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February 4, 2018 2:00 pm | FILED UNDER: business

Small Business Exports on the Rise

By ČTK

Prague, Feb 4 (CTK) – Czech small and mid-sized exporters have been successful in finding new markets in the past few years, data from the Czech Export Bank (CEB) have shown.

 

In 2013, Russia was a major destination, accounting for nearly 40 percent of Czech export that was supported by the bank. In 2017, it was 1 percent of the CEB-financed export partly due to anti-Russian sanctions, said CEB head Karel Bures.

 

In the past three years, Russia’s position was taken over by Slovakia, followed by Indonesia and Azerbaijan.

 

CEB mainly supported business deals in Asia (69 pct) and Latin America (16 pct), which have replaced the previously-dominant Russia.

 

The bank, now focused on small and mid-sized enterprises, financed export to Bahrain, Qatar, Peru, Kyrgyzstan, Lithuania and Armenia for the first time last year. It supported the export of aircraft engines to the Isle of Man, for example.

 

Czech industry has been well established in the Latin American and Asian countries including the CIS (Commonwealth of Independent States) as well as countries in the north of Africa, and so they offer trading opportunities for industrial companies or those operating in the transport sector, the Confederation of Industry has said.

 

“Last year, we organised two missions to Cuba in which more than 60 exporters took part,” said president of the confederation Jaroslav Hanak.

 

“More than 170 entrepreneurs participated in seven missions to Asian countries,” he said. The Czech Republic should continue organising these missions and focus primarily on these states in the future, he added.

 

According to last year’s survey by the Association of Small and Medium-Sized Enterprises, the share of exporters outside the EU keeps rising. These companies are focused on the CIS and the Middle East. A half of domestic exporters supply products to six and more states, with 15 percent to 21 countries. The share of companies exporting to a minimum of 11 countries posted an annual hike of 7 percent.

 

New business deals financed by CEB in 2014-2017 (in pct):

 

Slovakia

30.5

Indonesia

17.6

Azerbaijan

16.6

USA

6.8

Iraq

6.2

Russia

5.7

Brazil

5

Cuba

2.7

Mauritius

2

Isle of Man

1.9

 

Source: CEB

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