CHAPTER 1 The Importance of Small and Medium-Sized Enterprises in the Economy of a Country .... 11 1.1 Definition of Entrepreneur, Entrepreneurship and Enterprise ..........................................12 1.2 Functions of an Enterprise ................................................................................................................12 1.3 Classification of Small and Medium-Sized Enterprises (SMEs) .........................................13 1.4 Impulses and Drivers of Entrepreneurship ................................................................................16 1.5 National Economic Functions of SMEs in the Slovak Republic, Features, Advantages and Disadvantages of SMEs in the Slovak Republic .......................................17 1.6 Development of Entrepreneurship in the Slovak Republic ..................................................18 CHAPTER 2 The Business Environment in the EU and the Enterprise Life Cycle ................................. 21 2.1 Business Environment in the Slovak Republic ..........................................................................22 2.2 Business Life Cycle ..............................................................................................................................24 3CONTENTS CONTENTS List of Abreviattions...................................................................................................... 7 List of Tables ................................................................................................................. 9 List of Figures .............................................................................................................. 10 CHAPTER 1 The Importance of Small and Medium-Sized Enterprises in the Economy of a Country .... 11 1.1 Definition of Entrepreneur, Entrepreneurship and Enterprise ..........................................12 1.2 Functions of an Enterprise ................................................................................................................12 1.3 Classification of Small and Medium-Sized Enterprises (SMEs) .........................................13 1.4 Impulses and Drivers of Entrepreneurship ................................................................................16 1.5 National Economic Functions of SMEs in the Slovak Republic, Features, Advantages and Disadvantages of SMEs in the Slovak Republic .......................................17 1.6 Development of Entrepreneurship in the Slovak Republic ..................................................18 CHAPTER 2 The Business Environment in the EU and the Enterprise Life Cycle ................................. 21 2.1 Business Environment in the Slovak Republic ..........................................................................22 2.2 Business Life Cycle ..............................................................................................................................24 CHAPTER 3 The Personality of the Entrepreneur ...................................................................................... 27 3.1 The Entrepreneur‘s View ...................................................................................................................28 3.2 The Personality of the Entrepreneur .............................................................................................29 3.2.1 Personality Aspects of a True Entrepreneur .................................................................30 3.3 Profile of a Successful Entrepreneur..............................................................................................30 3.3.1 Discipline ...................................................................................................................................31 3.3.2 Creativity....................................................................................................................................32 3.3.3 Motivation .................................................................................................................................34 3.3.4 Passion .......................................................................................................................................35 3.3.5 Self-Awareness .........................................................................................................................35 3.3.6 Empathy .....................................................................................................................................36 3.3.7 Risk-Taking ...............................................................................................................................37 CHAPTER 4 Legal Forms of Business............................................................................................................ 39 4.1 Legal form of Business ........................................................................................................................40 4.2 Legal forms of Business of a Natural Person ..............................................................................40 4.2.1 Self-Employed ..........................................................................................................................41 4.2.2 Business Conducted Through Special Regulations (Free Profession).................42 4.2.3 Self-Employed Farmer ..........................................................................................................43 4.3 Legal Forms of Business of Legal Person .....................................................................................43 4.3.1 Public Company ......................................................................................................................45 4.3.2 Limited Partnership ...............................................................................................................46 4.3.3 Limited Liability Company .................................................................................................47 4.3.4 Joint-Stock Company ............................................................................................................49 4.3.5 A simple Joint-Stock Company .........................................................................................50 4.3.6 Cooperative Society...............................................................................................................52 4.3.7 A European Economic Interest Grouping.....................................................................54 4.3.8 European Company ...............................................................................................................55 4.3.9 European Cooperative Society ..........................................................................................57 4.3.10 European Private Company ................................................................................................59 4.4 Business without Legal Personality ...............................................................................................59 4.4.1 Agreement on the Silent Partnership..............................................................................59 CHAPTER 5 Business Ideas and Creation of a Business Plan .................................................................... 61 5.1 Budding Entrepreneur .......................................................................................................................62 5.2 Where to Look for Business Ideas? ...............................................................................................62 5.3 Business Plan..........................................................................................................................................63 5.3.1 Contents of the Cover Page of the Business Plan........................................................64 5.3.2 Executive Summary ...............................................................................................................65 5.3.3 Description of the Company ..............................................................................................65 5.3.4 Organizational Structure and Management ................................................................65 5.3.5 Description of Products/Services ....................................................................................65 5.3.6 Market Analysis ......................................................................................................................65 5.3.7 Description of Competition and its Analysis ...............................................................66 5.3.8 Marketing and Sales Plan – Market Entry Strategy ...................................................66 5.3.9 Assuring Intellectual Property Rights (IRP) ................................................................67 5.3.10 Production Plan .......................................................................................................................67 5CONTENTS 5.3.11 Personnel Plan..........................................................................................................................68 5.3.12 Financial Planning and Financial Plan ............................................................................68 5.3.12.1 Structure, Content and Level of Detail of the Financial Plan and its Implementation ........................................................................................69 5.3.12.2 Financial Statements..............................................................................................71 5.3.12.3 Methods, techniques and models in creating a financial plan ...............74 5.3.13 Annexes to the Business Plan .............................................................................................76 CHAPTER 6 Business Support for Small and Medium-Sized Enterprises and Enterprise Europe Network ............................................................................................. 77 6.1 Legislative and Institutional Framework of SME Support ..................................................78 6.1.1 Legislative and Framework for SME Support .............................................................78 6.1.2 European Network for SME Support..............................................................................79 6.2 Enterprise Europe Network ............................................................................................................80 6.2.1 Consulting areas of EEN.......................................................................................................81 6.3 Financing through EU Policies, Institutions and Projects .....................................................83 6.4 Slovak Business Agency .....................................................................................................................85 6.4.1 Financial Services ..................................................................................................................86 6.4.2 Non-Financial Services.........................................................................................................86 6.4.3 Family Business Support Scheme .....................................................................................87 6.5 SARIO – Slovak Agency for the Development of Investments and Trade ...................87 CHAPTER 7 Innovation in Small and Medium-Sized Enterprises........................................................... 89 7.1 Definition of Innovation, Invention, Innovation Potential ..................................................90 7.2 The role of Innovation in Business.................................................................................................91 7.3 Types of Innovation.............................................................................................................................92 7.3.1 Innovation Matrix ..................................................................................................................92 7.3.2 Other Types of Innovation ..................................................................................................94 7.4 Innovation Barriers of SMEs............................................................................................................95 7.5 Business Model and Business Model Canva ..............................................................................96 7.5.1 Business Model Canvas ........................................................................................................97 7.6 Startup .................................................................................................................................................. 100 7.6.1 Special Considerations of Startup ................................................................................. 100 7.6.2 Advantages and Disadvantages of Startups ............................................................... 101 7.7 Scalup .................................................................................................................................................... 102 7.8 Coworking Space .............................................................................................................................. 104 7.9 What Is Crowdfunding? ................................................................................................................. 105 Chapter 8 Family Businesses .................................................................................................................... 109 8.1 Definition of Family Business ....................................................................................................... 110 8.2 Types of Family Businesses ........................................................................................................... 112 8.3 Advantages and Disadvantages of Family Businesses.......................................................... 113 8.4 Issues In Family Businesses............................................................................................................ 113 8.4.1 Generational Exchange and Succession ...................................................................... 114