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Theoretical and Applied Economics
No. 4 / 2012 (569)

Investment Activities of Businesses and the Use of European Financial Support in the Czech Republic at the Time of Crisis

University of Economics, Prague, Czech Republic
University of Economics, Prague, Czech Republic

Abstract. This article is focused on investment activity during crisis period. It is obvious that investment decreased in time of depression because businesses postponed or reduced their investment. Business units looked for steps which they should have implemented. The most common step was reducing investment. On the other hand they mobilized their internal sources which could be supported by additional money sources such as financial support programmes because crisis period is characteristic of low availability of sources such as bank loans etc. The fifth enlargement of the European Union brought need of new Cohesion Policy which was implemented in the Czech Republic into operational programs which are introduced. The Operational Program Enterprise and Innovation is used for testing a hypothesis if we can trace the impact on applications of financial support according to external change of economic conditions.

Keywords: investment activity; recession period; cohesion policy; operational programs; Czech Republic.

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Marin Dinu

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