CHARACTERISTICS OF THE IMPACT OF BUSINESS ENVIRONMENT ON ENTERPRISE GROWTH IN SLOVENIA’S TRANSITION ECONOMY
Viljem
Pšenicny, GEA
College of Entrepreneurship
Miroslav Glas, University of Ljubljana
Principal Topic
With four consecutive surveys of growing businesses in Slovenia during 1990’s, there is a great body of data describing their role in the national economy, and their significance for job creation. The crucial role of these businesses was clearly identified in strategic documents on SME development and it was understood that favorable external factors including highly entrepreneurial culture, and support systems have to be created to enhance their growth. The paper discusses the disappointing reality of current business environment from the aspect of dynamic entrepreneurs differing widely from their expectations as raised by government.
Method
The dynamic enterprises have been selected from the database of all incorporated enterprises in Slovenia, according to criteria applied by the European non-profit association of dynamic enterprises “Growth Plus,” Brussels. We examined whether statistically significant differences exist between 1993 and 2001 survey.
Results and Implications
The analysis indicates that virtually the same environmental factors influenced the business growth both in Slovenia and EU. Although no particular difficulties were recollected related to the start-up process, dynamic businesses did not enjoy real support during their growth phase. To foster entrepreneurs’ motivation for faster growth, survey suggests changes are necessary in the economic framework, regulations, taxation, and easing the access to capital for growth financing. Skilled labor force is becoming an important limiting factor. Also the public attitude and in particular the attitude among government and public institutions staff towards entrepreneurship and growing businesses is considered as rather negative if not even hostile with the tendency to deteriorate lately. Slovenia is not yet really an entrepreneurship friendly country to sustain lots of dynamic firms.
CONTACT: Viljem Pšenicny, GEA College of Entrepreneurship, 6320 Portoroń, Slovenija; (T) +386-5-671-0240; (F) +386-5-671-0250; viljem.psenicny@gea-college.si
2002 Babson College. All Rights Reserved. Last Updated March 2003.