Sustainability in Small and Medium Enterprises, Sustainable Development in the Slovak Republic, and Sustainability and Quality Management in Small and Medium Enterprises

Abstract

In this paper, we deal with several areas, one of which is the current and important topic of sustainability. We focus on the defined area of sustainability in society and in companies. Sustainability is also a very important requirement for businesses today, including small- and medium-sized enterprises. Based on two hypotheses established by us, we identified, analyzed, and evaluated research carried out in the past in the Slovak Republic and in small- and medium-sized Slovak enterprises in the field of sustainability. The second important area that we deal with in our article is the quality of the products. Product quality is considered a necessity on the market today, a matter of course in today’s global market economy since it is one of the decisive parameters of the product. At the same time, quality management is only a means to an end, and that goal is a quality product for a customer who meets his requirements. Additionally, a quality product must also meet the requirements of other stakeholders, such as legislation. Practical and functional application of quality management in practice, companies, and organizations are implemented according to certain basic proven approaches, principles, standards, principles, and methods. Small- and medium-sized enterprises are a key part of every national economy; they form the national economic “backbone”. Due to their importance, they still need to be paid attention to, so we focus on these types of enterprises on several topics.

1. Introduction

The first topic we address in this article is sustainability. These are the main topics of our contribution: sustainability, sustainable development, sustainability in Slovak small- and medium-sized enterprises, and sustainable development in the Slovak Republic. The topic of sustainability is one of the key issues for the future of human civilization. The second priority topic in our contribution is sustainability and quality in Slovak small- and medium-sized enterprises. SMEs are keys to any national economy, as they make up more than 90% of all businesses in national economies, so these businesses need to be given due and constant attention. By quality product, we mean a product that meets the requirements of customers and other interested parties (legislation and standards). A high-quality product is, therefore, a product that meets all legislation requirements and relates to sustainability and environmental protection requirements. The third smaller area we address in the article due to its topicality is the current state, trends, and changes in the global economy.

2. Literature Review

2.1. What Is Sustainability?

Sustainability means meeting our own needs without compromising the ability of future generations to meet their own needs. In addition to natural resources, we also need social and economic resources. Sustainability is not just environmentalism. Embedded in most definitions of sustainability, we also find concerns for social equity and economic development [1], particularly development that meets the needs of the present without compromising the ability of future generations to meet their own needs. This famously defines sustainable development [2]. In 2010, the Academic Advisory Committee for the Office of Sustainability at the University of Alberta put together a working definition of sustainability: sustainability is the process of living within the limits of available physical, natural, and social resources in ways that allow the living systems in which humans are embedded to thrive in perpetuity [1]. Sustainability is the balance between the environment, equity, and economy [3]. It is a fact that companies have been going through a very difficult period for a long time, not only in the European market but also in the entire global market. All over the world, companies operating in the turbulent environment of today’s global economy are facing a complicated period. These turbulent developments often lead to new crises of a global nature. Economic operators must take on new challenges, look for ways to stay in the market, and develop, which requires the application of sustainability principles. Sustainability is a way of accessing all planning and decision-making processes aimed at achieving the sustainable development of society while protecting the environment [4]. Moreover, it must be said that the prospects for the future based on current and long-term developments are contradictory; the future is full of risks and uncertainties, not only in the economic field but also in all areas of society because great problems and great challenges are accumulating for our civilization. Therefore, it is essential that companies improve and optimize all their processes; increase their productivity, performance, competitiveness, and sustainability; and develop their activities toward customers, employees, suppliers, investors, and the public.

2.2. Sustainable Economy

Just and sustainable economy: Commission lays down rules for companies to respect human rights and the environment in global value chains.

The European Commission has adopted a proposal for a Directive on corporate sustainability due diligence. The proposal aims to foster sustainable and responsible corporate behavior throughout global value chains. Companies play a key role in building a sustainable economy and society. They will be required to identify and, where necessary, prevent, end or mitigate adverse impacts of their activities on human rights, such as child labor and the exploitation of workers. As for the environment, such adverse impacts would include pollution and biodiversity loss. These new rules will bring legal certainty and a level playing field for businesses. Consumers and investors will provide more transparency. The new EU rules will advance the green transition and protect human rights in Europe and beyond. Several Members States have already introduced national rules on due diligence, and some companies have taken measures at their own initiative. However, there is a need for a larger-scale improvement that is difficult to achieve with voluntary action. This proposal establishes a corporate sustainability due diligence duty to address negative human rights and environmental impacts.

The new due diligence rules will apply to the following companies and sectors:

• EU companies:

  ⚬

  Group 1: all EU limited liability companies of substantial size and economic power (with 500+ employees and EUR 150 million+ in net turnover worldwide).

  ⚬

  Group 2: other limited liability companies operating in defined high-impact sectors, which do not meet both Group 1 thresholds but have more than 250 employees and a net turnover of EUR 40 million worldwide and more. For these companies, rules will start to apply two years later than for Group 1.

• Non-EU companies active in the EU with a turnover threshold aligned with Groups 1 and 2, generated in the EU.

Small and medium enterprises (SMEs) are not directly in the scope of this proposal.

This proposal applies to the company’s own operations, its subsidiaries, and its value chains (direct and indirect established business relationships). In order to comply with the corporate due diligence duty, companies need to:

• Integrate due diligence into policies;
• Identify actual or potential adverse human rights and environmental impacts;
• Prevent or mitigate potential impacts;
• End or minimize actual impacts;
• Establish and maintain a complaints procedure;
• Monitor the effectiveness of the due diligence policy and measures;
• Publicly communicate on due diligence [5,6].

2.3. Sustainability in Practice

Issues of comprehensive social development, national development issues, including social development, the creation of new wages with a positive impact on employment, and, of course, environmental issues, are important topics of wide international debate. In this context, for example, the importance of the private sector for national economies in individual countries is unquestionable, and the importance of private and sustainable enterprises in social and economic development is crucial. Individual governments and all the essential, main social partners in society need to work together effectively to integrate the three fundamental pillars of sustainable development: the economic, social, and environmental. For this reason, it is essential to create synergies between these three components of sustainable development, and sustainable and competitive enterprises are a significant source of long-term growth and employment. The rule of law, law enforcement, and an appropriate legal environment motivate businesses and institutions to operate sustainably. Creating sustainable growth in society can be exploited through a balanced approach to meeting the needs and interests of businesses and other stakeholders. National social policies and their implementation in practice are essential for secure social justice, and this is also very important. Concerning the design and implementation of relevant strategies and policies aimed at supporting and developing sustainable enterprises, these relevant policies must respect certain different approaches in the various countries of the European Union.

2.4. Business Sustainability Profile

The goal of a company’s sustainability profile is to monitor the company’s approach and progress in sustainability. By sustainable activities, we mean all activities that the company performs in the field of sustainability. The Sustainability Profile of a particular company allows one to identify, analyze, evaluate, and communicate internal and external sustainability activities. All company data on sustainability are, therefore, concentrated in one place; for example, visions, reports, certificates, and press releases.

Survey: Sustainability profile in Slovakia:

• Of companies that use the Sustainability Profile, 80% have identified the most positive impact in the areas of communication, sustainability, and corporate social responsibility.
• A total of 68% of companies confirmed a significant increase in the positive perception of their employees due to easy access to all sustainability initiatives.
• A total of 63% of companies confirmed a 75% improvement in data management with the Sustainability Profile.
• After the introduction of the Sustainability Profile, 50% of companies saw a 75% increase in positive perceptions among their customers [5,6].

Recommendations for improving and optimizing the company’s sustainability performance:

• Continuously improve procedures and approach an increase in sustainability performance. Seek inspiration from local, national, and international companies in this area. A suitable method is, for example, the use of the Benchmarking method. With this method, we can determine how your company is doing in sustainability because you can compare your business with other companies that carry out sustainability activities.
• Optimization is needed: the centralization of sustainability activities in one place in the company, which will gain direct access to these activities.
• Provide and constantly build trust in your sustainable business with your customers, employees, suppliers, investors, the public, and public authorities. This trust needs to be secured and communicated with all the necessary and easily accessible sustainability information.
• In conclusion: maintain your business while implementing changes you and the public want to see. Join the companies and institutions that set an example in sustainability.

Just and sustainable economy: the Commission lays down rules for companies to respect human rights and the environment in global value chains

The European Commission adopted a proposal for a Directive on corporate sustainability due diligence. The proposal aims to foster sustainable and responsible corporate behavior throughout global value chains. Companies play a key role in building a sustainable economy and society. They will be required to identify and, where necessary, prevent, end, or mitigate adverse impacts of their activities on human rights, such as child labor and the exploitation of workers, as well as environmental pollution and biodiversity loss. These new rules will bring legal certainty and a level playing field for businesses. They will provide more transparency for consumers and investors. The new EU rules will advance the green transition and protect human rights in Europe and beyond. A number of Members States have already introduced national rules on due diligence, and some companies have taken measures at their own initiative. However, there is a need for a larger-scale improvement that is difficult to achieve with voluntary action. This proposal establishes a corporate sustainability due diligence duty to address negative human rights and environmental impacts.

