Risks of Doing Business in the Czech Republic

Key Business Risks

1. Export Dependence: Heavily reliant on German demand; vulnerable to global downturns.
2. Small Domestic Market: Limits growth for locally focused firms.
3. Bureaucracy: Permits, licenses, approvals can be slow.
4. Labor Shortages: Skilled gaps in IT, engineering.
5. Corruption: Still present in some public sectors.
6. Policy Uncertainty: Sudden regulatory changes possible.
7. Currency Risk: Koruna fluctuations affect international trade.
8. Cyber Threats: High digitalization increases breach risk.
9. Financing Access: SMEs may struggle for capital.
10. Energy Import Dependence: Reliant on Russian energy; supply/price risks.

Mitigation: diversify markets, invest in talent, strengthen compliance, hedge currency, enhance cybersecurity.