e.g.:

Turnover

       

Exports

       

Employment

       

Others: ___________

       

Sustainability:

Number of new enterprises (start-ups) by year

       

Number of discontinued enterprises, incl. bankruptcies –

       

Survival rate of enterprises

       

Others, specify:

       
Parallel entrepreneurs

Number of enterprises

       

Enterprises by branch (please specify which NACE code digit level is available)

       

Availability of regional data (please specify)

       

Type of ownership of enterprises (sole propriety, limited company, publically listed company, etc)

       

Economic performance e.g.:

Turnover

       

Exports

       

Employment

       

Others: ___________

       

Sustainability:

Number of new enterprises (start-ups) by year

       

Number of discontinued enterprises, incl. bankruptcies –

       

survival rate of enterprises

       

Others, specify:

       
Serial entrepreneurs

Number of enterprises

       

Enterprises by branch (please specify which NACE code digit level is available)

       

Availability of regional data (please specify)

       

Type of ownership of enterprises (sole propriety, limited company, publically listed company, etc)

       

Economic performance e.g.:

Turnover

       

Exports

       

Employment

       

Others: ___________

       

Sustainability:

Number of new enterprises (start-ups) by year

       

Number of discontinued enterprises, incl. bankruptcies –

       

survival rate of enterprises

       

Others, specify:

       
Business transfers and successions

Number of enterprises

       

Enterprises by branch (please specify which NACE code digit level is available)

       

Availability of regional data (please specify)

       

Type of ownership of enterprises (sole propriety, limited company, publically listed company, etc)

       

Economic performance e.g.:

Turnover

       

Exports

       

Employment

       

Others: ___________

       

Sustainability:

Number of new enterprises (start-ups) by year

       

Number of discontinued enterprises, incl. bankruptcies –

       

survival rate of enterprises

       

Others, specify:

       

Is it possible to crosstab or merge the demographic data identifying the individual persons running any of the five forms of entrepreneurships/business activities with the company data specified in question 9 in a common database for analytical purpose?

No.

Table 9: Availability of demographic statistics about the entrepreneur within the emerging forms of entrepreneurship
 

Type of data available

Indicated access to data by an ‘X’ in the first column

First published

Indicate year

Time series of data

(Biannually, annually, quarterly, monthly, once only, other)

Data source for the data

One-person enterprises/ self-employed Number of enterprises held by each entrepreneur/owner        
Gender

X

1993

quarterly

Labour Force Sample Survey

Ethnicity        
Civic status (married, single, children)        
Age

X

1993

Quarterly

Labour Force Sample Survey

Geographical location

X

1993

Quarterly

Labour Force Sample Survey

Educational background (last registered education)

X

1993

Quarterly

Labour Force Sample Survey

Current/previous employment of entrepreneurs (business experience)        

Sector familiarity of the entrepreneur – branch/NACE

X

?

1989

1993

Continuously

Monthly, quarterly,

quarterly

Registers of Economic Subjects / Entities

Business Register

Labour Force Sample Survey

Working hours of the entrepreneur        
Income of the entrepreneur        
Other types of data (Specify):        
Part-time entrepreneurs Number of enterprises held by each entrepreneur/owner        
Gender        
Ethnicity        
Civic status (married, single, children)        
Age        
Geographical location        

Educational background (last registered education)

       
Current/previous employment of entrepreneurs (business experience)        

Sector familiarity of the entrepreneur – branch/NACE

       
Working hours of the entrepreneur        
Income of the entrepreneur        
Other types of data (Specify):        
Parallel entrepreneurs Number of enterprises held by each entrepreneur/owner        
Gender        
Ethnicity        
Civic status (married, single, children)        
Age        
Geographical location        

Educational background (last registered education)

       
Current/previous employment of entrepreneurs (business experience)        