The new due diligence rules will apply to the following companies and sectors:

• EU companies:

  ⚬

  Group 1: all EU limited liability companies of substantial size and economic power (with 500+ employees and EUR 150 million+ in net turnover worldwide).

  ⚬

  Group 2: other limited liability companies operating in defined high-impact sectors, which do not meet both Group 1 thresholds but have more than 250 employees and a net turnover of EUR 40 million worldwide and more. For these companies, rules will start to apply two years later than for Group 1.

• Non-EU companies active in the EU with a turnover threshold aligned with Groups 1 and 2, generated in the EU.

Small and medium enterprises (SMEs) are not directly in the scope of this proposal.

This proposal applies to the company’s own operations, its subsidiaries, and its value chains (direct and indirect established business relationships). In order to comply with the corporate due diligence duty, companies need to:

• Integrate due diligence into policies;
• Identify actual or potential adverse human rights and environmental impacts;
• Prevent or mitigate potential impacts;
• End or minimize actual impacts;
• Establish and maintain a complaints procedure;
• Monitor the effectiveness of the due diligence policy and measures;
• Publicly communicate on due diligence [6].

3. Quality Management

Quality (the quality of products and services) and quality management are topics incorporated into the theory and practice of managerial businesses. Quality management is one of the cross-sectional management systems in the company; its importance is indisputable for the company’s activities, results, and key performance indicators. In our paper, we focus on the priority topic of quality. We focus mainly on quality management in small and medium enterprises and the current market economy.

Quality, Total Quality Management

There are many different definitions of quality, and many organizations develop their definitions depending on their strategy and stakeholders. Garvin identified five approaches to quality [7]:

• Transcendent: quality is identified when experienced.
• Product-based: the extent to which a product possesses defined characteristics.
• User-based: the extent to which degree a product fulfills needs and expectations.
• Manufacturing-based: the fulfillment of tolerances and requirements.
• Value-based: the relation between cost and price.

In the context of an organization and for this work, a user-based or customer-oriented definition from Bergman and Klefsjö will be used:

The quality of a product (or service) is its ability to satisfy, or preferably exceed, the needs and expectations of the customers [8].

Total Quality Management (TQM) was developed by integrating total quality theories and management theories by considering customer focus, continuous improvement, and teamwork in three dimensions of principles, practices, and techniques [9]. TQM can even be considered a substitute for a proper strategy. It is a philosophy to organize quality improvement by considering the needs and expectations of internal and external customers, covering all parts of the organization, examining the costs of quality, being proactive, and developing systems to support improvement [10]. Bergman and Klefsjö define TQM from a holistic perspective:

• A constant endeavor to fulfill, and preferably exceed, customer needs and expectations at the lowest costs by continuous improvement of work, to which all involved are committed, focusing on the processes in the organization.
• Quality control is a part of TQM that is focused on fulfilling the quality requirements of the organization with inspection and using techniques like statistical sampling and statistical process control [8,11,12]. It aims to correct unwanted or unexpected changes and bring stability and consistency to a product [13].
• Quality assurance is also part of TQM and is focused on providing confidence and ensuring that quality requirements for manufacturing products are fulfilled [8,11,12]. It includes designing processes to build quality in the product and developing monitoring systems to measure performance contributions to prevent adverse events that can negatively affect quality.

Bergman and Klefsjö also name six cornerstones related to TQM needed to develop a culture built upon continuous and consistent management commitment:

• Committed leadership.
• Focus on customers.
• Decisions based on facts.
• Focus on processes.
• Continuous improvement.
• Let everybody be committed.

The ISO 9001:2015 standard provides guidelines for the adoption of a quality management system related to TQM. It proposes seven quality management principles that should work under a process approach:

• Customer focus.
• Leadership.
• Engagement of people.
• Process approach.
• Improvement.
• Evidence-based decision-making.
• Relationship management [12].

Regarding the evolution of quality, it can be argued that three phases take place within an organization, as shown in

Table 1. The evolution of quality [14].

	Phase	Quality Control (QC)	Quality Assurance (QA)	Total Quality Management (TQM)	Quality 4.0 (Q4.0)
Scope		Product	QC, processes	QA, organization, people	TQM, systems, stakeholders
Meaning of quality		Inspection	Design	Empowerment	Innovation
Features		Product specifications, statistical process control, and variation. Correction	Built-in process quality. Process performance and metrics. Prevention	Organizational goals linked to metrics. Quality as a strategic imperative. Continuous improvement	Suppliers, customers, and society are integrated. Focus on data and how digital tools provide new and timely insights

[14].

For the past years, TQM has come very close to successfully implementing concepts such as a sense of safety, aesthetics, well-being, engagement, and participation. It is also related to organizational innovation, which is a valuable strategy for world-class performance through value creation, new thinking, and operational improvement [15,16].

The current importance of effective quality management lies in the following factors:

• “Quality is, through the technical—stable economic performance of organizations of an organization with a modern quality management system, indeed currently significantly better results than an organization with a traditional focus on proving the quality of control.” The lower the share of discrepancies in overall performance, the higher the level of customer satisfaction and loyalty and the greater the ability to meet customer requirements.
• “Quality management is the most important protective factor against market losses”. In recent years, research conducted in EU countries shows that about 66% of all market causes are due to the low quality of products and services.
• “Quality is a very important source of material and energy savings”. An example is the use of lower-reliability products. The use of such products results in a higher failure rate and a lower share of the total available time occupied. Although such an approach may confer a short-term advantage to the manufacturer, it is unacceptable from a societal point of view.
• “Quality also affects macroeconomic indicators”. The real wealth of the organization is directly dependent on the development and improvement of quality management systems, both in industrial organizations and in the field of services, the public sector, education, etc.
• “Quality is a limiting factor of the so-called sustainable development.”
• “Quality and consumer protection are continuous vessels”. By the end of the twentieth century, the issue of consumer protection became a very important factor influencing the legislation of almost all developed countries. Long-term experience has suggested that the most effective incentive for producers to produce products that do not harm users is to seek high refunds [17].

Other important definitions and explanations of quality and its importance to a company and customers:

Common Meanings of Quality:

• Quality is fitness for use: quality means the product or service can perform its intended function.
  • Poor quality of a product or service costs users if it does not perform its intended function.
• Quality is meeting customer expectations:
  • Quality is satisfying the customer.
  • The customer defines quality.
  • The customer perceives the quality of a product or service.
• Quality is exceeding the customer’s expectations.
  • Quality is the extent to which the customers or users believe the product or service surpasses their needs and expectations.
  • Quality is delighting the customer.
• Quality is superiority to competitors:
  • Quality is how a company’s products and services compare to those of competitors or how they compare to those offered by the company in the past [18].

Definitions of Quality:

People have found many ways to define quality. Some of the most popular definitions for quality are listed below. All of them are correct as they each contain a key element of what quality means to the users of products and services.

(a)

A degree of excellence.

(b)

Conformance to requirements.

(c)

A totality of characteristics that act to satisfy a need.

(d)

Fitness for use.

(e)

Fitness for purpose.

(f)

Freedom from defects.

(g)

Delighting customers [19].

Measuring Quality:

(a)

Quality is specification driven—does it meet the set requirements?

(b)

Quality is measured at the start of life—what percent passes customer acceptance?

(c)

Quality is observable by the number of rejects from customers.

The quality characteristics of a product or service are known as the ‘Determinants of Quality’. These are the attributes customers look for to decide if it is a quality product or service [19].

Manufacturing companies have a very strong focus on quality. This gives them a good reputation and makes their customers happy and satisfied. A good slogan focused on quality to represent one’s business can be a great idea. It will show potential clients what one is all about, which is of concern to clients.

Here are examples of some accurate, realistic slogans:

• 100% Quality.
• A Company of Quality.
• Committed To Quality. Committed To You
• Create. Enhance and Sustain.
• Delivering excellence.
• Delivering results, reliability, and rock solid dependability.
• Focus On Quality.
• High Performance. High Quality.
• Premium Quality. Guaranteed.
• Quality Is Key.
• Quality is the Best Business Plan.
• Quality Leads!
• Quality Protects Jobs.
• Remember—The Next Inspector Is The Customer.
• Safety, Quality & Quantity. In That Order.
• Safety. Quality. Excellence.
• Committed To Customer Satisfaction.
• We Never Forget Who We Are Working For.
• We Stand Ahead In Quality [20].

4. Small and Medium Enterprises, Characteristics, and Impact on the Economy

The definition of SMEs has varied over time, with some believing there is a lack of homogeneity in their categorization [21]. For the purpose of this research, reference will be made to the definition set out following the European Commission recommendation on 6 May 2003 and which took effect on 1 January 2005. The

Table 2. The new thresholds were implemented by the European Commission on 1 January 2005 [22].

Enterprise Category	Headcount: Staff	Annual Turnover	Annual Balance Sheet Total
Medium -Sized	<250	≤€50 million	≤€43 million
Small	<50	≤€10 million	≤€10 million
Micro	<10	≤€2 million	≤€2 million

outlines the key aspects of the new definition, as recommended by the European Commission [22].

