Workforce skills upgrading is key for companies of any size to remain competitive in the face of rapidly evolving technologies. In Czechia, the share of adults participating in training activities is lower than the EU average, which may slow down the adaptation of the labour force to new skills demands, while the share of STEM graduates is slightly higher than the OECD average. One of the main skills policies of the Czech government has involved strengthening the digital skills of workers, notably through different project calls of the national Recovery and Resilience Plan (RRP) and of two different Operational Programmes. Czechia also features a growing offer of micro-credentials, which are short-term courses addressing specific skills needs, while greater efforts are needed to strengthen the awareness of employers about “recognition of prior learning”. With regard to entrepreneurship skills, the national entrepreneurship ecosystem has developed significantly in the last years, although the overall quality of institutions like business incubators and accelerators is heterogeneous. On the other hand, the offer of entrepreneurship education is still at an incipient stage, despite the existence of some good practices at both secondary and tertiary levels.
SME Policy in Czechia
Abstract
Workforce skills upgrading is key for companies, regardless of their size, to stay competitive in the face of rapidly evolving technologies. In Czechia, however, a smaller share of adults than the EU average participate in training activities. This is partly the result of low unemployment, which makes the need for training less immediate, but in the long run it may hinder the adaptation of the labour force to new skills demands. In a similar vein, although the number of Science, Technology, Engineering and Mathematics (STEM) graduates has steadily increased since 2017, the demand for these skills is expected to outpace its supply.
One of the mains skills policy priorities of the Czech government has involved strengthening the digital skills of the workforce. For example, the employment component of the national Recovery and Resilience Plan (RRP) aims to upskill 130 000 people on IT skills and Industry 4.0 skills by the end of 2025. Specific interventions include an e-shop providing workers with access to subsidised training and the programme “NPO-DIGI for Companies”, which directly supports enterprises which wish to invest in the digital training of their workforces. The Operational Programme Employment Plus (OPE+), which is managed by the Ministry of Labour and Social Affairs, also has several calls to upskill workers, including one dedicated to enhancing the entrepreneurial competencies of senior workers.
“Recognition of prior learning” allows individuals to receive a formal accreditation for skills that have been acquired outside traditional educational channels. In doing so, it helps reduce skills mismatches, avoid unnecessary (formal) training, and improve business productivity. In Czechia, although the recognition of prior learning is guaranteed by Law 179/2006, employers are little aware of it, pointing to the importance of more awareness-raising efforts in the future.
Czechia also displays a growing offer of micro-credentials, which are short-term courses to address very specific skills needs. Micro-credentials are especially important at a time when skills demand changes rapidly due to evolving digital technologies and when this often entails the development of new skills in existing jobs rather than the full development of new professional occupations. While the main providers of micro-credentials are generally vocational and technical institutes, some Czech universities have also experimented with this offer, including as a means to attract students into longer education courses.
Czechia’s entrepreneurial ecosystem has evolved rapidly in the last decade. CzechInvest, which is the investment agency of Czechia, but which has increasingly engaged in start-up support, is the main government player in the national entrepreneurship ecosystem, which also includes other institutions like universities and private entities. Nonetheless, the overall quality of the entrepreneurship ecosystem is heterogenous. Half of the existing business incubators/accelerators are not active, and another sizeable share only offers online/remote services.
The offer of entrepreneurship education is at an initial stage in Czechia, although there are some interesting initiatives both at secondary (e.g., “fictitious company” programme) and tertiary levels (e.g., Brno’s Moravian Innovation Centre). Measures to strengthen this offer could include developing entrepreneurship education courses in tertiary institutions that already have an incubator, to ensure progression in the entrepreneurial journey of students, and developing a national entrepreneurship education curriculum to be applied more consistently to entrepreneurship teaching across secondary and tertiary education.
The digital and green transition will have a major impact on the national labour market
The twin transition, green and digital, is expected to have a major impact on labour market needs and skills requirements. Across OECD countries, it is estimated that between 2015 and 2019, on average, 20% of the workforce was already employed in green-task jobs. By contrast, “brown” industries accounted for only 7% of employment, but workers in these sectors face the risk of job loss and prolonged periods of unemployment without supporting employment policies (OECD, 2024[1]).
