SWOT (Strengths, Weaknesses, Opportunities, Threats) ANALYSIS---> Countries in transition--CZECH REPUBLIC

CZECH REPUBLIC
STRENGTHS
• Clear and transparent state policy and programme based on Czech National Act № 299/1992
• The Government approval of the Industrial Policy Concept of the Czech Republic including various support possibilities applicable to SMEs
• Rapid adaptation to market demands
• Introduction of new technologies
• Creation of new jobs with low capital costs
• Contribution to quicker development of towns and villages through entrepreneurial activities
• Support to structurally affected and economically weak regions
• Sound infrastructure network for SMEs promotion – 7 Euro Info Centres, 29 Regional and Information Centres, 5 Business Innovation and Science and Technology Centres

WEAKNESSES
• Bureaucratic legal and administrative procedure of registering enterprises
• Lower economic power than large enterprises
• Lack of legal, economic, technical and managerial capacities
• Higher sensitiveness to law enforcement and to administrative problems and lengthy process of business disputes
• Insufficient orientation at foreign market
• Lower awareness of negative impacts of production on environment

OPPORTUNITIES
• Development of industrial production and industrial services
• Development of business relations with TNCs and wholesalers to become their suppliers
• Application of a innovative potential as a generator for added value production
• Creation of enterprise clusters
• Participation in the Multi-annual Programme for SMEs could strengthen infrastructure of supporting capacity

THREATS
• Higher competition as a result of market globalization
• Conservative approach of enterprise managers to introduction of certificated systems of management, including production quality management
• Lack of capital for development of entrepreneurial activities