Based on the country enterprise report attached below, I need you to make a poster in powerpoint slide (you need to customize the slide size to A2: width is 24 inches and height is 16.5 inches) that covers the outline of the paper except for conclusion. Add graphs and charts. Use bullet points. This is the outline of the paper:Executive Summary (which you write at the very end)Introduction to the country (e.g. location, size, population, GDP, unemployment, …)Description of nation’s NIS OR analyzing the nation’s competitiveness by usingPorter’s DiamondDefinition of SMEsStock profile (SMEs – large enterprises)Entrepreneurial ActivatesPeople attitude towards entrepreneurshipNew venture per year (maybe also exits per year)Their contribution to job creation, GDP (if available)Government’s role in supporting entrepreneurial activitiesConclusion (maybe addressing the main challenges) AND your recommendations what the government should do (to address these challenges)Austria
Executive summary
Since the restoration of sovereignty in Austria after World War II, the country has been
working towards maintaining a competitive position among the members of the European Union.
This could only be achieved through economic prosperity, a goal that the government of the day
is key to realizing. Despite being a small country in terms of geographic positioning and
population, the country has worked hard towards becoming a competitive economy in one of the
most developed regions of the world. Today, the country has moved up the table in terms of
ease of doing business, consequently receiving major boosts, especially through foreign direct
investments.
This has, however, not been without challenges considering the growing public and debt
that impacts greatly on government expenditure. As such, business people are overtaxed, an
issue that has raised concerns from both SMEs and large enterprises. With the public debt
currently at 78% of the public debt, the government has to put in place measures to reduce the
debt. However, with proper approaches, the government could put in place policies and
regulations to ensure businesses sustain themselves while still remitting taxes.
Introduction
Located in central Europe, Austria is a relatively small country with a geographical area
of 83,879 square kilometers. Though a landlocked country, its strategic position between some
of the best performing economies in Europe, such as Switzerland and Germany, has
contributed to her economic recovery and growth since World War II. With a population of close
to 9 million people, the country’s GDP has been steadily growing, where, in 2018, its
performance stood at $439.6 billion dollars. The success of Austria’s economy can be attributed
to the commitment of the government to improve the business environment. World Bank
currently ranks Austria at position 90 when it comes to ease of doing business out of 190
countries across the globe (World Bank 2019). The increased investments in the country have,
as a result, helped with the issue of unemployment, with the current unemployment rates
standing at 5.5 percent.
Entrepreneurial activities in Austria
According to (OECD 2017), global value chains in the contemporary world are driven by
both international trade and foreign direct investments (FDI). Austria has been able to integrate
the two, enabling investors to work in the country. Manufacturing and production are, for
example, two of the main sources of business in the country. On the one hand, the country
prides itself on being able to balance between exports and imports. Currently, the inward and
outward-oriented FDI is almost on the same level. Foreign-owned firms contribute largely to
exports, which is a reflection of the good business environment set by the government. The
industries have also contributed largely to offering employment to locals, where they currently
account for around 19% of employment.
Towards encouraging the SMEs, the government is currently reviewing its tax regulations as a
way of encouraging local investments. OECD (2019) notes that the country has one of the
highest debt to equity ratio among member countries. This has resulted from the tax system
being biased towards debt financing. As such, there are major constraints, especially for startups, who fear the high taxation rates that could hinder the success of their businesses. The new
tax reforms are geared towards encouraging innovation, especially in the service industry, which
is growing at a steady rate.
SMEs definition
SMEs refer to non-subsidiary firms that are independent and employees less than a
given number of personnel. Different countries have varying limits for which an entity is to be
considered as an SME. For example, most of the member countries of OECD have set their
upper limit at 250 with some considering 200 as their limit. Any organization whose number of
employees fall beyond this number is not considered to be an SME. The United States has
raised the bar for other countries with organizations with fewer than 500 employees in the
country being considered to be SMEs.
Enterprise stock profile
The enterprise stock profile of Austria is an interesting one considering the diversity of
enterprises in the country. From small to medium and large enterprises, each category has its
fair share in the economy. Their contribution to the economy comes as both financial and nonfinancial economic influences. As such, they play a pivotal role in the economic development of
the country.
The European Commission (2018) report states that there are currently 330,000 SMEs
in Austria. The economic impact of these enterprises is of great significance to the economic
status of the country. It is estimated that the firms under this category employ close to 2 million
people in the country. The fragile nature of the SME sector, however, makes it difficult to assess
the contribution of these enterprises to the GDP. Entrepreneurs, for example, have been crying
foul over the accessibility of finances with financial institutions placing turf measures that hinder
local investments. This makes it difficult for expansion while others end up closing business due
to prevailing financial difficulties in the country.
Large enterprises, especially those in manufacturing, production, and service provision,
carry the majority share of contribution to both the GDP and employment. Currently, it is
estimated that large enterprises contribute more than 60% of the gross domestic product. This
is attributed to the huge amounts of exports from the country thanks to the heavy foreign direct
investment in the country. A huge percentage of the population has also secured jobs with these
institutions adding to the benefits they bring to the economy.
National innovation systems
The Austrian population is open to new ideas with the country priding itself on the
achievements they have made in technology. Currently, the information technology sector is the
fastest-growing sector in the country as the people continuously embrace the technological
advancements taking place across the globe (OECD 2017). Investments in research and
development from both the government and the private sector have experienced steady growth
in the past decades owing to the commitment by the government to support such projects.
Despite the innovativeness of the Austrian people, the country is facing a great challenge when
it comes to meeting labor demands. The aging population is a worrying factor as industries may,
in the near future, lack fresh blood in their organizations. The government, through the
department of immigration, is seeking to solve the challenge by reassessing the immigration
laws to allow qualified individuals from abroad, bring their skills to the country. This is in addition
to the financing challenges where financial institutions are making it difficult for business
ventures to access credit, which is key to business development.
Conclusion
The performance of the Austrian economy is promising as the country is moving up the
ladder when it comes to ease of doing business. There is, however, the challenge of debt
burden, which mostly falls on the businesses through hefty taxation policies. The government
should, therefore, review the taxation policies to support business growth and development.
Also, a review of the financial regulations should be carried out to ensure businesses receive
the support they deserve through access to credit.
References
OECD (2019). Economic Surveys Austria. Retrieved from:
http://www.oecd.org/economy/surveys/Austria-2019-OECD-economic-survey-overview.pdf
OECD. (2018). OECD Reviews of Innovation Policy: Austria 2018 Overall Assessment and
Recommendations. Retrieved from
https://era.gv.at/directory/305/attach/0_20181207_OECD_Austria_Review_OAR_2018_12_06.p
df
OECD. (2017). http://www.oecd.org/investment/Austria-trade-investment-statistical-countrynote.pdf. Retrieved from http://www.oecd.org/investment/Austria-trade-investment-statisticalcountry-note.pdf
World Bank (2019). Doing business 2019: Training for reform. Retrieved from:
https://www.doingbusiness.org/content/dam/doingBusiness/media/AnnualReports/English/DB2019-report_web-version.pdf
European Commission (2019). 2018 SBA Fact Sheet – Austria. Retrieved from:
https://ec.europa.eu
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