The twin transition will require important upskilling and reskilling investments for companies to remain competitive and grow. For example, a survey conducted on the impact of Artificial Intelligence (AI) on the workplace shows that 71% of employers in manufacturing across OECD countries have already retrained their workers due to AI (Lane, Williams and Broecke, 2023[2]). In addition, recent studies show that at least 40% of the workforce will need upskilling and reskilling, as rapidly evolving technologies such as generative AI, machine learning, and advanced manufacturing emerge (World Economic Forum, 2023[3]). The skills gap that small and medium enterprises (SMEs) typically experience might also widen, as SME workers are generally less involved in formal and non-formal training activities than those in larger companies. According to the latest available data, adult participation in formal job-related learning is on average 15 percentage points lower in SMEs than in large companies at the EU level (OECD, 2019[4]).
Czechia’s economy has traditionally been manufacturing-based and export-oriented (see also chapter 3), although more recently there have been signs that the services sector, especially the ICT sector, is gaining traction. Both sectors will be heavily impacted by recent digital trends, transforming jobs and skills requirements. Robot intensity in Czechia’s manufacturing industry has increased considerably since 20051, thus boosting demand for digital skills. However, automation does not only concern manufacturing. Estimates by Czech authorities suggest that over the next 30 years automation could affect more than 50% of professional tasks across the entire economy, impacting 3.4 million people at the national level (Ministry of Industry and Trade of Czechia, 2022[5]).
Artificial intelligence will also reinforce the demand for advanced digital and transversal skills. Sectors that use generative AI to improve efficiency are expected to prioritise transversal skills such as creativity, problem solving, and critical thinking, as the capacity to lead and use advanced technologies will depend on human adaptability and oversight (Borgonovi et al., 2023[6]).
The number of adults in training has grown, but greater attention is needed to the development of transversal skills
Against this backdrop, over the last decade, the European Union has seen an upward trend in adult participation in further education. While Czechia initially followed this trend, participation declined between 2017 and 2020 before experiencing a sharp increase and reaching 9.9% in 2023. This is higher than neighbouring countries such as Poland and Germany but still below the EU average (Figure 4.1, Panel A). When looking at training participation by different professional categories, Czechia scores below the EU average across almost all categories, but especially so for managers and professionals, suggesting that more efforts are needed to upskill and reskill these groups (Figure 4.1, Panel B). In this regard, recent data show that continuous vocational training lacks a focus on transversal skills such as problem solving, customer handling, teamwork, and office administration, which are skills especially relevant for professionals and managers2.
Percentage values
Note: For Panel B the classification of occupations is based on the International Standard Classification of Occupations (ISCO) of the International Labour Organisation, Managers and Professional are the most skilled workers. Professionals do not necessarily have a managerial role but distinguish themselves from technicians or clerical workers by their high level of competencies. Professionals include engineers, chemists, mathematicians, medical doctors, teaching professionals, business, and administration professionals.
Source: Panel A Eurostat 2023 based on EU Labour force Survey Data; Panel B Eurostat 2022 based on Continuous Vocational Training Survey (CVTS).
With respect to digital skills, in 2023, about one-quarter of Czech businesses (23%) trained their staff in ICT skills, slightly better than the EU average (22%) and neighbouring countries like Hungary and Slovakia (18% and 15%), but worse than Poland (25%) (Eurostat, 2023[7]) (Figure 4.2, Panel A). SMEs are less likely to provide ICT training to their workers: in Czechia, only 16% of SMEs offered ICT-relevant training to their employees, slightly below the EU average (18%), but above Slovakia and Hungary (Figure 4.2, Panel B).
Percentage values
Source: Eurostat 2022
The number of graduates is on the rise, including in STEM subjects, but this might not be enough to match expected future demand
Czechia is home to 26 public universities. The country has a growing share of bachelor’s and master’s graduates in the field of ICT, accounting for 5.1% of total graduates in 2021. The number of graduates in Science, Technology, Engineering and Mathematics (STEM) has also steadily increased since 2017, reaching 25% of the total in 2021, slightly above the OECD average of 23.7% (OECD, 2024[8]).