4.1. General Characteristics of SMEs

When researching the general characteristics of SMEs, comparative analysis with larger organizations helps to provide a clearer image of their standing in the market. SMEs exhibit both advantages and disadvantages when compared to larger organizations. In their comparative paper, Audretsch, Prince, et al. examined small and large firms to identify key issues surrounding SMEs. Small firms have greater potential flexibility and closeness to the customer and an edge toward customization and innovation. They seek out markets where their advantages count and are not in direct competition with their larger counterparts. However, they continue to state that despite these key advantages, SMEs lack economies of scale, scope, and learning [23]. Edwards, Delbridge, et al. outline that SMEs exhibit behavioral features that give them an innovative advantage over large firms, comprising of the ability to respond rapidly to external threats or opportunities, have more efficient internal communications, and exhibit interactive management cycles [24]. Rothwell makes reference to SMEs in their attempts to progress by stating that “SMEs are thought to lack the material and technological resources that enable large firms to ‘spread risk over a portfolio of new products’ and ‘fund longer-term R&D’” [25]. In the

Table 3. Key differences between SMEs and Large organizations [22,26].

Characteristics	SMEs	Large Organizations
Structure	Few or no layers of management Top Management close to the point of delivery Low degree of specialization High incidence of innovativeness	Several layers of management Top Management far from point of delivery The high degree of specialization Low incidence of innovativeness
Procedure	Low degree of standardization Low degree of formalization People dominated Idealist decision making	The high degree of standardization The high degree of formalization System dominated Fact-based decision making
Processes	Simple Planning & Control system Informal evaluations &reporting Result orientated	Complex planning &control system Formal evaluation &reporting Control orientated
People	High degree of resistance to change Corporate mindset Modest capital & financial resources	Low degree of resistance to change Departmental mindset Abundant capital & financial resources

are displayed key differences between SMEs and Large organizations.

4.2. Small and Medium Enterprises and Their Importance in the Economy

Micro-, small-, and medium-sized enterprises (SMEs) play a central role in the European economy. They are a major source of entrepreneurial skills, innovation, and employment. In the enlarged European Union of 25 countries, some 23 million SMEs provide around 75 million jobs and represent 99% of all enterprises. However, they are often confronted with market imperfections. SMEs frequently have difficulties in obtaining capital or credit, particularly in the early start-up phase. Their restricted resources may also reduce access to new technologies or innovation. Therefore, support for SMEs is one of the European Commission’s priorities for economic growth, job creation, and economic and social cohesion. The category of micro-, small-, and medium-sized enterprises (SMEs) is made up of enterprises that employ fewer than 250 persons and have an annual turnover not exceeding EUR 50 million and/or an annual balance sheet total not exceeding EUR 43 million [27].

4.3. The Position and Roles of Small and Medium Enterprises in the Economy

Small- and medium-sized enterprises are very important for national economies. They are considered the national economic “backbone” and an important stabilizing factor of the national economy.

Small and medium enterprises and their functions:

• Social function (every citizen is free to do business in a market economy).
• Economic function (small- and medium-sized enterprises play a significant role in maintaining, maintaining market competitiveness, market competition, etc.).
• Structural function.

They reduce regional disparities in the country; for example, in terms of job opportunities and customer service offerings, SMEs respond efficiently and flexibly and meet local requirements.

• Delivery function.

Small- and medium-sized enterprises are important suppliers of products and services for customers. They are also important suppliers for large companies and multinational companies.

• Employer function.

A very important function of these enterprises in every national economy is the employer function. For example, these companies were able to absorb many employees laid off from state-owned enterprises during the transformation of the Slovak economy—during the transition from a planned economy to a market economy at the end of the 20th century. Moreover, when a multinational company decides to leave the country in which it has operated for some time, such unemployed people are also largely absorbed by small- and medium-sized enterprises.

4.4. SMEs in the European Union (EU27) from 2008 to 2021

Number of SMEs in the European Union 2008–2021, by size:

• There were estimated to be approximately 22.6 million small- and medium-sized enterprises (SMEs) in the European Union in 2021, with the vast majority of these enterprises being micro-sized firms that only employed fewer than nine people. A further 1.3 million enterprises were small firms with between 10 and 49 employees, and approximately 201 thousand were medium-sized firms that had 50 to 249 employers; value varies by country. SMEs are an important part of the European economy, but their value to each country varies quite significantly. In Malta, for example, 93.1 percent of the value added to the economy comes from SMEs, while in Germany, 82 percent of the county’s added value comes from SMEs. For the European Union, the average value that SMEs contribute to the economy is around 56 percent. Almost 84 million are employed by SMEs. In 2021, SMEs in the European Union employed almost 84 million people. In Europe’s biggest economy, Germany, SMEs employed 18.5 million people, with over 6.8 million people employed by small-sized enterprises. Micro-sized enterprises employed approximately 38.4 million of the 83.8 million people employed by SMEs in the EU. There were approximately 18.5 million people employed in small- and medium-sized enterprises (SME) in Germany in 2021, by far the most of any other country in the European Union. On the other hand, Malta had the lowest number of people employed in small- and medium-sized enterprises in the European Union, reaching just 145.6 thousand people.
• Small- and medium-sized enterprises (SMEs) contributed approximately EUR 3.5 trillion to the European economy in 2020, with micro-sized enterprises accounting for just over EUR 1.25 trillion of this amount. The value added from SMEs in Germany was estimated to be over EUR 931 billion in 2021, by far the most of any other country in the European Union. On the other hand, Malta had the lowest amount of value added in small- and medium-sized enterprises in the European Union, at EUR 5.2 billion. Large businesses that employed 250 or more people contributed almost half of the value added to the non-financial business economy of the European Union in 2020, compared with 17.3 percent for medium-sized businesses that had between 50 and 249 workers.
• There were estimated to be approximately 5.76 million small- and medium-sized businesses (SMEs) operating in the distributive trades sector in the European Union in 2020, the most of any industry sector in that year.
• There were estimated to be approximately 58.9 thousand medium-sized enterprises operating in the manufacturing sector in the European Union in 2021, the most of any industry sector for this size band in that year.
• There were estimated to be approximately 305 thousand small-sized enterprises operating in the wholesale and retail trade repair of motor vehicles and motorcycle sector in the European Union in 2021, the most of any industry sector in this size band in that year.
• There were estimated to be approximately 20 million persons employed in small- and medium-sized businesses (SMEs) operating in the distributive trades sector in the European Union in 2020, the most of any industry sector in that year [28]. In the Figure 1 are displayed a number of enterprises (SME) in the European Union in 2021.

In the Figure 2 are displayed a number of enterprises (SME) in the European Union in 2021, by country.

4.5. Small and Medium Enterprises in the Slovak Republic

For the Slovak Republic, in the long run, the position of small- and medium-sized enterprises (SMEs) in the national economy is important, especially in terms of contributions to total employment, added value, and support for economic development. In the monitored year 2020, the COVID-19 pandemic was unconditionally a central factor affecting the economic environment. The decline in economic activity did not occur only in Slovakia but was also characteristic of other countries. The effects of the new type of coronavirus were also reflected in the economic performance of the small- and medium-sized enterprise sectors. The performance of the Slovak economy is affected by the pandemic after years of continuous growth failure. The drop was sharpest in the second quarter of 2020, when it fell by almost 11%. In the second half of the year, the Slovak economy was able to slow down its pace. The fall in GDP in the second half of the year was significantly lower (in the fourth quarter, it represented 2.1%). In 2020, SMEs achieved a 74.2% share of employment in the corporate economy. The share of SMEs in total employment in the Slovak economy was 59.1%. The level of business activity of SMEs hardly changed in 2020, reaching a level of 21.8%. Slovakia ranks among the EU countries with the highest number of small- and medium-sized enterprises in the total population [29].

4.6. Recovery and Resilience Plan of the Slovak Republic

The Recovery and Resilience Plan of the Slovak Republic was created in response to a significant economic downturn, which was recorded as a result of the pandemic. It is also a response to the identified challenges of the Slovak economy, while the target areas take into account the key problems of the economy. It is based on Slovakia’s global vision and is intended to contribute to the restart of the Slovak economy. It targets five main areas of public policy.

Namely, in the following areas:

• Green economy;
• Education;
• Science, research, and innovation;
• Health;
• Efficient public administration and digitization.

In line with the above, it is also necessary to continue in line with the needs of small- and medium-sized enterprises in making SME support more effective. In fulfilling development goals, there is a need to continue systematic cooperation continuously and consider the suggestions and recommendations of individual actors to improve business conditions for SMEs [29].

5. Materials and Methods

We chose the systems science approach as the basic procedure applied in the preparation and creation of our paper. The aim of the set strategy in the preparation of the article was to determine and meet the chosen system approach in individual steps. Within the methodology, we used several proven basic theoretical methods—analysis, synthesis, induction, and deduction, but also some empirical scientific methods. We also collected, analyzed, and evaluated data and information. We used knowledge related to small and medium enterprises and applied knowledge from the field of management and current management. We also worked with specific knowledge in the field of quality management in small- and medium-sized enterprises. By processing and using our theoretical and practical knowledge and using known, available information, we have worked on the results and their practical applications in the main areas of our contribution.

