Embedding of rural businesses in the South Moravian region

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Embedding of rural businesses in the South Moravian region

The aim of the paper is to present original findings obtained from the analysis of the SMEs (Small and Medium-Sized Enterprises) embedded in the South Moravia Region (Czech Republic). Data collected from the survey during 2010 was analyzed in the context of the DERREG project and the results were set with respect to globalization tendencies. The first part of the Business network questionnaire for the Czech case study took place during the spring. Forty three Small and Medium-Sized firms out of 550 approached replied to the email questionnaire. The responses provided us with a valuable insight in to how SMEs located in various territorial settings are able to develop and maintain a certain structure to their business network. In the second stage of activities, structured interviews were conducted during the summer of 2010 with follow-up questions from the questionnaire as well as the completion of an "Actor map". The analysis allowed the interviewee to classify the firms according to the dominant function of their networks. Results found that the majority of companies were not affected significantly by the economic crisis. The worst years for them were 2008 and 2009 where profits decreased in all areas of activity. Small businesses agreed that in a time of crisis it is much harder to succeed in the market against supermarkets and wholesalers, who can afford to lower the prices. A positive side of the crisis can be the fact that much more companies try to break into foreign markets where they get offered better prices for some commodities. The majority of respondents agreed that the economic crisis is retreating and they look optimistically into the future.

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European Countryside

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