The Czech Republic completes another milestone in the implementation of the National Strategy for the Development of the Capital Market in the Czech Republic 2019 – 2023 (here to read more about it). Today, a dedicated communication and information portal about capital market financing possibilities for SMEs in the form of a website kapitalovypruvodce.cz was presented in an on-line conference in the presence of the Minister of Finance JUDr. Alena Schillerová Ph.D. and the European Commission’s Director General for Structural Reform Support (REFORM), Mr. Mario Nava.
A well-developed capital market is an essential mechanism for the efficient functioning of an advanced market economy. It connects household savings with value added enterprises in need of capital. As such, it benefits the country’s economy as a whole and all its participants – households, businesses, and financial intermediaries.
The SMEs in the Czech Republic have a comparatively low knowledge of basic capital market instruments. This constrains their financing choices, it, therefore, indirectly hinders the Czech economy from being more resilient to external shocks and does not allow a faster economic growth as well as creation of high-quality employment opportunities.
To address this issue, the Government of the Czech Republic has put enhanced capital market literacy of SMEs as one of the fundamental objectives of the National Strategy for the Development of the Capital Market in the Czech Republic 2019 – 2023.
The inauguration of the website kapitalovypruvodce.cz at today’s conference comes as a result of the European Commission assistance within the technical support project “Enhancing capital market literacy for SMEs in the Czech Republic” funded by the European Union via the Structural Reform Support Programme.
The website aims to explain to SMEs alternatives to traditional bank loan financing. It provides information about different options for financing SMEs businesses through public or private capital markets and guides SMEs through the practicalities of their use. The website also offers inspiring stories of Czech SMEs that have successfully taped into capital markets, for examples through crowdfunding or other innovative platforms, through private investors or via the START market of the Prague Stock Exchange. The website also features thematic video interviews with capital market experts and provides useful contacts. SMEs will be able to take a quiz to assess their business development needs and identify suitable capital market funding possibilities.
In bringing the website to life, the European Commission’s technical support to the Czech Ministry of Finance complements the whole spectrum of ongoing capital markets reform initiatives resulting from the National Strategy. Czech Republic is on the right path to mobilise its capital markets. The European Commission encourages other Member States to take inspiration from this project.
Here below the link to Czech Ministry of Finance press release:
Source: EU Commission