Small and Medium Enterprises

Syllabus

Thematic definition of lectures: 1. Understanding and importance of SMEs Characteristics of SMEs - quantitative and qualitative definition of SMEs with emphasis on the division of enterprises according to applicable EU legislation. The role and social, economic and political functions of SMEs in the national economy. The share of SMEs in the macroeconomic indicators of the Slovak Republic and its development. Specific forms of enterpreneurship as part of SMEs. (freelancers – self-employed farmers). Advantages and disadvantages of doing business in SMEs compared to large companies. External and internal barriers to SME development. Creating a suitable environment for SMEs by the state and the EU. 2. Establishment of the company and implentation of its activities in SMEs Sequence of steps for the establishment and creation of SMEs. Definition and tasks business plan resulting from the corporate decision-making process. Identification of business plan beneficiaries. Proposal of a business plan comprehensive structure and documents forming part of it. Start up plan - business concept as a specific kind of a business plan which is prepared before starting a business. Characteristics and creation of start up budget. Specifics of marketing activities in SMEs. Marketing planning and marketing mix. Business activities. Cooperation of companies, possibilities of creating partnerships and business networks. 3. Personnel activities and employee remuneration Organization of personnel work. Employment of specific groups of employees. The system of remuneration of employees in the company. Basic categories of employee remuneration. Wage conditions and wage benefits. Income from dependent activities, which are subject to income tax. Characteristics and features of income from dependent activity which are not subject to income taxIncome from dependent activities, which are not subject to income tax and the income exempt from the tax. Taxation of employee income - the method of taxation of income from a dependent activity by advance payments and the specifics of taxation of income from dependent work. Annual settlement of advances on income tax from dependent activities. 4. Taxation income of natural persons Subject of the tax of a natural persons. Exemption from income tax. Division of taxable income into active and passive. Taxation of income from profit sharing. Income and expenses from business activities - either as a business entity or a sole proprietor - real evidence based incurred expenses, and application of flat-rate expenses. Taxable base of income tax. Tax rate for a NP. Quarterly and monthly advance tax pre-payments. 5. Social and health insurance. Characteristics of the employee and employer contribution burden, the burden of contributions from service contracts and temporary work of students, and the burden of contributions for entrepreneurs. Social and health insurance for self-employed persons (Sole proprietorship): contribution duty for self-employed persons (Sole proprietorship), determination of base for premium payments, determination of the amount and advance payments for insurance. Contribution duty for newly established and business performing sole proprietorship. Annual premium settlement health insurance. Quantification of the amount of the employer's contribution obligations and their identification in the company's accounting. 6. Corporate Income Tax Legal persons subject to corporate income tax according to Act no. 595/2003 on income tax. Determining the tax base or tax loss. Scheme for calculating the corporate income tax base. Definition of a subject of the tax and income exempt from income tax. Characteristics od tax expenses, limited tax expenses, tax expenses, which the ITA recognizes only after payment and nondeductible items in the tax return - nondeductible expenses. Tax rate from the corporate tax base. Advance tax payments. Tax loss deduction. Remittance of a portion of the corporate income tax paid. Profit share taxation. 7. Family businesses Definition of the term family business and characteristics of family businesses. Classification of family businesses - forms and types. Cultural patterns and developmental stages of family businesses. Peculiarities of family business management. Specifics of family firms. Ways of resolving conflicts in family business. Advantages and disadvantages of family business. Legislative barriers and succession problems in family businesses. Family businesses in EU. Current state of family business in the Slovak Republic. 8. Social businesses Characteristics of social entrepreneurship and social enterprises as key players of the social economy. Definition and goals of social enterprises. Types of social enterprises. The concept of a hybrid organization, sheltered workshops and sheltered workplaces. Current legislation on social entrepreneurship in the Slovak Republic. Registered social enterprises and their types. 9. Local taxes and fees Current local taxes in the Slovak Republic according to valid legislation: local taxes and fees for municipal waste and small construction waste, tax for a dog, for the use of public space, for accommodation, for vending machines, for non-winning slot machines, for an entry and parking of a vehicle in the historical part of the city and for nuclear equipment. Determination of the subject of the tax, tax base and the tax liability and tax assessment Characteristics of the real estate tax, determination of tax base, determination of tax-exempt real estates. 10. Indirect taxes Definition of indirect taxes according to the valid legislative - definition of added value and definition of turnover. Determination of the taxable person - VAT payer, subject of the tax and tax base. Determination of goods and services to which the basic and reduced tax rate applies. Procedure for registration as a VAT payer. VAT payer registration procedure. Conditions for mandatory VAT registration. Conditions and motives for voluntary VAT registration. Conditions for claiming the excess VAT deduction/ tax refund. Filing a tax return for VAT. 11. Business environment and business regulation. Definition of business environment. Introduction of the basic theoretical bases for the formation of business conditions. Business regulation and determining the information and regulatory obligations of business entities. Characteristics of individual methods of evaluating the quality of the business environment - factor, expert, mixed and economic-mathematical. Measuring the quality of the business environment using various indexes. Characteristics of the most famous international institutions identifying the conditions in which business takes place and the Slovak PAS (Business Alliance of Slovakia). Current state of the business environment in the Slovak Republic. 