Management of European Projects by Czech and Slovak Entrepreneurs in Bíle-Biele Karpaty Euroregion

Abstract

IntroductionThe Structural Funds programming period of 2007-2013 presented an enormous chance for entrepreneurs in the new member countries to acquire finance from a variety of schemes funded by the European Union and its member states . In this paper the authors focus on entrepreneurs' ability to successfully manage European Union Cohesion Policy projects in two border regions of Czech and Slovak Republic - Zlinský and Trenciansky Regions, respectively. The focus is on the Convergence objective as both of these regions were below 75% of the Union average in terms of GDP per capita characteristic in the previous and the current programming periods of the Cohesion Policy. The other focal point of this paper stems from the fact that the two mentioned administrative units together form the Euroregion under the name Bile-Biele Karpaty (White Carpathians) and its Joint Programme Document as of 2006 showed the lack of entrepreneurial support as one of the key weaknesses of the region (Region Biele Karpaty, 2006). The Cohesion Policy therefore presents a unique means of rectifying this situation by means of direct supportf for entrepreneurial projects in both regions.The first part of the paper reflects on theoretical knowledge about entrepreneurial support in the European Union in general, followed by the overview of schemes available for Czech and Slovak Republic under the Cohesion Policy. Theoretical part is followed by the methodology in which notes are made on the availability and use of data for the paper and the methods employed for its processing. The third part introduces the results obtained in the researched areas separately, then in comparison of opportunities and how local entrepreneurs seized them to their advantage in both regions. The results part is followed by concluding remarks on both regions.1. Entrepreneurship and its support in the European UnionThe Cohesion Policy is often presented as a key policy of the European Union in terms of regional development. Since its inception in its present form in late 1980s it has certainly gained in available funds and therefore both in importance and political focus. Its main objective has long been reducing the disparities among the Union regions. This goal, however, is often discussed in terms of perceived efficiency. Leonardi (2006) notes it is difficult to separate the influence of the Cohesion Policy from influence of other factors. Some studies though present Cohesion Policy interventions positively as a successful tool for reduction of regional disparities (Esposti & Bussoletti, 2008; Kyriacou & Roca-Sagales, 2012; Ramajo, Marquez, Hewings, & Salinas, 2008; Sosvilla-Rivero, Bajo-Rubio, & Diaz-Roldan, 2006). The opposite side is represented by authors whose studies show lack of convergence among the European regions such as Cuadrado-Roura (2001), Lopez-Bazo et al. (1999), Arbia and Paelinck (2003) or Azomahou et al. (2011).Interestingly, Fotopoulos (2012) speaks about issues of reducing disparities in connection with entrepreneurial activity and notes that heightened entrepreneurial activity contributes to growth process in the economics. The question of entrepreneurial support is a widely discussed topic in relation to development of regions. The importance of entrepreneurship is undisputable and underlined by multitude of authors from early on (see e.g. Malecki, 1994; O'Farrell, 1986). The emphasis, however, lately shifts to specific category of entrepreneurs that is the small and medium ones. These firms are perceived as a driving force of every national economy and a source of an immense creative potential (Majkova, Solik, & Sipko, 2014; Ruda & Svobodova, 2014). Stel et al. (2005), Li et al. (2009), Bosma and Schutjens (2007) all agree on the importance of small and medium entrepreneurs for the growth characteristics of national economics. Sternberg (2012) agrees but raises an alarming issue when stating that subsidies to firms may actually increase interregional disparities based on irregular concentration of the disparities as well as the entrepreneurs. …