Tuesday, 14 October 2025
Small companies in the Czech Republic spend the equivalent of tens of billions of crowns each year on paperwork and compliance, according to economists and business groups calling for faster digital reforms. The figure, estimated at around CZK 41 billion annually, reflects time and resources that could otherwise be used to expand operations, hire staff, or invest in innovation.
The new estimate was presented at the launch of the second “Big Week of Small Firms”, a nationwide campaign highlighting the role of small enterprises in the Czech economy. Economists say that small companies, particularly those with fewer than 50 employees, face a disproportionate burden because they often cannot afford dedicated administrative staff. Routine tasks such as employee reporting, waste management documentation, and statistical filings consume close to 70 million hours of work per year.
Dominik Stroukal, an economist and member of the government’s National Economic Council, said that bureaucracy remains one of the largest hidden costs of doing business in the country. He pointed to slow progress in digitalisation as a major reason why entrepreneurs still spend so much time navigating regulations and filing documents.
Business representatives argue that complex procedures are not the only problem. Access to financing also remains difficult for smaller firms, which often struggle to meet the risk standards of commercial banks. Josef Jaroš, head of the Association of Small and Medium-Sized Enterprises and Crafts, said that more targeted state programmes are needed to help companies invest and modernise.
A recent survey by the Czech Chamber of Commerce suggests that bureaucracy, rising labour costs, and shortages of skilled workers remain the top concerns for Czech businesses heading into 2026. The study shows that while some firms see modest improvements compared to last year, administrative obligations continue to weigh heavily on business confidence.
The number of official obligations for entrepreneurs has continued to rise, reaching nearly 1,900 in 2024, according to the Ministry of Industry and Trade. Although about three-quarters of these duties can now be fulfilled online, many small firms say the systems remain fragmented and confusing.
Economists and policy experts have repeatedly called for a single, unified digital platform for businesses to handle taxes, permits, and employment reporting in one place — a model already implemented in several EU countries. The OECD has also urged the Czech Republic to reduce the regulatory load on small firms and simplify the procedures that discourage new business creation.
The “Big Week of Small Firms,” supported by Mastercard and the DoToho! entrepreneur programme, aims to draw attention to these challenges through open days, workshops, and mentoring sessions held across the country. Organisers say that around 1,000 companies are taking part this year, up from 600 in the first edition.
The full study detailing the estimated cost of bureaucracy to small firms is expected to be presented later this week at a roundtable discussion with government officials and representatives of the business community.
Source: CTK