12. SME Support within the Slovak Republic Characteristics of the SME national level support, which is implemented through state / public aid (individual ministries, SBA, SARIO, SIEA, CVTI SR, PPA, SZRB) and private aid (Association of Slovak Entrepreneurs, SŽZ, SOPK) on the basis of legislation consisting of two initiatives: the Small Business Act and law on the support of small and medium-sized enterprises, 13. Support for SMEs in the EU environment EU SME policy objectives. Institutional framework for EU support. Categories of EU support directly in the form of grants, loans and guarantees or through programs managed at national or regional level. Characteristics of individual EU programs, institutions and financial instruments to support SMEs (2- COSME, EU Programs and funds, European Investment bank, European Investment Fund, The CREATIVE EUROPE Program and the EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT (EBRD) and the JEREMIE Initiative. Thematic definition of exercises: 1. Establishment and foundation of the enterprise Solving practical examples of the establishment and foundation of a enterprise. Characteristics of life and limited liability companies as the most common legal forms of business in the field of SMEs. Comparison of advantages and disadvantages of these forms of business, especially in terms of administrative and financial burden in their establishment. Establishment of an imaginary enterprise in the form of life and a limited liability company in compliance with applicable legislative procedures. 2. Business plan and funding budget A comprehensive example for drawing up a founding budget. Calculations of the annual budget of operating costs, working capital needs, total starting capital needs, foreign capital needs, interest rates, provided that the lack of equity will be covered by a bank loan. The draft annual budget of costs, revenues, and determination of the econdomic result. Calculation of profit after tax and determination of return on equity and total invested capital. Assessment of the effectiveness of the implementation of the business plan. 3. Remuneration of employees and taxation of income from dependent activit Solving practical examples for calculating wages and taxing the income of natural persons from dependent activities. Scheme of taxation of income from dependent activity in advance. Calculation of the employee's insurance contributions, partial tax base, tax bonus, the amount of advances on income tax from dependent activity and net monthly income in the observed year, provided that the employee also had other cash and non-cash income in individual months. Elaboration of the employee's annual settlement with the additional application of all non-taxable parts of the tax base applicable by law. 4. Income taxation of natural persons Solving practical examples of natural persons income taxation. Scheme for calculating the tax base for a taxpayer who has only one type of business income that is subject to the tax. Use of flat - rate expenses and their calculation. Principles for the application of non - taxable parts of the tax base and their calculation. Conditions for applying the progressive tax rate. Tax calculation. Calculation of the tax bonus and conditions of its application. Calculation of tax advances. 5. Taxation of combined income of natural persons Scheme for calculating the tax base for a taxpayer who has several types of income that are subject to tax. Calculations of partial tax bases on this income. Calculation of the partial income tax base from dependent activity. Calculation of the partial tax base on income from business and other self - employed activity. Calculation of the partial tax base on rental income and on the use of work and artistic performance. Calculation of the special capital gains tax base. Calculation of the partial tax base on other income. Calculation of tax, tax bonus and tax advances. 6. The burden of contributions of self-employed persons revenues Solution of practical examples for the calculation of the self-employed persons (Sole proprietorship) social insurance contribution burden. Method of calculating the actual assessment base. Calculation of assessment base and individual monthly contributions for types of social insurance. Solution of practical examples for the calculation of the self-employed persons (Sole proprietorship) health insurance contribution burden. Method of calculating the actual assessment base. Calculation of assessment base and monthly advances for health insurance. 7. Income taxation of owners of personnel, capital companies and cooperatives Solution of practical examples for the calculation of income tax Legal Persons. Scheme of calculation of the tax base based on the application of deductible and addable items. Subsequently, the calculation of profit shares of individual partners - natural personsin various legal forms of business legal persons according to the Commercial Code, respectively. according to the adjustments in the partnership agreement and the taxation of the calculated profit shares - double taxation of the dividend, i.e. in the form of income tax natural persons in partners v.o.s and general partners k.s. 8. Family business Analysis of specific examples of family businesses. Pointing out the dynamics of family business and entrepreneurial family administration. Description of the structure of tools and roles in its management. Defining the basic rules and procedures for setting up a family business. Conflicts in family business, with a special focus on succession issues. Design a family business. 9. Local taxes and their impact on SME localization Solution of practical examples for the calculation of individual types of local taxes with emphasis on real estate tax - tax on land, apartments and buildings. Assessment of the possibility of exemption. Example of business location - selection of the most suitable location based on a comparison of the amount of tax burden in the case of relevant local taxes for a given business in different cities in Slovakia. 10. Calculation and administration of value added tax Solving practical examples for the calculation of value added tax. Determination of the obligation to register as a VAT payer on the basis of turnover. Determination of the date of submission of the application for registration as a VAT payer and the date of payment of the tax liability. Calculation of the amount of tax liability in the case of business partners with the same VAT rate, calculation of the amount of tax liability in the case of business partners with an unequal VAT rate. Calculation of VAT deduction, assessment of conditions for its application. 11. Semester written work. 12. Social entrepreneurship Identifying the basic factors of social entrepreneurship on the examples of specific social enterprises. Proposal for the establishment of a social enterprise: the concept of the idea, the definition of the goal, the determination of production activity and economic functioning. 13. Selected financial issues of small and medium enterprises Presentation of the solution of tasks: identification of potential sources of financing of SMEs - subsidies, grants, microcredit, venture capital funds, etc., at the national, resp. European level, to find out and analyze the conditions for the possibility of drawing them and then to present the chosen procedure for obtaining an investor resp. the procedure for submitting an application for drawing funds from a selected source.