Sector familiarity of the entrepreneur – branch/NACE

       
Working hours of the entrepreneur        
Income of the entrepreneur        
Other types of data (Specify):        
Serial entrepreneurs Number of enterprises held by each entrepreneur/owner        
Gender        
Ethnicity        
Civic status (married, single, children)        
Age        
Geographical location        

Educational background (last registered education)

       
Current/previous employment of entrepreneurs (business experience)        

Sector familiarity of the entrepreneur – branch/NACE

       
Working hours of the entrepreneur        
Income of the entrepreneur        
Other types of data (Specify):        
Business transfers and successions Number of enterprises held by each entrepreneur/owner        
Gender        
Ethnicity        
Civic status (married, single, children)        
Age        
Geographical location        

Educational background (last registered education)

       
Current/previous employment of entrepreneurs (business experience)        

Sector familiarity of the entrepreneur – branch/NACE

       
Working hours of the entrepreneur        
Income of the entrepreneur        
Other types of data (Specify):        

Is the data freely accessible or does it require registration, payment and/or a special effort to access the data? Please explain the accessibility for each of the forms of entrepreneurs/business activities and datasets referred to above.

Table 10: List of statistical sources about the emerging forms of entrepreneurship

List data source/dataset

Explain the accessibility

Registers of Economic Subjects / Entities

Free, available on http://wwwinfo.mfcr.cz/ares/ares.html.en (in English), basic information only

Business Register

Basic information for free, other require payment, see http://194.48.241.48/eng/redakce.nsf/i/business_register (in English)

Labour Force Sample Survey

Surveys based on the data are free, detailed information require payment

   
   

Part III: Research

Please describe studies and research available nationally for each of the forms of entrepreneurs/business activities.

Table 11: List of studies and research about the emerging forms of entrepreneurship
 

List the references (author’s name, title of publication etc, year of publication, organisation)

A short summary of the contents (e.g. topic covered, methodology applied)

One-person enterprises/self-employed

Průša, L. – Baštýř, I. – Brachtl, M. – Vlach, J.: The Socio-economic Status of Self-employed Persons in Czech Society, Prague: RILSA, 2009, available on-line http://praha.vupsv.cz/Fulltext/vz_293.pdf (in english)

This study is qualitatively oriented and describes present labour law development in area of the flexible forms of employment in CR. Its first part is focused on labour law in other Member States. Information about other Member States coming from the output of international project The effects of new forms of employment on industrial relations and labour law development in EU. This paper evaluates labour law development both in area of the old/new flexible forms of employment and in the sphere of so called triangular labour relationships (temporary agency work, posting of workers, subcontracting). Paper is also focused on the illegal forms of employment on the European labour markets, which provide employers with the highest level of flexibility. Integral part of the text is also categorisation of the worker’s core labour rights in EU. The aim is to judge, to what extent these rights are ensured for the different groups of flexible workers.

One-person enterprises/self-employed

BAŠTÝŘ, Ivo – KOTÝNKOVÁ, Magdalena – BRUTHANSOVÁ, Daniela – NOVÁK, Jaroslav: Social economic position of self-employed persons in society (current report 2005), Prague: RILSA, 2006, available on-line

http://praha.vupsv.cz/Fulltext/vz_199.pdf (in Czech only)

This report summarises results of the 1.stage of an experimental project about social economic position of self-employed persons in society, which is worked-out by the RILSA in frame of the project about modern society and its changes. The analytic work was focused on philosophical - economic - law determination of self-employment, charting of development of statistical indicators gripping development of independent gainful activities during years 1990 - 2004 in wider connections of labour market (i.e. inclusive development of employment and unemployment) and on interception of differences in charges related to income taxes and contributions to social security insurance and state policy of employment and contributions to health insurance, paid by self-employers and employees.

Part-time entrepreneurs

See above.

See above.

Parallel entrepreneurs    
Serial entrepreneurs    
Business transfers and successions    

Sona Veverkova, Research Institute for Labour and Social Affairs

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