The Business Environment in Slovakia from the Point of View of the Death of Enterprises

Abstract

Creating favorable conditions in the business sphere is one of the main priorities of the European Union, while each member country implements the objectives of the EU strategy in its national strategic documents. The goal of this paper is modeling respectively quantifying the effect of the death of business entities in Slovakia in 2019 and 2020 from selected factors using logistic regression. We decided to find out which of the selected factors (legal form of the enterprise; size group according to the average registered number of employees; region; economic activity performed by the enterprise) most influenced the death of enterprises in the period before and during the pandemic, which will allow us to determine the most and the least threatened categories of enterprises. The analysis was based on the business demography database, while the processing itself was carried out using the statistical tool SAS Enterprise Guide 7.1. The results of the analysis during the COVID-19 pandemic showed a significant impact of the factor legal form of the enterprise - mainly in the group of enterprises owned by natural persons, then a statistically significant impact of the factor size group of enterprise with an average registered number of employees 0-1 and finally a significant impact of the factor economic activity of the enterprise, mainly in the field of services. The smallest but statistically significant effect was manifested in the region factor, while the region in the east of Slovakia can be considered the most threatened from the point of view of the demise of enterprises. An interesting fact is that the influence of individual categories of factors on the closure of a enterprises in the case of micro-enterprises with one employee is very similar to the situation throughout Slovakia.