Comparative Analysis of Business Environment Dynamics in Central and Eastern Europe: A Multi-Criteria Approach

The COVID-19 pandemic has negatively impacted the world economy and global society. However, small- and medium-sized enterprises are among the most vulnerable and affected groups of businesses, and in some cases, life-saving interventions have resulted in serious existential implications. The difficulties of insufficient demand, non-negligible fixed costs, and inadequate financing are unsustainable for many firms. Thus, the main aim of this study is to evaluate the variables influencing business activities, apply macroeconomic variables to compare the business environments in fifteen European countries, and utilize appropriate statistical techniques to confirm the results. Significant differences exist in the business climate across selected European countries, as identified by the TOPSIS method, CPI, and GCI. Low levels of corruption, strong economic stability, and high competitiveness make countries like Germany and Austria attractive for business environments. Estonia is also a leader in technological innovation and low corruption. Conversely, Bulgaria and Romania are struggling with higher levels of corruption and reduced competitiveness, potentially impeding business endeavours. The Visegrad Group countries are in the middle of the spectrum, scoring average to good but with opportunities for improvement in corruption and innovation. Overall, the business climate in these countries is diverse, reflecting their unique economic, political, and social circumstances.