The Czech government had turned its back on small- and medium-sized enterprises (SMEs). The sector not only faces increased foreign competition, high taxation and increased red tape but also has been hurt by fiscal-reform laws intended to bring the country into compliance with the European Union.
The biggest problem small-business owners say, is the new laws that have increased the amount small-business owners must pay in mandatory monthly health and social security taxes to more than Kc 3,000 (US$111) per employee.
