Assessment of Conditions for Enterprising in Selected Regions Using the Regional Economic Development Risk Indicator

Abstract

Diversity of regions is monitored not only within the respective country, but also by business managers in evaluating their business opportunities in the respective region. In such cases, the managers' decisions are based on the information if the conditions are suitable for economic operations of the respective company. This includes not only evaluation of the company's resources; also the analyses of the company's environment are of a great importance. There are many indicators whose values are measured by statistical offices at the regional and national levels; however, when assessing a region, it is necessary to consider the indicators in mutual relations. For the said reason, use of indicators designed as synthetic is available. The Regional Economic Development Risk indicator is such indicator, which includes not only the selected economic aspects, but also the social aspect and partially the environmental aspect. The said indicator can be used for evaluation of the region within a higher-level unit, including from the corporate viewpoint (if the region has any advantages for business development). The indicator is created by application of fuzzy logic, and in this article, two selected regions of the Czech Republic are evaluated with this indicator, namely Hradec Kralove and Pardubice regions.