We have focused the research objectives and the objectives of this article on several important, related areas. The goals are set:

• In this paper, we address, among other topics, the current and important topic of sustainability and sustainable activities in companies. In this context, we can say that the future of the global economy and society is full of risk and uncertainty. This is not only true for the economic field; these risks, changes, and uncertainties apply to all areas of society because there are cumulative major problems and challenges in our civilization. It is, therefore, essential that companies increase their performance, competitiveness, and sustainability. In the area of sustainability, there is a need to support the sustainable activities and behavior of businesses, including small- and medium-sized enterprises, as businesses have a key role to play in building sustainability. Sustainability consists of three basic pillars: economic, social, and environmental. In this paper, we also deal with the profile of the company’s sustainability and research in this area in Slovakia. Based on the study, analysis, and evaluation of professional materials and our experience, we also propose recommendations for improving and optimizing the company’s performance in the field of sustainability. In this paper, we deal with sustainability and sustainable development in Slovakia, both theoretically and practically. In the practical area, we focused on the production of Slovak SMEs and on sustainable development in Slovakia; we established two hypotheses related to sustainability.
• This paper also briefly deals with current management and describes its starting points, its characteristics, trends, and changes in the 21st century. We also focus on selected changes in the market and management, and in this context, we describe selected requirements for companies today. The external environment for companies changed significantly from the end of the 20th century to the beginning of the 21st century. The conditions for doing business in the market are changing continuously and increasingly, the development of technologies and information and communication technologies is accelerating, and the speed and frequency of changes are increasing. We think that we need to pay attention to this topic because we need to pay close attention to this topic. Businesses need to be well prepared to change the conditions for doing business in the global market; that is, they must first realize that change is a reality, then they need to identify, analyze, and evaluate their impact on the business. Finally, they need to prepare the business and adapt the company to these external changes. Suppose changes in the external environment are faster and greater than the company’s response to these changes. In that case, the company may run into problems, which may increase, and they may be so great that they threaten the company’s very existence. By this, we mean that the company’s internal response to external market changes must be adequate.
• We also deal with the description of selected important characteristics of a small business. In this section, this description of small businesses is a part of an important topic in our paper. Based on our theoretical and practical knowledge and experience, we focused on describing a small business’s selected characteristics.

6. Results and Discussion

In the article, we deal with sustainability and sustainable development in Slovakia, both theoretically and practically. In the practical area, we established two hypotheses. Subsequently, we identified, analyzed, and evaluated the research carried out in the past in the conditions of the Slovak Republic and in small- and medium-sized Slovak enterprises in the field of sustainability to confirm or deny the established hypotheses.

Hypothesis 1 (H1): based on pre-crisis, crisis, and post-crisis development, we assume that the Slovak Republic will make progress in fulfilling all indicators related to sustainable development.

We focused on the description and analysis of theoretical government documents and the evaluation of research in the field of sustainable development in the conditions of the Slovak Republic. As for government legislative documents, Slovakia developed and approved Slovakia’s development strategy until 2030—a long-term strategy for the sustainable development of the Slovak Republic–Slovakia up to 2030.

Slovakia will develop sustainably, progress, and fulfill all the required indicators related to sustainable development resulting from international and other agreements. The Slovak Republic has a vision and strategy in the field of sustainable development. The vision and strategy for the development of Slovakia until 2030—the long-term strategy for the sustainable development of the Slovak Republic–Slovakia up to 2030—is the basic implementation document for fulfilling the national priorities of the 2030 Agenda for Sustainable Development of the United Nations in the Slovak Republic. At the same time, it fulfills the role of the National Strategy for Regional Development of the Slovak Republic under Act No. 539/2008 Coll. on the support of regional development. Its content is in full compliance with the international obligations of the Slovak Republic in the field of sustainable development in its economic, environmental, and social dimensions. It is primarily about the so-called European Green Agreement, which is a key document of the new European Commission, and which is also based on the sustainable development goals of the 2030 Agenda while responding to climate change. Slovakia 2030 also reflects on the current EU program documents that are created in connection with the start of the new EU program period 2021–2027. The task of the document is not only to reflect and specify the priorities of Agenda 2030 and the European Green Agreement in the specific conditions of Slovakia but also to frame as an integrated development strategy the public policy of the state and the development policies of local governments to ensure their coordination, synergy, stability, and more efficient use of public resources. Slovakia 2030 defines Slovakia’s development priorities and goals in three integrated development programs covering key areas of development: the protection and development of resources, their sustainable use, and the development of communities. The priorities and goals of the long-term sustainable development strategy will be further elaborated in the National Investment Plan, sectoral strategies of individual central government bodies, economic development and social development plans of self-governing regions, cities, and municipalities, and, at the same time, will be reflected in the preparation of the new EU program period 2021–2027, primarily in the Partnership Agreement and Operational Program Slovakia [30].

What is the current state of Slovakia in terms of sustainability?

• Despite large investments in sustainability, many businesses in central Europe focus exclusively on the production of the products themselves and do not offer any added value to take them further. This is exactly what the Slovak Business Agency focuses on in Slovakia, which supports business at the national, regional, and local levels.
• Business sustainability is becoming increasingly important for all businesses in all industries. Up to 62% of European business leaders consider a sustainable development strategy essential for competitiveness today, and another 22% think it will become essential in the future. Some large global companies, such as the BMW car company, LG Electronics, and Nestlé, practice long-term sustainability in their concept. In terms of the sustainability of companies in Slovakia, the most active sectors are technology, telecommunications, and retail companies. Above all, these are branches of foreign companies. Such companies include, for example, Lindström. It has a long-term focus on sustainable innovation, material recycling, creating win–win strategies to support the sustainability of partner companies, cooperation with local communities, and the social responsibility of its employees [31].

6.1. Development of Selected Indicators of Sustainable Development of EU Countries

Each country records a different development of indicators regarding its economic structure and maturity. An overview of the development of selected indicators, together with the expected desired direction (+/-) in the monitored EU countries in 2004–2015, can be found in the

Table 4. Overview of the development of sustainable development indicators in EU countries in the period 2004–2015 [32].

Country	Development of Indicators
	resPro +	Risk -	lifeExp +	Emis -	RenEn +	enerCons -	GdpPc +	Devel +	Confid +	Birdx +
EU 28	growth	growth	growth	decline	growth	decline	growth	growth	decline	-
Belgium	growth	decline	growth	decline	growth	decline	growth	decline	decline	decline
Bulgaria	growth	decline	growth	decline	growth	decline	growth	growth	decline	-
Czechia	growth	decline	growth	decline	growth	decline	growth	growth	decline	decline
Denmark	growth	growth	growth	decline	growth	decline	growth	decline	decline	decline
Germany	growth	growth	growth	decline	growth	decline	growth	growth	decline	decline
Estonia	growth	decline	growth	decline	growth	decline	growth	growth	decline	decline
Ireland	growth	growth	growth	decline	growth	decline	growth	decline	decline	-
Greece	growth	growth	growth	decline	growth	decline	decline	decline	decline	-
Spain	growth	growth	growth	decline	growth	decline	stagnation	growth	decline	-
France	growth	decline	growth	decline	growth	decline	growth	decline	decline	decline
Croatia	growth	decline	growth	decline	growth	decline	growth	growth	growth	growth
Italy	growth	growth	growth	decline	growth	decline	decline	decline	decline	-
Cyprus	growth	growth	growth	decline	growth	decline	decline	stagnation	decline	-
Latvia	growth	decline	growth	growth	growth	decline	growth	growth	decline	-
Lithuania	growth	decline	growth	decline	growth	decline	growth	growth	decline	-
Luxembourg	growth	decline	growth	decline	growth	decline	growth	growth	decline	-
Hungary	growth	decline	growth	decline	growth	decline	growth	growth	decline	-
Malta	growth	growth	growth	decline	growth	decline	growth	growth	decline	-
Netherlands	growth	decline	growth	decline	growth	decline	growth	decline	decline	decline
Austria	growth	growth	growth	decline	growth	decline	growth	decline	decline	-
Poland	growth	decline	growth	decline	growth	decline	growth	growth	decline	-
Portugal	growth	decline	growth	decline	growth	decline	growth	decline	decline	-
Romania	decline	decline	growth	decline	growth	decline	growth	growth	decline	-
Slovenia	growth	growth	growth	decline	growth	decline	growth	growth	decline	-
Slovakia	growth	decline	growth	decline	growth	decline	growth	stagnation	decline	-
Finland	growth	decline	growth	decline	growth	decline	growth	decline	decline	decline
Sweden	growth	growth	growth	decline	growth	decline	growth	stagnation	growth	decline
United Kingdom	growth	decline	growth	decline	growth	decline	growth	growth	decline	decline

.

