Entrepreneurship and Management 3.2. BUSINESS ENVIRONMENT: SUPPORT FOR BUSINESS

Areas of Support Support to market mechanisms support for competition protection of property and contractual rights elimination of barriers for business activity Support to competitiveness support to innovations support to SME

Support to Competition Demonopolization splitting monopolies demonopolization of markets support for new entrants prevention of creation of monopolies Control of natural monopolies price setting control control of abusive contract provisions prevention of segmentation of markets

Protection of Property and Contractual Rights Prevention property rights transparency of ownership structures and transactions abuse prevention contracts regulations lists of abusive clauses etc. Enforcement state court system general courts commercial courts arbitral system

Barriers for Business Activity General characteristics of the country geographic position economic situation demographic situation social dysfunctions natural resources etc. The state economic policy laws and other regulations enforcement quality quality of state administration

Innovation Joseph Schumpeter’s definition - at least one of the following: the introduction of a new good or of a new quality of a good the introduction of an improved or better method of production the opening of a new market the conquest of a new source of supply of raw materials or half-manufactured goods the carrying out of the better organization

Small and Medium Enterprises EU definition: The category of micro, small and medium-sized enterprises (SMEs) is made up of enterprises which employ fewer than 250 persons and which have an annual turnover not exceeding 50 million euro, and/or an annual balance sheet total not exceeding 43 million euro.

Business Environment Institutions Central and local government agencies Innovation and business centers tasks knowledge and skill transfer transfer and commercialization of new technologies financial assistance advisory, technical and locational support support for networks examples of centers in Poland training and consulting institutions technology transfer centers technological parks business incubators  technological academic loan funds and credit guarantee funds industrial parks

Networks Advantages synergy effect reduction of uncertainty increased flexibility rationalization of production capacity utilization increased ability to access to scarce resources and skills speed of operation improved acquisition of information positive externalities

Business Clusters Definition: A network of connected businesses, suppliers, and associates in a specific field that are all located in the same geographical area. Clusters are thought to provide increased efficiency and productivity so businesses can be competitive on a national and global scale. (Business Dictionary) Features: geographic concentration (not all networks are) high degree of integration with the institutional and organizational environment of business: interrelated companies specialized suppliers (including service providers) companies from other related sectors and industries business environment institutions high-tech clusters often gather round prestigious universities local authorities

Silicon Valley, USA Aviation Valley, Poland