Regional Business Environment and Business Behaviour of SME's in Moravian-Silesian Region

A country and its entrepreneurial tradition may well identify specific factors, which have an influence on public policy success. But not only have those factor had an influence on business behaviour. The main goal of the paper is to reflect on the challenging economic environment. Many of the trends found were less than positive, although there were some new positive trends that could be identified as a source of sustainability in the area of the connection between the sector of small and medium sized enterprises and the local entrepreneurship environment They also try to encourage entrepreneurs by promoting a positive image of entrepreneurs or by way of an appropriate business education system, Moreover, the frequency of co-operational activities with local government was investigated. Questionnaire-based research was undertaken within 194 organizations of various legal forms operating in the area of the Moravian-Silesian Region. The main factors, which had an influence on their current business stage (49.5% in the growth stage, 9.8% in stagnation, 31.96% in decline and the other 0.52% in crisis), were the locality in the region, the quality of the labour force, cooperation with local public bodies and the business relationships between suppliers. Finally, we have defined three groups of entrepreneurs, based on their satisfaction and sensitiveness to regional business environment