Indicators of the sustainable development of EU countries:

• Growth of real GDP per capita (GdpPc);
• Productivity of resources and domestic material consumption (resPro);
• People at risk of poverty or social exclusions (Risk);
• Life expectancy at birth by gender (lifeExp);
• Greenhouse gas emissions (Emis);
• Share of renewable energy in gross final energy consumption (RenEn);
• Primary energy consumption (enerCons);
• Common index of birds by species (Birdx);
• Official development assistance as a share of gross national income (Devel);
• Population with confidence in EU institutions by institutions (Confid);

Out of 10 monitored indicators, 7 were developed toward TUR: the GDP per capita, primary productivity of resources, life expectancy at birth by sex, emissions of greenhouse gases, share of renewable energy in gross final energy consumption, primary energy consumption, and official development assistance as a share of gross national product. It si also appropriate to consider the rate of development of the indicators. In the case of official development assistance, we noted an increase from 0.42% (2004) to 0.51% (2015) of GNP. However, in 2015, the EU and the Member States committed to increasing the share of provided development aid to 0.7% of GNP. So, the indicator does not reach the required values, even if it develops in a positive direction. The threshold values for compliance with the goals set in the Europe 2020 strategy document indicate the “Share of renewable energy on gross final energy consumption.” While the share of renewable energy represented 8.5% of gross final energy consumption in 2004, it was up to 16.7% by 2015. The goal of the European Union is to achieve a 20% share of renewable energy by 2020 from the gross final energy consumption. If we consider the average year-on-year increase during the period 2004–2015, which reached 0.75 percentage points, with conditions unchanged in advance, we can state that the indicator will probably reach the set goal (20.45% by 2020). The remaining three indicators did not develop in the desired direction for TUR: the people at risk of poverty or social exclusion, the index of common bird species, and trust in European institutions of the Union. Even if reducing the number of people at risk of poverty or social exclusion is among the basic goals of the Europe 2020 strategy, this indicator is developing in the opposite direction. In 2014, every fourth EU resident faced the risk of poverty. During the monitored period 2010–2015, the indicator increased by 0.1 percentage point (23.7%–23.8%). The goal of the European Union in 2020 is to reduce the number of people at risk of poverty by 20 million compared to 2008. This means that by 2020, the indicator would have to drop to a value of approximately 18.9%, which is based on previous development that seems unrealistic. The index of common bird species is declining rapidly across the EU. Between 2004 (80 species) and 2015 (61.8 species), the index decreased by approximately 18 species. In the year 2007, The International Union for Conservation of Nature and Natural Resources issued a warning report about the threat to biodiversity and demanded that the decline in the index be stopped by 2010, which, however, failed. We see the possible causes of the decline in disturbed ecosystems, intensive agriculture, the use of pesticides, climate change, etc. Trust in institutions the European Union also recorded a negative development and a decrease in the confidence of the population. While in the year 2004, EU institutions were trusted by 57% of the EU population, it was only 38% of the population in 2015.

6.2. Aggregate Index Creation Methodology

It is necessary to choose a suitable statistical method of analysis to compare and analyze the obtained data. We worked with the input data in the R program, in which we applied principal component analysis (PCA) to the data. PCA analysis transforms the multivariate input data so that the data of the most significant linear directions are obtained at the output while abstracting from the least significant directions [33,34]. In the social sciences, PCA is widely used, for example, in the creation of sub-indexes of EU Sustainable Development [35], the Global Creativity Index [36], or the KOF Globalization Index [37]. Put simply, PCA is used to reduce large-scale input data. A more detailed description of the method is provided by Kráľ et al., “Method is one of the basic methods of data compression—we can represent the original n variables with a smaller number of m variables while explaining a sufficiently large part of the variability of the original data set. The system of new variables—we call them principal components—consists of linear combinations of the original variables and we create it step by step. The first principal component captures the largest part of the variability of the original data set, the other principal components contribute to the total variance with a smaller proportion.” So, the goal of PCA analysis is to determine the number of principal components that preserve the greatest variability of the original data. As stated by Kráľ et al., when searching for the main components, we start from input data n, which we label as X1, X2, …, Xn [38].

We also label the vector X = (X1, X2, …, Xn) T (1) and its covariance matrix (X).

The goal is to construct new variables Z1, Z2, …, Zk, (k ≤ n), while we will focus only on linear combinations of the original variables.

We start from the assumption that the matrix (X) has exactly r positive mutually different eigenvalues (r ≤ n), which we denote by the symbols λ1 > λ2 > ··· > λr.

The orthonormal eigenvectors of the matrix (X) corresponding to the eigenvalues λ1, λ2, …, λr are denoted by v1, v2, …, vr.

So, we are looking for a variable Z1 = cTX = c1X1 + c1X2 +···+ cnXn, (2) so that it exhausts as much of the variability of the original variables as possible.

The first principal component has the form: Z1 = vT 1 X = v11X1 + v12X2 +···+ v1nXn (3)

In this way, we proceed in the search for additional components. The next step is to determine how many principal components to take instead of the original n variables. Determining the number of principal components is based on the degree of variability of the original data. Usually, the first two components already cover more than 50% of the variability of the original data; in our case, it is in the range of 75–80%. We must consider the fact that statistical methods only provide us with a basic picture of the input data and do not consider the relationships between the original variables and their meaning.

6.3. Evaluation of the Aggregated SD Index in the Pre-Crisis, Crisis, and Post-Crisis Period

In the

Table 5. Sustainable development index and its absolute change between periods [32].

Country	Pre-Crisis Period	Crisis Period	Country	Change in Value Index	Country	Post-Crisis Period	Country	Change in Value Index
LU	1	1	BG	2.21	LU	1	LT	0.34
SE	2	4	RO	1.63	SE	3	IT	0.33
NL	3	2	SK	1.46	NL	2	RO	0.28
DK	4	3	LT	1.34	DK	4	LV	0.27
AT	5	12	PL	1	AT	12	HR	0.19
FR	6	5	HU	0.62	FR	5	GB	0.18
GB	7	7	CZ	0.58	GB	6	IE	0.18
BE	8	6	LV	0.50	BE	7	PL	0.17
DE	9	11	CY	0.32	DE	11	SK	0.11
IE	10	10	GR	0.09	IE	9	BE	0.10
FI	11	14	EE	0.04	FI	14	BG	0.06
IT	12	8	SI	−0.08	IT	8	SE	0.03
EU28	13	9	EU28	−0.13	EU28	10	SI	0.02
ES	14	16	PT	−0.18	ES	16	FI	0.01
PT	15	17	DK	−0.29	PT	17	CY	−0.01
MT	16	24	NL	−0.30	MT	26	EU28	−0.02
GR	17	15	BE	−0.31	GR	19	DE	−0.03
CY	18	13	IT	−0.36	CY	13	AT	−0.03
SI	19	19	FR	−0.36	SI	18	FR	−0.04
CZ	20	21	IE	−0.52	CZ	22	MT	−0.04
HU	21	23	GB	−0.54	HU	23	AU	−0.05
SK	22	18	ES	−0.57	SK	15	PT	−0.10
LV	23	25	DE	−0.59	LV	24	CZ	−0.14
LT	24	22	LU	−0.65	LT	20	ES	−0.18
EE	25	28	FI	−0.91	EE	28	LU	−0.19
PL	26	27	MT	−1.07	PL	27	NL	−0.22
RO	27	26	SE	−1.12	RO	25	GR	−0.35
BG	28	29	AT	−1.15	BG	29	EE	−0.38
HR	29	20	HR	-	HR	21	DK	−0.51

, we summarizes the resulting country rankings calculated using PCA. It also captures the changes of individual EU countries in the development toward sustainable development in the three investigated periods: pre-crisis, crisis, and post-crisis.

