Bottlenecks of SME in services and craft enterprises and their elimination in rural areas of the Czech Republic: A trial to use traditional regional economic measures

Relatively few studies have explored the bottlenecks of SME of services and craft-enterprises in rural areas of the Czech Republic. On the basis of an theoretical and empirical approach in two sample regions in the Czech Republic these aspects are stressed. Starting form the obser-vation of differences in growth rates of new established enterprises between rural areas and agglomerations by shifts-share analysis a sector with strong locational influences on its development is identified and confirmed by a standardized questionnaire, which act also as measure to evaluate locational aspects of enterprises in these sector. The second section of this paper will stress variables that directly relate to the grading of location factors within local areas. Other data encompassed by the variables are descriptive. Some variables deal with the question of education skills of workers. We have also included data on total employment controlling for age and gender. Development performance of the enterprises will be assessed on the basis of their strengths and their weaknesses. Another set of variables concern human resources. A final set of variables pertain to the geographical linkages between region and enterprises, which have been recognized as important factors in the development of small firms. At issue is here, whether there are patterns of geographical linkages correlated with the local industrial mix. Variables such as local, statewide, and national technical input linkages address questions about non- material backward or input linkages. These linkages refer to a wide range of facilities or services such as research and technology centers as well as external services. Variables concerning forward or market linkages include sales of the enterprises in various regions. Another set of variables encompassed information on investment and venture capital. On the basis and knowledge of the current programs for SME development in the Czech Re-public the third sector will try to elaborate an structural policy approach which stress measures for assistance in regional development by a focus on networking as well in enterprises as in public organizations and between organizations and enterprises. This institutional approach makes it possible to draw some conclusions for future research on rural development in transition economies as well as an contribution to help the development of transition economies. In the last sector, an integrated policy approach for the rural development will be made and its impact on the current organization of the state and its territorial institutions.