RAJCHLOVÁ, J., BARANYKOVÁ, M., POLÁK, M., BROŽ, Z.: Proposing changes in legislative and institutional conditions for private equity and venture capital fi nancing in the Czech Republic -a comparative study with Poland. Acta univ. agric. et silvic. Mendel. Brun., 2011, LIX, No. 7, pp. 317-324 This paper discusses the conditions of private equity and venture capital fi nancing in the Czech Republic and Poland. Especially the related legislation, taxes and support of this type of fi nancing are discussed in detail. The purpose of this research is to evaluate the conditions, to fi nd factors that have positive infl uence and to formulate recommendations that would improve the conditions for both PE/VC investors and fi rms with new business ideas. Improving the conditions for PE/VC fi nancing helps small businesses get the needed capital that cannot be obtained from banks and other institutions. This form of fi nancing has a proven positive eff ect on whole economy. Identifying and removing obstacles is therefore important and helps the government to promote economic growth.
Operation of a photovoltaic power plant by an individual is a business activity according to a special regulation. For this activity it is necessary to have a “Licence for doing business in energy sectors”, which provides authorisation to do business in this sector and replaces the traditional Trade Licence. The Licence is issued by the Energy Regulatory Office, through which the Organisation Identification Number (Administrative Id. No.) is issued.All these issues are however closely associated with the legislative environment, which is very unclear in the Czech Republic, and it is very difficult to estimate in what direction it will develop. In this connection it is appropriate to present a work definition of the term “legislatively uncertain environment”. The issues connected with these topics can be divided into three areas, namely law, accounting and taxes. This environment is highly unstable for the decision making process of an individual, and it is not easy to determine whether the terms and conditions will remain as they are or if they are changed within several months, not speaking about the fact that the recent periods are characterised by the fact that the law regulations use more and more often the principle of retroactivity, and therefore it is not even clear whether the individual makes a decision in the conditions which are set at present or if he or she is retroactively hit by the changes which may be made during a few months and can have a fundamental impact on the individual concerned.
RAJCHLOVÁ, J., BROŽ , Z., BARANYKOVÁ, M., POLÁK, M.: Private equity and venture capital fi nancing in the Czech Republic and other european countries -development, opportunities and limitations. Acta univ. agric. et silvic. Mendel. Brun., 2011, LIX, No. 7, pp. 307-316 Financing by means of private equity and venture capital (PE/VC) off ers businesses the resources required to fi nance their future growth and bring prospective business plans and innovative ideas to reality. This form of fi nancing is relatively new and even though it off ers clear advantages it is not frequently used in the Czech Republic and other European countries in the CEE region. This paper addresses current and very relevant issues related to this form of fi nancing. The purpose of this research is to identify opportunities and limitations for this type of fi nancing based on benchmarking analysis. This analysis observes the development of PE/VC fi nancing in the Czech Republic and compares it with several other countries in the CEE region. This paper discusses several factors that infl uence the development of PE/VC fi nancing. Several conclusions can be drawn from this research. The Czech Republic is in 10 th place in the utilization of venture capital from the selected 22 countries covered in this research. The time frame for this research is between 2004 and 2010. A er thorough analysis of development and conditions in other countries a list of recommended changes that have proven positive impact on the whole economy is formulated. The relatively low level of utilization of the venture capital in the Czech Republic may be due to several things for example by a lack of knowledge of this form of fi nancing and the inability of the management to formulate a business plan that is interesting for the PE/VC investor. The managers are o en afraid of the administrative complexity and also the investor expects relatively high profi tability of the investment. Another possible limitation is that the public issuing of stocks is used rarely in the Czech Republic. Another cause for the low level of utilization is the absence of public and institutional support for this form of fi nancing. Venture capital has clear and measurable positive impacts on the whole economy and it is therefore important to support and research the use of this method of fi nancing.
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