Indicators of the sustainable development of EU countries:

• Growth of real GDP per capita (GdpPc);
• Productivity of resources and domestic material consumption (resPro);
• People at risk of poverty or social exclusions (Risk);
• Life expectancy at birth by gender (lifeExp);
• Greenhouse gas emissions (Emis);
• Share of renewable energy in gross final energy consumption (RenEn);
• Primary energy consumption (enerCons);
• Common index of birds by species (Birdx);
• Official development assistance as a share of gross national income (Devel);
• Population with confidence in EU institutions by institutions (Confid);

The green-lit columns represent the ranking of EU countries according to the sustainable development index for the pre-crisis, crisis, and post-crisis periods. The unequivocal leader in the sustainable development index was Luxembourg, which ranked first in every period. One possible reason for its high ranking is the fact that Luxembourg is among the richest countries in Europe, with a very small share of the industry. Countries such as Sweden, the Netherlands, Denmark, and France alternated positions behind Luxembourg. They are all northern and western European countries that focus on the transition of the economy to sustainability. Sweden, the Netherlands, and Denmark are considered leaders in using tax policy to support an environmentally sustainable economy, and France is among the most advanced countries in implementing the green economy strategy. An important factor influencing the location of countries in the sustainable development index area is their economic maturity and economic structure. The difference in economic performance between countries can be attributed to many industrial and political factors in individual Member States, such as different employment sectors and policy initiatives, including lifelong learning to acquire new job skills or subsidies for the renewable energy sector. All these factors affect the improvement or deterioration of the position of countries in the sustainable development index. Countries focusing primarily on mining/heavy industry, such as Bulgaria and Romania, were placed at the bottom of the rankings; it is appropriate to mention that the countries of northern and western Europe also need their production. The orange-lit columns represent the absolute shift of EU countries toward the sustainable development index between the pre-crisis and crisis periods and, subsequently, between the crisis and post-crisis periods. Between the pre-crisis and crisis periods, Bulgaria, Romania, Slovakia, and Lithuania recorded the biggest shifts. However, we must emphasize the fact that several of the main indicators are directly affected by the crisis, and therefore, in the long term, the position of these countries is not by the sustainable development index. Between the crisis and post-crisis periods, the absolute shift of EU countries towards the sustainable development index decreased significantly. While in the previous period, countries such as Bulgaria (2.21), Romania (1.65), Slovakia (1.46), Poland (1), and Hungary (0.62) recorded a high shift toward TUR, transitioning to the post-crisis period, the pace of their development dropped significantly: Bulgaria (0.06), Romania (1.65), Slovakia (0.11) and Poland (0.17), as well as Hungary, which reached negative numbers (−0.05). On the other hand, countries such as Sweden, Austria, Finland, France, and the Netherlands, which recorded a negative shift toward TUR in the previous period, achieved improvement. The proposed indices allowed us to obtain a comprehensive picture of the position of each of the 28 EU countries in terms of sustainable development. Based on the comparison of the countries to which we applied the SD aggregate indicator, we can identify countries whose economic development is sustainable compared to the other 28 EU countries. The visualization of the results also allows for obtaining a geographical view of wider regional units and their development in the sustainable development index areas over time. Since we evaluated the TUR indices of the countries of the European Union, we focused on supranational regions, assuming that certain geographically close units show common features. This assumption was confirmed later during the evaluation of indices when countries show similar tendencies, e.g., V4 countries, Baltic countries, and western European countries. In the European Union, sustainable development is among the basic goals of European policy, which is firmly established in European treaties and incorporated into key projects, sectoral policies, and initiatives. Based on the evaluation of the development of indicators in individual EU countries and the entire European Union, we can state that each country recorded a different development of indicators due to its economic structure and maturity. Based on the application of the PCA principal components method, we can conclude that Luxembourg can be considered the leader in the field of the sustainable development index, which ranked first in all three periods. Countries such as the Netherlands, Denmark, France, and Sweden followed Luxembourg with minimal differences. Countries such as Bulgaria, Poland, Romania, and Estonia were placed on the last rungs. The Slovak Republic recorded a positive development toward the sustainable development index and moved from 22nd place (pre-crisis period) by 7 places to 15th place (post-crisis period). The main motivation for processing the given topic was the effort to create a draft TUR index that would make the development of individual EU countries more efficient and transparent toward the sustainable development index [32].

Based on the results presented at the end of the research, we can state that our hypothesis was confirmed: the Slovak Republic will make progress in fulfilling all indicators related to sustainable development.

Hypothesis 2 (H2): Small- and medium-sized Slovak enterprises are gradually focusing more on sustainable development. We can state a positive direction and progress in this area.

Research: identifying indicators of sustainable development in enterprises in the Slovak Republic.

Respondents introduced us to the main indicators that they recorded in the enterprise and which are of great importance to them. In some cases, these were activities in which the extent of action was recorded. The total number of enterprises that participated in the paper was 79. Based on the size, they are specified as follows: Micro—4, Small—29, Medium-sized—24, Large—22, and Total—79. We divided the achieved results and specific indicators applied in enterprises based on the triple bottom line model. We found that out of the total number of indicators, 56% of indicators were of an environmental nature, 33% of indicators were of a social nature, and only 11% were of an economic nature (Figure 3). When determining economic indicators, we often encounter the problem of public reporting and measurement. This is because enterprises are obliged to record most economic indicators due to legislation. Therefore, it is difficult to determine which economic indicators are reported by enterprises regarding sustainable development.

Sustainability requires a holistic approach to business activities and needs. For this reason, meeting sustainability goals is a very complex and demanding process, even in a small business. In their decision-making process, managers should deal with the problem of the multi-criteria selection of what to prioritize. We believe that managers must also deal with the analysis and effects that can be reflected in the corporate commitments in the field of sustainability and also in the performance of the business through a series of sustainability indicators. The presented survey carried out in 79 enterprises in Slovakia gave us a picture of the state of recording sustainable development indicators in practice. Each business is characterized by different indicators that need to be recorded. The survey shows that businesses, in general, focus mainly on solving environmental problems. This is a consequence of managers’ awareness of the need to protect the environment. This is the main thing due to the need to maintain a healthy environment for the next generations of people, animals, and plants on the planet.

Finally, if we divide all the indicators that we recorded during the research, according to the triple bottom line model, we obtain the following Figure 4:

As many as 65% of all indicators have an environmental character, 34% have a social character, and only 1% show indicators of an economic nature. The ratio of indicators from our research based on the triple bottom line is, therefore, 65:34:1, while the ratio of indicators based on GRI reporting (G3 guideline) from the perspective of the triple bottom line is 38:51:11.

Conclusions

Sustainability requires a holistic approach to business activities and needs. For this reason, the fulfillment of sustainability goals, even in small businesses, is a very complex and demanding process. In their decision-making process, managers should deal with the problem of multi-criteria selection of what to prioritize. We believe managers must also deal with the analysis and effects that can translate into corporate sustainability commitments and performance through a series of sustainability indicators. The presented survey carried out in 79 enterprises in Slovakia gave us a picture of the state of recording indicators of sustainable development in practice. Each business was characterized by different indicators that needed to be recorded. The survey showed that businesses, in general, focused mainly on solving environmental problems. This is a consequence of managers’ awareness of the need to protect the environment [39].

Survey: the sustainable development of manufacturing enterprises in Slovakia

Main research results obtained from primary data:

• Within the scope of the short questionnaire, Awareness of managers in production enterprises of the Slovak Republic, basic data on the perception of sustainable development and socially responsible business (as a sub-field of sustainable development) in production enterprises in the territory of Slovakia was collected. With regard to manufacturing companies, 301 managers took part in the survey and answered questions regarding the management’s relationship to self-development and socially responsible business. This survey aimed to determine whether the managers of manufacturing companies know about corporate social responsibility and sustainable development and whether they use indicators to assess the degree of the company’s sustainable development. Small businesses had the highest number based on the size of the company, exactly 40.53%. Large enterprises represented only 11.96%.
• The first supporting question in the questionnaire was to find out whether the managers of manufacturing companies were familiar with the term socially responsible business. Managers who knew corporate social responsibility represented 71% of the total, and 29% of managers had not encountered this concept.

The evaluation of a questionnaire survey: the sustainable development of manufacturing enterprises in Slovakia:

• The questionnaire focused on the holistic mapping of Slovak manufacturing enterprises’ existing states of sustainable development. The collection was conducted from June 2020 to November 2021. The collection of responses took place during the COVID-19 pandemic, which was the reason for the extension of the return period.
• The questionnaire primarily contained questions directed to specific activities and facts as well as evidence confirming whether or not the company acts within limits set forth by sustainable development. The descriptive statistics of the main questionnaire, Sustainable development in manufacturing enterprises in the Slovak Republic, included the necessary statistical sample of 383 returned questionnaires for the evaluation of relevant results using the Raosoft software with a 95% confidence interval and a 5% limit of the permissible error. The largest representation of enterprises based on the nature of the production was the production of metals and metal structures, excluding machines and equipment, up to 54, which represents 16.98% of the total sample. The clear reason for the highest representation in the sample of this industry is precisely the high number of enterprises in Slovakia belonging to this industry. Specifically, out of a total of 79,096 manufacturing enterprises, up to 32,095 (i.e., 40.58%) belong to the manufacturing of metals and metal structures, excluding machines and equipment, and it is the largest industry in Slovakia. In the second place, there is a large representation of the industrial production of wood and paper products and printing, from which 47 questionnaires were obtained, with a percentage representation in the sample of 14.78%. Likewise, this industry is the second most numerous industry in Slovakia, and it consists of a total of 15,035 enterprises (i.e., 19% of the total industrial production) (

  Table 6. Companies’ countries of origin participating in the questionnaire, Sustainable development in manufacturing companies of the Slovak Republic [40].

  Companies’ Countries of Origin	Numbers of Companies	Percentage Representation
  Slovakia	196	61.64%
  Germany	59	18.55%
  Austria	25	7.86%
  Czech Republic	19	5.97%
  South Korea	7	2.20%
  USA	4	1.26%
  Japan	3	0.94%
  Ukraine	2	0.63%
  Denmark	1	0.31%
  France	1	0.31%
  Sweden	1	0.31%
  Total	318	100%

  ).

