This publication is the main outcome of the project “Mid-term evaluation of the Czech SME Support Strategy 2021-2027”, undertaken by the OECD Centre for Entrepreneurship, SMEs, Regions and Cities in collaboration with the Czech Ministry of Industry and Trade (MIT) and with financial support from the Reform and Investment Task Force of the European Commission (SG REFORM). The project also led to the development of a detailed Action Plan comprising more than twenty targeted policy actions, delivered to the Czech MIT and SG REFORM.
The project was conducted between July 2024 and July 2025. The methodology combined desk-based analysis with a one-week fact-finding mission, during which the OECD Secretariat conducted structured consultations with government and non-government stakeholders involved in SME policy. The analytical process was complemented by a final technical workshop, which served to validate findings and policy conclusions with the same stakeholders.
The report consists of seven thematic chapters, which closely reflects the areas addressed by the government’s “Strategy to Support Small and Medium-Sized Enterprises in the Czech Republic, 2021-2027”: i) business environment; ii) SME financing; iii) SME internationalisation; iv) SME skills development and entrepreneurship skills; v) SME R&D and innovation; vi) SME digitalisation; vii) the green transition of SMEs. Each chapter follows the same structure and includes: i) a short baseline assessment of SME conditions in Czechia; ii) an in-depth evaluation of recent policy trends; iii) targeted policy recommendations meant to inspire national SME policy making in the short-to-medium term.
The report shows that recent government reforms have significantly simplified administrative and tax procedures in Czechia, notably through digitalisation and the introduction of a flat-tax regime for sole traders. Nonetheless, administrative complexity remains a significant concern for many SMEs. Further reforms, such as streamlined insolvency procedures and an easier VAT registration process, could give an additional boost to the simplification agenda of the government.
The report also underscores that there is scope for improving access to finance for Czech SMEs, both through traditional tools like credit guarantees and stronger development of the domestic VC market, and for increasing the number of Czech SMEs engaged in international markets, such as through the launch of a revamped national supplier development programme.
The report finally recognises that the Czech government has made important advances in the twin transition of SMEs, fostering their digital and green transformation through a suite of mostly EU-funded programmes. In this respect, Czechia’s digital innovation hubs appear to work well, but they will need stable funding to have a long-term impact on the digital competencies of Czech SMEs. “Green” programmes have covered many different areas, including energy efficiency, renewable energy adoption, and the circular economy. Going forward, it will be important to reform the national energy audit system and secure funding for “green” programmes also after the end of the national recovery and resilience fund, which has been the main source of funding.
This report contributes to the Programme of Work and Budget of the OECD Committee on SMEs and Entrepreneurship (CSMEE). It was submitted for comments via written procedure to the OECD CSMEE [CFE/SME(2025)10] on 10 April 2025.