Despite the relatively high number of graduates in STEM disciplines, there are signs that the offer of high-level qualifications must expand to prevent skills gaps in the future (Cedefop, 2023[9]). In 2022, 34.5% of Czech adults (aged 25-34) had completed tertiary education, which is one of the lowest rates in the EU. Furthermore, the share of adults (aged 25-64) with tertiary education was only 27% in 2023, lower than other Central and Eastern European (CEE) countries and the OECD average (41%) (OECD, 2023[10]).
An amendment to the Employment Act has introduced more flexible working arrangements that should facilitate the uptake of vocational training
The Employment Act, which dates back to 1964, has recently been revised to introduce more flexible work arrangements. The amendment, effective as of October 2023, is the result of a year-long intensive dialogue with social partners and aims to introduce more flexible contractual arrangements, clarify rules for remote working, facilitate part-time employment, and support the re-integration of the inactive and unemployed into the labour market3. Most relevant for this chapter, this amendment makes it easier for workers to engage in vocational training and for companies to attract and hire skilled talent. For example, the facilitation of part-time employment allows workers to have more time to enrol in vocational training while maintaining their current occupation. Similarly, the amendment will make it easier for companies to recruit non-EU foreign workers.
Going forward, a further improvement would consist in a clear reference to lifelong learning as a career development objective, with the aim of ensuring that flexible work arrangements go hand in hand with training objectives (Chamber of Commerce of Czechia, 2024[11]).
Digital training interfaces provide simplified access to training
As part of the Recovery and Resilience Plan (RRP), the Ministry of Labour and Social Affairs has set up an e-shop providing workers with access to subsidised training courses. Any user can browse, select and enrol in courses via this e-shop. Courses fall under two categories: “retraining” in a specific technical field and digital education. Courses are delivered online, in person or in hybrid mode by recognised training institutions. Initially only available to the unemployed, these courses have more recently been made open also to employed people, who can spend up to CZK 50 000 (i.e., about EUR 2 000) in training courses within a three-year period. All applications are submitted online and are reviewed by the National Labour Office. As of July 2024, the e-shop had already supported nearly 19 000 people, of whom 11 000 were employees and 8 000 unemployed, and had involved around 500 learning institutions4.
The training e-shop is just one element of a broader vocational training initiative, implemented under the Employment component of the RRP, which aims to upskill 130 000 learners in IT or Industry 4.0 skills by the end of 2025. This component also includes a digital education initiative – the “NPO-DIGI for Companies” – which is also managed by the Czech National Labour Office, and which allows companies to retrain their employees with digital skills. The programme offers grants to companies to cover either the direct costs of a training course or a wage subsidy for the hours that employees spend attending the course.
Both initiatives show the commitment of the Czech government to meet the upskilling and reskilling objectives outlined in the National SME Support strategy.
The Operational Programme “Employment Plus” has several calls to for the skills upgrading of the workforce
The Operational Programme Employment Plus (2021-2027) (OPE+) is the main government programme for employment and social inclusion. Co-ordinated by the Ministry of Labour and Social Affairs and funded by the European Social Fund Plus, it builds upon the achievements of the previous Operational Programme Employment (2014-2020). OPE+ aims to enhance employment opportunities, improve workforce adaptability, promote gender equality, and foster social inclusion. Unlike the Operational Programme Technology and Application for Competitiveness (OP TAC), managed by the Ministry of Industry and Trade (MIT), which focuses on helping firms to become more competitive through different means, including workforce training, OPE+ focuses on retraining workers and preparing them for the future of work.
A strong emphasis in OPE+ is placed on increasing participation in further education among senior workers (55-64 years old) and low-skilled adults, as these groups exhibit lower enrolment rates in further education. Targeted measures also include retraining and counselling workers in declining industries or in companies that are adopting low-carbon business models. To achieve these priorities, OPE+ has launched calls to finance several training activities, including courses on soft skills, management and languages, as well as the acquisition of new competences relevant for the green transition and Industry 4.0.