• The other part of the questionnaire focused on specific facts and evidence in the given production enterprise’s field of sustainable development. The first question was aimed at finding out the level of managers’ identification with the need for sustainable development in their company. An important finding from the answers to this question is that 35.22% of managers do not have sufficient knowledge about sustainable development and sustainable business direction. This information represents a significant problem because low knowledge dampens the motivation of managers to implement elements of sustainable development in corporate activities. In doing so, it is essential that managers at the strategic level know of and are identified with the necessity to ensure the sustainable development of the company. The implementation process also includes the continuous addition and consolidation of the knowledge of all managers, as well as the company’s employees, about sustainability and sustainable development.
• Answers in which managers stated 100% knowledge about sustainable development and the sustainable direction of the company were represented 31 times. Most companies were of Slovak origin (52%). In second place, companies of German origin presented managers’ answers that showed 100% knowledge (Figure 5) [40].

6.4. Perception and Feeling of the Need for Orientation toward the Sustainable Development of Managers’ Perspectives

The managers of all the companies in which the interviews were conducted knew the term sustainable development and were identified with its use. In some cases, managers focused on the sustainable development of the company for several years (at most 10). For management, the integration of elements and principles of sustainable development is a necessity, especially due to constant incentives and challenges from the state for more sustainable, “greener” production. Managers think that, sooner or later, the conditions (especially of an environmental nature) for production will become stricter, and therefore, it is better to avoid sudden measures and start preparing for this situation in the meantime. Management interventions themselves have a wide-ranging impact on the overall operation of businesses. They are primarily focused on the production process and its impact on the environment but also on employees and society [40].

Conclusions

Hypothesis 2 was confirmed. This hypothesis concerned the mapping of the current state of Slovak SMEs regarding sustainable development and the mapping related to specific activities and areas of sustainable development. SMEs recognize that sustainable development is a necessity, and SME activities in this area are a step in the right direction. Slovak SMEs focus on a wider range of topics in the field of sustainable development, not only environmental protection but also economic and social issues and challenges. This is the right approach. We can state that the results presented in the surveys that we used for our theme of sustainability and sustainable development are positive, even slightly optimistic, regarding the future; thus, our hypothesis was confirmed.

6.5. Limitations of the Results and Future Research in Sustainability

The results and prospects of the Slovak Republic and Slovak SMEs in the field of sustainability for the future are as follows: the data and findings that we present and evaluated in this paper come from a limited number of organizations in the Slovak Republic, so the conclusions we present take this fact into account. For example, a longitudinal study would help in this context, which could provide better insight into this research area as it allows for an investigation over a longer period. However, as regards the overall assessment in the area of sustainability in Slovakia, we can state that we see a good trend in this area. We see and monitor increasing pressure from international institutions, government institutions, as well as constant incentives and challenges from the state for more sustainable production in Slovak enterprises. Moreover, there is pressure from non-governmental, ecological, and other organizations in this area, as well as increasing public pressure in the field of sustainable development.

7. Current Management and Its Characteristics

In this contribution, we also devote a small area to the critical situation in the global market economy due to the accumulation of several crises. We describe some characteristic features of contemporary management. This chapter is our contribution to a broader context because it is necessary due to the topics we address in the contribution. We briefly describe the current management in the defined space and its characteristic features, changes, and trends we observed in both a market and management context. We also pay attention, in part, to the context of the current management.

We briefly describe the current management, its characteristic features, changes, and trends that we observe in the market and management. These changes and trends in management naturally also apply to SMEs, which we cover in detail in the article.

It is a common practice for companies to work almost all the same, with some exceptions and with only minor changes. Businesses do not change their usual procedures, methods, management systems, or used methods. That is a fact; there is inertia in running a business. However, today’s business in the 21st-century global market requires something completely different than inertia, certain stability, and consistency in business management methods. With the advent and gradual promotion and expansion of globalization in the 20th and 21st centuries, the unprecedented acceleration of scientific and technological development, and the rapid and constant expansion of technology and information and communication technologies, the external conditions for businesses in the global market are changing. There is a significant amount of real change. It is necessary to emphasize and repeat the fact that globalization and the rise of technology have become the main megatrends of contemporary civilization. It is a fact that the conditions for doing business in the 21st-century global market have changed. This change is so profound that, according to G. Hamel, change is the very core of management for the 21st century, and this fact has a major impact on management and corporate governance. Moreover, for this reason, companies must and will naturally change and respond to these changes in the external environment to adapt to changes in the market. Management is also changing, as management naturally and necessarily responds to these ongoing changes.

7.1. Business Transformation

The company is simply sometimes forced by external and internal facts, circumstances, changes in the market, etc., toward its transformation. The necessity of a business transformation may arise, for example, because of emerging and persistent unresolved problems, new challenges coming from the market, or new trends and changes in the external environment. Transformation can concern, for example, the company’s strategy, company structure, and business processes, but there are also changes in the approach to business management, employee management, employee attitudes, the innovation potential of the company, etc. The goal of the transformation is to enable the company to better adapt to the turbulent market of the global economy, new technologies, new challenges, and the magnitude and speed of the change itself, which is generally taking place in the market and is the core of management. This transformation is to ensure the efficient operation of the company in a dynamic market environment; this is very important. Changing and transforming a business sometimes means fundamentally and radically rethinking and rebuilding business processes to change or improve them. One of the changes that are gradually taking place is as follows: companies will learn more and constantly educate and train their employees. Staff training and coaching are becoming increasingly important necessities. Employees need to be encouraged to improve processes, think beyond the current established conditions in the company and the current established processes, and improve and innovate everything that can be improved in the company. Quality, productivity, and innovation should be important aspects of work, job evaluation, and employee performance.

Based on the monitoring of the external environment, management, if necessary, changes, innovates, and adapts its strategy, management, and corporate culture to the current market environment, with the sole purpose of maintaining competitiveness in the turbulent and unstable environment of today’s global market economy. Management uses such changes to initiate and support employee creativity, innovation, and improvement and to implement the necessary changes in their corporate culture. In the context of today’s market economy, good management means change management: management that adapts to change. This is a very important fact; quality management is change management. So, changes in the market and management’s approaches to corporate governance are fundamental and necessary. The key is the adaptation of companies. Change management is not part of traditional business management. This type of management has been overcome by dynamic and turbulent economic and societal developments and by the rapid development of technology and global competition, as well as unforeseen changes in the market environment. For example, managers who more or less ignore an extensive and developed network of relationships with customers, suppliers, and other stakeholders run the risk of problems that can lead to stagnation or bankruptcy. For companies to remain competitive, it is not enough to implement low costs, lean management, increase productivity, and step-up value creation. Strategies and disgraces, such as enterprise restructuring and cost reduction, are very widespread; their goal is to ensure efficiency and performance and, thus, competitiveness, but many companies have already reached their limits. Current management concepts focus on the company itself and the internal environment of the company; meanwhile, market dynamics, the dynamics of new technologies, the quantity and frequency of changes, and market competition are growing, and the state and level of knowledge about modern management in a company are insufficient. Modern management presupposes far-reaching knowledge of the context. We emphasize the context of current management in the 21st century. It is necessary to know and understand the context and knowledge of changes and market dynamics that fundamentally affect the company in a turbulent market environment. This knowledge and understanding of the context are realized through a management system called change management.

One of the important responses to these changes is the adaptation of companies, and as part of this adaptation, one of the steps requires an ever greater and broader focus of the company on the customer.

7.2. The Current Market Economy and Current Management Changes

The current market economy is dynamic, turbulent, and characterized by many changes. The changes are so significant that they are at the very core of management for this century. There are many changes; examples include the following: continuing globalization, the unprecedented and accelerating development of technologies, as well as information and communication technologies, the constant shortening of product development time, the growth of information needed for business management, and the need for innovation. Selected changes, market trends, current management, and requirements for companies are displayed in the

Table 7. Selected changes, market trends, current management, and requirements for companies. (Source: Authors).

SELECTED CHANGES, MARKET TRENDS, CURRENT MANAGEMENT

Globalization

Technologies in general, as well as Information and Communication Technologies—their unprecedented rapid development and expansion

Digitization, Automation, Robotics

Hyper competition (strong competition in the global market)

Innovations (product innovations, innovations of principles, procedures used in business management, innovations of management systems, etc.)

Modern management systems (for example, knowledge management), their need for application in the company

CURRENT REQUIREMENTS FOR CURRENT COMPANIES

Necessary internal adaptation of the company to changes in the market, changes in the external environment

Constantly continuing reduction of product development time

The need to initiate and implement innovations, product innovations, procedures, methods, and systems in the company

The quality of products and services is a matter of course

Increasing the amount of information needed for business managementThis fact is related to the complex, complicated turbulent environment of the global market economy, as well as to the growing complexity of technical systems and equipment

Pressure on prices of products and services, pressure to reduce costs in the company

With the rise of information systems in the company, the growing importance for the company is constantly growing

The need to monitor the external environment

Increasing quality requirements for employees

Increase the efficiency and effectiveness of business processes to maintain and strengthen competitiveness—A quality product or service is the output of business processes

Training and staff development

Change of corporate culture, corporate culture oriented to changes and adaptation to changes, corporate culture oriented to quality

Change of organizational structures, their transformation into area organizational structures

.

