Impact of the Economic Crisis on the Small and Medium-sized Companies in the Czech Republic

Abstract

Purpose: Purpose of this article is the economic crisis. This topic is actually very actual and interesting. Results of the crisis induced not only activities of enterprises worldwide, but also most of the nation economics of individual states. The economic crisis is a problem for state, companies and people, which have to be solved urgently. Especially in the Czech Republic there is lower buying power (no money among the people), companies have problems with financing of their activities (buying materials, labor costs, fixed costs of their activities), and lot of companies had to ended their activities. Scientific aim: Scientific aim of this article is summarization and overview of the crisis, which had already taken place in 1929 and the current economic crisis, with the consequences that the companies have to cope with. Methodology/methods: Methodology and methods which we used are following. This article includes theoretical information about the crisis in the history and its impact on activities of the states. Consequently there is information about the actual crisis which includes theoretical data, statistical data and our research of small and medium-sized enterprises (family enterprises). The research focuses on perceptions of the crisis. In the article is used method of the questionnaire research, which is analyzed and presented using graphical methods. Findings: Findings of this article are new information in this area, which can be interesting and useful for another research. Within the frame of new information we deduced results, which are concerned with this issue. Most of results include explaining of the facts – new information. Conclusions: Conclusion of this article is the compact review of the size of the small and mediumsized enterprises in the Czech Republic, which were affected due to the economic crisis. In the time of crisis there is (on the market) a rule to reduce the income of the population and thus to lower purchasing power. Companies must choose different options, which should lead to the continuation of business as well as to optimize resources (e.g. production).