By way of example, in March 2023, a project call of OPE+ aimed to support employers in enhancing the business competencies of their employees, with a particular focus on senior workers (aged 55+). Eligible applicants included business enterprises, state-owned enterprises and self-employed individuals, while supported activities included courses in the areas of soft and managerial skills and language training. To participate in this call, employers were asked to submit their application electronically, and were required to specify target values for indicators, such as the total number of participants and the number of participants aged 55 and over. The project call closed in June 2023, but each selected project can run until May 2026 and receive funding between CZK 1-6 million.
This initiative stands out from other OPE+ calls for its focus on SMEs. Fostering soft skills (e.g., critical thinking, problem solving and adaptability) and managerial skills can help workers, especially senior ones, to navigate changes in the labour market and transition to new jobs and responsibilities. As such, this call responded directly to the objective of the national SME Support Strategy of “ensuring further education, especially in area of key skills”. It also supported the objective of “increasing the level of digital skills in the business sector”, as soft and managerial skills can help businesses adapt to new market conditions and implement new disruptive digital technologies more swiftly.
Another call of OPE+, launched in July 2023, has supported employees at risk of redundancy, including in companies transitioning to lower-carbon business models. More specifically, this call provided the National Labour Office with resources to design and implement programmes supporting employees in companies going through restructuring. Benefitting from a financial allocation of CZK 300 million (EUR 11.9 million), the National Labour Office designed different activities such as retraining opportunities for employees facing the loss of employment, the delivery of professional qualification exams, career counselling and job placement services. The support also included wage subsidies for employers during employee participation in training. This call closed in November 2025, with projects required to be completed by December 2028.
By targeting companies in sectors in transition, this initiative stands out as one of the few Czech government programmes aiming to prepare workers who might be at risk of losing their jobs because of external shocks. Similar measures can be found in other countries such as Portugal with “Qualifica Industria” (Qualify Industry), a training programme launched in September 2023 for industrial companies facing a decrease in production due to unexpected market conditions. However, the Czech scheme targets directly workers, not companies, and provides additional services such as career counselling or direct job placement of workers.
As of end-2024, as these calls were still open, no evaluation had been undertaken to assess the uptake or the impact of these programmes. However, to obtain feedback on the OPE+ calls, the Ministry of Labour and Social Affairs undertook a survey at the end of 2023. The survey revealed that 85% of respondents were satisfied with the management of the calls, with 25% fully satisfied and 60% rather satisfied. However, 27% found the administrative burden heavier than expected, particularly new applicants. Furthermore, 23% of respondents reported difficulties with the software used for application. While 90% of successful applicants found the evaluation of their application justified, only 48% of unsuccessful applicants agreed. Satisfaction with transparency of the selection process was expectedly higher among successful applicants (92%) than among unsuccessful ones (50%). Furthermore, most respondents reported that the length of the evaluation process was in line with their expectations, and many were satisfied with the support offered by the contact point of the Ministry of Labour and Social Affairs.
There are some government initiatives to improve the quality of teaching and to connect schools to companies
In line with the National SME Support Strategy, Czech schools have been provided with modern IT equipment (e.g., new computers, interactive whiteboards, etc.) enabling more efficient and personalised teaching and learning experiences. For instance, the integration of videos, graphics, and interactive simulations offers different ways of presenting information, making complex topics easier to understand and allowing for more participatory approaches to learning, which can in turn enhance key skills such as problem solving, critical thinking and communication. These reforms are a step in the right direction towards training the workforce of the future5.
Furthermore, the Operational Programme “Johannes Amos Comenius” (JAC), managed by the Ministry of Education, actively supports collaboration between educational institutions and employers. This is evident in two calls targeting primary and secondary schools, with a combined budget of CZK 11 billion. In primary schools, the focus is on career counselling. In secondary schools, including vocational schools, the initiative extends to both career counselling and fostering connections between students and companies, including SMEs. The first two calls were launched in 2022, and two follow-up calls in 2024. For the call connecting secondary schools to companies, activities include internships, company tours, as well as support for the creation of “fictitious companies” (i.e., teaching pupils on how to create a business plan and produce a tangible product or services)6.
