Family Business in the Czech Republic: Actual Situation

Abstract

Purpose of the article: The purpose of this paper is to define the actual situation of family business on the market, particularly focused on qualities of family business and its strengths or weaknesses. The object of research is the family business as an economical phenomenon. The study includes two subjects: firstly, to find out a specification of the family business, to analyze family ties within the business in accordance with the laws of the Czech Republic or to find out the current economic situation in family business and, secondly, to identify the features of family business as well as the difficulties faced thereby, lying in a base of two main components, namely the family system and the same of entrepreneurship. Methodology/methods: The article was prepared on the basis of general theoretical scientific methods, particularly on those of analysis, synthesis, analogy, comparison, generalization and deduction, or the method of expert estimates. For the analysis of the actual situation in big Czech family business enterprises, it was decided to use the secondary data of a top research-journal for this area, namely the Forbes.cz. In accordance with one of the paper goals, a SWOT analysis was applied to find out the basic strengths and weaknesses of family business. It was decided to verify the received information by interviewing several representatives of the family business in the Czech Republic. Scientific aim: The aim of scientific research is to improve the understanding of family business from the perspective of difficulties faced by family business and its economic perspectives. Findings: The results of this study have allowed the finding of a definition for the family business based on family ties and the laws of the Czech Republic. Another finding is that family business as a motor of the Czech economy has a real potencial for its development and it is able to enhance the Czech economy competitiveness on the world market. In addition, the main features of strengths and weaknesses of family business were inquired. Conclusion: This study has contributed to creation of a family business research theoretical body providing an important first step to gaining a nearer insight into the strengths and weaknesses of the family business influencing its effective function. This study has allowed it, to find out the nature and importance of family business development in the Czech Republic.