In the

Table 8. Selected characteristics of a small industrial enterprise. (Source: Authors).

SELECTED CHARACTERISTICS OF A SMALL INDUSTRIAL ENTERPRISE

In a small company, the professional level of management is lower compared to, for example, large companies. Managers in small businesses often lack professional knowledge, skills, and management information. Managers in small businesses, compared to managers in large businesses, lack a broader professional background and a systemic view of management

In small enterprises, long-term strategic planning is often absent, as well as monitoring of the external environment and monitoring of market developments; in small enterprises, short-term, operational planning prevails

Organizational structures in small enterprises are simple, with fewer requirements for all types of resources (financial, human, material, information), organizational structures are simpler and smaller compared to larger enterprises; that fact is also related to the minimum number of management levels in a small enterprise

Employee management is challenging because one of the important characteristics of small businesses is the accumulation of functions. The cumulative functions are significantly greater in a small company than in larger types of companies

Small businesses are in many cases family businesses, which is reflected, for example, in greater mutual trust, there are legally better communication options

The overall documentation requirements in a small business (scope, structure, quantity, complexity) are lower than in larger types of businesses

The character of a small business also determines the requirements for the size and structure of processes and activities (simpler processes and activities compared to larger companies)

Decisive responsibilities and powers are centralized in the hands of the owner, the manager, or managers authorized by the owner. This procedure is acceptable and suitable only for a specific size of the company

A small business has less money at its disposal than larger businesses

In small businesses, an authoritative management style often prevails. Easier information and communication flows, communication between employees is mostly personal. Small businesses do not have to use information and communication technologies to communicate with employees to the same extent as larger companies because communication is mostly direct and personal

In small businesses, direct, personal contacts between the owner or manager with customers and suppliers predominate

Small businesses are inherently more flexible. They can respond more flexibly to all new stimuli and changes coming from the market

Insufficient market research, insufficient information, and marketing knowledge are the hallmarks of many small businesses

Small businesses have limited resources needed to finance their development

Small businesses are characterized by the fact that they specialize more in a particular production, so their product range is smaller compared to large companies

Small businesses often specialize in the core and often the only subject of their business so that they can produce high-quality products in their market segment

Small businesses have a better understanding of all the important conditions for doing business and selling products in a particular city or region, so they can better adapt to these conditions; this fact can bring small businesses business success and economic profit

Small businesses often have only a regional reach, which is why they naturally have fewer customers compared to larger types of businesses

, we have focused on a brief description of important selected characteristics of a small industrial enterprise (Source: Authors).

The comparison of characteristic features of the quality management systems in small- and large-sized businesses

In

Table 9. The comparison of characteristic features of the quality management systems in small- and large-sized businesses [41].

The Comparison of Characteristic Features of the Quality Management Systems in Small- and Large-Sized Businesses
Small-sized businesses	Large-sized businesses
The most used model of small-sized business management: the business is run by one manager—the owner. The other managers are hired. All the competence is in the hands of the owner. The managers, as well as the other employees, have no or only limited chance to comment on these issues. The power is in the hands of a limited group of people.	The management of a large-sized business is a process in which processes, employees, and workplaces are arranged into an optimal organizational structure to meet all the needs of both their customers and all the other interested parties. The responsibilities and competencies are the preconditions to meeting the set goals.
The quality management system in small-sized businesses is specific mainly in accumulated responsibilities and competencies.	Large-sized businesses have detailed processes of quality management system implementation. They take advantage of disposing of a sufficient number of professionals in each management area. Their staff covers all management systems.
When making decisions about establishing the quality management system, many small-sized businesses have no conception of what is to be ensured (all the necessary sources) to make the system functional.	Large-sized businesses have the necessary sources (financial, personnel, material, information) to ensure a quality management system.
On the one hand, small-sized businesses show flexibility that enables them to flexibly adapt to rapidly changing entrepreneurial conditions to larger types of businesses. However, on the other hand, they lack the sources necessary to promote their own development and to improve all the processes and activities in a small-sized business. They also lack sources to ensure the QMS.	Large-sized businesses gradually meet the set strategy by meeting partial objectives. Compared to small-sized businesses, they are less flexible, which is caused by their size and more complicated management. They have the necessary sources to fulfill the business strategy.
Some of the small-sized businesses have become suppliers for larger businesses. However, they must meet their requirements involving the quality management systems, their certification, etc.	Large-sized businesses are progressive in the implementation and continual improvement of their quality management systems.

, we present several characteristic features of small-sized businesses and their management. The advantages and disadvantages that influence their quality management activity are presented as well. The small-sized business features are compared with the quality management in large-sized businesses.

8. Internalization of SMEs

The internationalization of companies is a concern of large companies, but it is also a concern for small- and medium-sized enterprises, which perceive and understand globalization as an opportunity for their growth. They are, therefore, forced to adapt to globalization, which naturally brings risks for businesses as well. They have to adapt via a good strategy to the changing conditions in the global market.

Why support the internalization of SMEs?

• International active SMEs have:

  -

  A higher turnover;

  -

  Far higher employment;

  -

  Higher innovation capacity.

• A solid source of economic growth in the current economic crisis.

Objectives of the EU Entrepreneurship Strategy:

• Provide SMEs with easily accessible and appropriate information on how to expand their business outside the EU.
• Improve coherence between support activities.
• Increase the cost-effectiveness of support activities.
• Eliminate existing shortcomings in support services.
• Create a level playing field and ensure equal access for SMEs from all EU Member States.

Tools:

• Mapping the environment of support services at home and abroad.
• Providing information close to SMEs.
• Provide a European dimension to the provision of services to SMEs in priority markets.
• Support for SMEs through the internationalization of clusters and networks.
• Applying the internationalization of SMEs in other EU policies and creating a favorable environment for the internationalization of SMEs.
• Support for SMEs through the internationalization of clusters and networks:
• Partnership events between clusters, SME clusters, export consortia, and countries outside Europe.
• Project “Support for international cluster activities in Europe”.

Advantages:

• Use of contacts, business contacts, and formal and informal knowledge circulating within clusters and business networks.
• Development of partnerships and business activities abroad (e.g., public procurement).
• Easier access to global value chains.
• Tailor-made professional advice, acquiring the necessary skills.

Development of strategic associations with research organizations in partner clusters [42].

9. Conclusions

In this paper, we focused on the topic of sustainability and sustainable development. Humanity’s prospects for the future are problematic and very contradictory based on current as well as long-term developments. The future of humanity is full of risks and uncertainties not only in the economic but also in the environmental and social spheres. The reason for such a statement is the fact that the great problems and great challenges of our civilization are accumulating. It is, therefore, essential that companies optimize all their processes and develop their activities toward sustainability, and governments and all major social partners in each country must work together to develop and integrate the three basic pillars of sustainable development effectively: economic, social, and environmental. Synergies need to be created between these three components of sustainable development.

In this paper, we have theoretically and practically dealt with the topics of sustainability, both in Slovak companies and sustainable development in Slovakia as a whole. For this reason, we established two assumptions and two hypotheses related to sustainability and examined and evaluated the research carried out in this area in Slovakia. The results found were as follows: the Slovak Republic recorded a positive development in the field of sustainable development over the last period; specifically, there was a positive shift in the index of sustainable development. Our assumption, as well as our second hypothesis, was also confirmed. This hypothesis is related to mapping the approach of Slovak SMEs in the field of sustainable development. Access mapping in this area was related to specific activities and areas of sustainable development. Slovak SMEs recognize that sustainable development is a necessity and the activities of SMEs in this area are a step in the right and necessary direction. Slovak SMEs focus on the main range of topics in the field of sustainable development, not only on environmental protection but also on economic and social issues and challenges. This procedure is correct; the approach of companies to sustainable development requires this comprehensive approach. We can state that the results presented in the surveys that we used in the analysis and evaluation of sustainability and sustainable development are positive, even slightly optimistic, for the future.

Product quality, the quality of services provided, the quality of management in the company, the quality of business processes, and sustainability are very important areas of management in every company. These areas are key to the business itself, its competitiveness and prosperity, and form a holistic basis for an efficient and successful business. Today, quality is understood as a business phenomenon; the quality of products and services is a pillar of business and economic success of the company in the market. Managers and employees need to understand this. In this paper, we also dealt with the topic of quality management in a small company because the system of quality management in small companies is demanding but very necessary. Small companies have several disadvantages compared to large- and medium-sized companies, e.g., necessary cumulative functions and fewer resources (financial, information). These disadvantages are also reflected in quality management in small businesses. This paper also briefly dealt with current management and described its characteristics and changes in the 21st century. In this paper, we dealt with selected changes in the market and important requirements for companies at present. Small- and medium-sized enterprises are a key part of every national economy. Due to their importance, it is, therefore, necessary to pay due attention to them, so we addressed these types of companies in our topic in several topics and areas.