This last programme is especially relevant. Connecting students in secondary and vocational education to companies provides valuable real-world experience, helping students apply classroom knowledge and develop essential skills. It also enhances their career awareness and employability by exposing them to various industries and creating networking opportunities. Finally, engaging high school pupils in entrepreneurial projects, even if just for pedagogical purposes, can help foster a new generation of entrepreneurs and workers who have transversal skills, such as problem solving, creativity and critical thinking (see section below). For companies, these initiatives provide access to a future pool of talent, strengthen the company's reputation within the community, and can lead to long-term partnerships with educational institutions. As of mid-2024, a large number of SMEs had enrolled in the OP JAC call.
The Czech law formally recognises prior learning, but awareness among employers is still low
The recognition of prior learning allows individuals to gain formal credit (qualifications and certifications) for skills and knowledge that they have already acquired through work or other life experiences outside traditional education, thus reducing the time and cost needed to achieve qualifications (Meghnagi and Tuccio, 2022[12]). The recognition of prior learning acknowledges that individuals can acquire skills through work, volunteering, workshops and other means, making learning more accessible and socially inclusive. Recognition of prior learning is especially beneficial for SMEs, as it enables companies to quickly identify and utilise the available skills of their workers, thus reducing the need for extensive training.
In Czechia, every citizen has the right to have their skills and knowledge assessed under Act Number 179 of 2006, which governs the verification and recognition of lifelong learning outcomes. This law covers 1 451 professional qualifications, and a successful assessments result in an official certificate. To date, more than 300 000 individuals in Czechia have obtained a certification through this process, and a web portal has been created to validate non-formal learning in different fields.
Nonetheless, the awareness of employers of this law is still low and could be strengthened, with a view to having the skills of SME workers better recognised in their current employment and to reducing skills mismatches not only at the firm level, but also in the wider labour market.
Micro-credentials, currently being developed, are an important short-term solution for the rapid development of practical skills
Another important development in Czechia concerns the delivery of practice-oriented micro-credentials, a trend that has also gained traction in other OECD countries. In Czechia, supported by the national RRP, twenty-six universities, including prestigious institutions such as the Charles University in Prague, have introduced micro-credential programmes. The business community is generally supportive of this development, as these certificates equip students and workers with business-relevant skills in a relatively short period of time. For both employers and workers who do not have time to engage in long learning activities, a short programme that provides valuable skills is an asset for professional mobility and development7.
While companies are generally supportive, universities are often less prepared to offering micro-credentials. A change in this direction often requires a certain degree of adaptability, including the training of faculty members in business-relevant topics and in the digital infrastructure through which these courses are typically delivered. Many universities struggle to adapt to this new type of training, also due to concerns about favouring vocational training over traditional education and penalising disciplines that foster critical thinking but have little immediate market value (Varadarajan, Koh and Daniel, 2023[13]). Furthermore, in this specific area, universities often face steep competition from other organisations, such as community colleges or even employers (Cathles and Navarro, 2019[14]) (Ministry of Industry and Trade of Czechia, 2022[5]). This has led some universities to use micro-credentials as a hook to attract people into enrolling into more traditional education programmes.
CzechInvest is the main government player in the field of business incubation and acceleration support
Czechia is home to a dynamic and growing start-up ecosystem, with several hubs across the country. (Keiretsu Forum, 2020[15]) (Atomico, Google for Start-ups, 2022[16]).8 In terms of government support, CzechInvest, the national investment agency, has progressively become the main government player for entrepreneurship development. Although the original mission of the agency was to attract FDI, it has gradually diversified its activities to also serve the local entrepreneurship ecosystem. Leveraging its expertise on foreign trade, CzechInvest’s first programme for start-ups (i.e., the “CzechAccelerator”), w launched in 2011, aimed to help young ventures to grow and enter foreign markets through connections with some of the top global business accelerators. The programme also helped start-ups to meet foreign mentors and to participate in trade fairs and conferences. In 2016, CzechInvest launched a follow-up project called “Startup Support”, along similar lines to the CzechAccelerator. As of mid-2024, 395 start-ups had received support from CzechInvest through this programme, and 5 new start-ups undertake internationalisation activities every month.
Beyond helping companies to internationalise, CzechInvest supports start-up development through business incubation services in strategic sectors identified by the National Research and Innovation Strategy for Smart Specialisation of Czechia 2021–2027 (hereafter the “RIS3 strategy”). These include mobility innovation, creative industries, space, and cutting-edge digital fields such as advanced technology and materials, eco-technology, artificial intelligence, and “tech4life” (technology to improve quality of life). Funded by the Ministry of Industry and Trade, the “Technology Incubation” programme has a duration of two years and provides direct funding to selected technology start-ups (up to CZK 4.5 million, i.e., EUR 180 000 euros). Indirect (conditional) funding of up to CZK 500 000 (i.e., EUR 20 000) is also provided for advisory services (consultation with business and technology experts), as well as workshops, seminars, and networking events to connect start-ups to potential financiers.
Many other institutions, including universities, are actively involved in the entrepreneurial ecosystem
Besides the accelerators and incubators of CzechInvest, other innovation infrastructures (accelerators, incubators, co-working spaces, science and technology parks, digital innovation hubs) have developed over the last years with the support of EU and national funding. An online survey covering the period 2019-2020, with 150 responding start-ups, found that 66% of them had participated in an acceleration programme, almost twice the proportion in the 2017-2018 period (Keiretsu Forum, 2020[15]).
In particular, Czech universities host accelerators and incubators that are open to students and local start-ups. For example, the Technical University of Ostrava hosts one of the most important incubation and acceleration programme in the Moravian-Silesian region, “the Green Light” programme, which was established in 2014 and is open to all students and entrepreneurs from the region. It includes the “start track” for business ideation and the “accelerator track” for business scale-up. Both tracks include consultations, mentoring and networking events, but the accelerator offers more advanced workshops teaching entrepreneurs about marketing, finance, business plan and legal matters, as well as networking events with investors.
The Czech Technical University in Prague also set up an incubator programme in 2020, with the support of the Ministry of Education, Youth and Sports. The incubator, called “InQbay”, is open to students, PhD candidates, entrepreneurs and university employees. Its support includes counselling, mentoring, coaching and expert workshops, mostly aimed at the development of soft skills such as critical thinking and problem solving.
These two programmes are aligned with best practices in terms of incubations and acceleration support. They are not only open to university students and faculty, but also to surrounding start-ups, and are based on a competitive process which assesses the business model and market prospects of the supported entrepreneurs. One possible improvement, however, concerns the accelerator track of the Green Light programme, which does not have a sunset clause for participants – participants can attend the accelerator, within the limit of once a week, for as long as they want – whereas such clauses are typically important to encourage companies to find external investors and solutions to grow more quickly and to leave the comfort zone of government-supported services.
The quality of incubation and acceleration services is quite heterogeneous
A recent mapping of innovation infrastructures in Czechia, undertaken as a guiding tool to support the implementation of the national RIS3 strategy, revealed some weaknesses in the existing incubator and accelerator support system (Samek, 2022[17]). In particular, it found that while there were around 350 of these entities in Czechia in 2022, half of which public and the other half privately funded, only half of the total was really active. Furthermore, almost a quarter of the active incubators were virtual, providing only remote services and mentoring, while many other non-virtual incubators only provided basic infrastructure (e.g., office space), lacking more advanced technological infrastructure or training services such as open-access workshops. Finally, only few offered tax or accounting advice, which are also important in the stage of business creation and development.
The provision of entrepreneurship education could be further expanded
Beyond entrepreneurship support through business incubation and acceleration services, entrepreneurial skills and attitudes can also be taught and learned. Entrepreneurial skills not only empower individuals to start their own businesses but also enhance their leadership, creativity, critical thinking, and risk tolerance. These soft skills are often referred to as the “entrepreneurial mindset” and can be useful in many different work environments beyond entrepreneurship (Bacigalupo et al., 2016[18]).
As a result, many countries have introduced entrepreneurship teaching activities, mainly at the tertiary level of education targeting students from different academic disciplines. For example, in Sweden, the University of Linkoping has a dedicated course on entrepreneurship for PhD students (“Entrepreneurship in Theory and Practice”) that supports students in the development of business ideas linked to their research programme. The programme also includes coaching and networking activities, has led to the creation of over 20 start-ups since 2006, and has attracted CZK 15 million in capital (Klofsten, Jones-Evans and Pereira, 2020[19]) (OECD/IDB, 2022[20]).
In Czechia, the tertiary education system offers entrepreneurship education, but the curriculum could be further expanded. One of the most noteworthy initiatives is the University of Ostrava’s summer school of entrepreneurship education (“Entrepreneurship for All”), which is a three-week programme to help students launch their start-ups and includes courses on creativity and business creation, as well as field visits to local start-ups. In addition, the JIC Innovation Centre in Brno, in partnership with three local universities, offers semestral courses for undergraduates on entrepreneurship and business plan competitions to hone the entrepreneurial abilities of students. JIC has also created a PhD academy to bridge the gap between research and the market, helping students to connect their research to market needs.
While these examples are in line with good practices at the international level, more could be done to support the development of entrepreneurship education in Czechia, especially at the tertiary level. For example, offering entrepreneurship education in universities where there is already an incubator/accelerator could ease the emergence of a strong entrepreneurial pipeline. Memorial University in Newfoundland & Labrador, Canada, offers an example of this “interconnected approach”. This university offers entrepreneurship teaching to bachelor’s and master’s students and has established entrepreneurship centres, incubators and accelerators. All these institutions are interconnected, meaning that students who follow courses on entrepreneurship can eventually join one of the start-up activities to continue their entrepreneurial journey (OECD, 2023[21]).
A more ambitious option would involve launching a national entrepreneurship education programme, which would entail the development of a national curriculum for entrepreneurship education. By embedding entrepreneurship education more systematically at a national level, governments can ensure consistent exposure to essential skills such as creativity, critical thinking, problem solving, risk taking, and financial literacy from an early age, all of which are key skills regardless of the future careers of pupils and students. For example, Finland integrates entrepreneurship education across all levels of education, from primary to tertiary level. The national core curriculum emphasises entrepreneurial learning, project-based learning, and co-operation with local businesses.
Since 2020, the European Commission has put forward a series of policy initiatives to guide member states and mobilise private-sector support for skills development, including for SMEs. The SME Strategy for a Sustainable and Digital Europe recognises the essential role of SMEs for EU competitiveness, noting that in 2020 a quarter of them reported struggling with the availability of skilled staff and experienced managers (European Commission, 2020[22]). Accordingly, one of the three pillars of the Strategy focuses on “building capacity” in SMEs to help them navigate the green and digital transition.
This pillar is implemented through the Enterprise Europe Network (EEN) and a network of European Digital Innovation Hubs (EDIHs). In Czechia, the Technology Centre of Prague, an association of public research institutes, co-ordinates the national EEN activities in collaboration with regional partners. The network, co-funded by the EU and the Czech Ministry of Industry and Trade, provides advisory services on management improvement, intellectual property rights and broader innovation capacity-building, including advice on marketing technologies and accessing European funding programmes. The European SME Strategy has also led to the creation of a network of 240 EIDHs, with hubs in every region of Europe. Six of these hubs have been set-up in Czechia, each with a different focus (see chapter 6 of this report for more details).
In July 2020, the European Commission launched the New European Skills Agenda (2020-2025), which set objectives for upskilling and reskilling to be achieved by 2025 and a 12-point action plan calling on Members States, companies and social partners to invest in skills development. The agenda aims to increase adult participation in learning to at least half of the EU population by 2025, with a particular focus on adults with low qualifications. It places special emphasis on basic digital skills, with a target of 70% of the EU adult population equipped with such skills and highlights the importance of green skills. In line with the Skills Agenda, the Council of the European Union adopted in 2022 two recommendations to strengthen lifelong learning: i) on individual learning accounts, encouraging Member States to set up accounts enabling easier access to training; ii) on a European approach to micro-credentials, paving the way for the expansion of short, tailored learning experiences that can be certified and recognised (Council of the European Union, 2022[23]) (Council of the European Union, 2022[24]).
Czechia’s SME Strategy is broadly aligned with this legal framework, particularly through its objective of “ensuring further education, especially in areas of key skills”. In particular, the recommendations of the EU Council have been implemented in the national context through a series of concrete measures (e.g., training e-shop and increased offer of micro-credentials) that have been discussed earlier in this chapter.
Nonetheless, a few measures could still be implemented to further align Czech policies with EU guidelines on skills development. For example, the European Skills Agenda emphasises the importance of creating entrepreneurial skills hubs. However, despite a growing incubation and acceleration ecosystem, entrepreneurship education in higher education remains limited. In addition, Czechia could further strengthen policies to support skills development for the green transition, in line with the European Skills Agenda and the European Green Deal.
Czechia’s SME Support Strategy identifies vocational education and training as a strategic priority. Accordingly, skills development programmes have been introduced under the National Recovery Plan, the Operational Programme Employment Plus (OPE +), and the Operational Programme Technology and Application for Competitiveness (OP TAC). While a few of these initiatives specifically target SMEs, such as the OPE+ call to improve business competences within SMEs, most are aimed at upskilling the workforce in general.
Although there has been a strong uptake of some of these programmes – e.g., the e-shop launched by the Ministry of Labour and Social Affairs has attracted over 18 000 users in its first months of operation – further efforts are required to boost participation in training, notably through more readily available information on the types of training, funding mechanisms, and programme conditions. In addition, the scope of training topics could be broadened to include more courses on entrepreneurship skills and green skills. In the area of entrepreneurship education, some promising initiatives have become to emerge, but the offer of entrepreneurship education could become more systemic.
Specific policy recommendations to strengthen workforce skills in Czech SMEs will include:
Increasing awareness among employers of the system of recognition of prior learning (learning acquired through professional experience or in a non-academic environment), which has been in place in Czechia since 2006, as an important channel to reduce skills mismatches at the firm level and in the wider labour market.
Enhancing the provision of entrepreneurship education, for example by promoting it further in higher education institutions where there is already an incubator or, more ambitiously, by launching a national entrepreneurship education programme involving the development of a national curriculum.
Expanding the provision of micro-credentials, especially in areas such as green and digital skills where demand from employers evolves rapidly.
References
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[23] Council of the European Union (2022), Council Recommendation of 16 June 2022 on a European approach to micro-credentials for lifelong learning and employability, https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32022H0627(02).
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← 1. Robot intensity is defined as the share of the value of industrial robot stocks over manufacturing value added.
← 2. See more data at: “Main skills targeted by CVT courses by type of skill and size class - % of enterprises providing CVT courses”, https://ec.europa.eu/eurostat/databrowser/view/trng_cvt_29s__custom_12409997/bookmark/table?lang=en&bookmarkId=991dade6-38ff-4cec-a271-f234c33b8119&c=1722423042116.
← 3. Further information on the Amendment to the Employment Law can be found here: https://www.havelpartners.com/amendment-to-the-labour-code-all-that-you-need-to-know-in-a-nutshell/ & http://www.czechcompete.cz/good-governance/legal-reform-and-transparency/amendment-to-the-employment-act-overview-of-new-provisions-applicable-from-july-2024
← 4. Further information at: https://www.mpsv.cz/web/cz/jsem-v-kurzu
← 5. The main player in this area is the Ministry of Regional Development. Further information at: https://irop.gov.cz/getmedia/79d931b4-d997-4ce4-a810-994a97296bff/IROP_Summary-for-the-Public2020.pdf.aspx?ext=.pdf
← 6. A similar initiative was also funded through the Operational Programme “Entrepreneurship and Innovation for Competitiveness” (OP EIC), which was the antecedent of the OP TAC of the Ministry of Industry and Trade, covering the programming period 2014-2020.
← 7. For further information on micro-credentials, see: https://www.unesco.org/en/articles/micro-credentials-important-part-bigger-ecosystem
← 8. In this report, a start-up is defined as a “company that offers unique, scalable solutions, ideally transforming people’s lives.” Given the broad nature of this definition, many businesses could potentially fit within it. To address this ambiguity, the authors of the report surveyed entrepreneurs, asking whether they considered their enterprise a start-up. They also delved into the reasons behind their choice of this label over alternative descriptions such as “tradesperson” or “entrepreneur.”