Parametric Conditions of High Financial Risk in the SME Sector

Ślusarczyk, Beata; Grondys, Katarzyna

doi:10.3390/risks7030084

Cited by 19 publications

(23 citation statements)

References 57 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The effective risk management in SMEs is deciding to a large extent whether they are fit to survive in the market and contributes to the development not only of a company but also its market and social environment. At the same time, note the appropriate risk management requires a certain degree of risk perception in a given business environment, risk identification, planning and alignment of preventive measures, or risk management systems ( Slusarczyk & Grondys, 2019). The results show that financial risk has the most significant positive impact on a perception of the future (path coefficient -PC ¼ 0.16).…”

Section: Discussionmentioning

confidence: 95%

Business risk management in the context of small and medium-sized enterprises

Dvorský

Belás

Gavurová

et al. 2020

Economic Research-Ekonomska Istraživanja

View full text Add to dashboard Cite

The aim of this paper is to review the impact of entrepreneurs' attitudes toward the defined business risks on the perception of the future of small and medium-sized enterprises (SMEs). 454 SMEs from the Czech Republic (CR) participated in the research and completed an online questionnaire. Structural equation modelling and factor analysis were used to identify the causal relationships between the examined variables. Entrepreneurs' attitudes toward business failure also have a positive effect on the future of the SME. The perception of financial risk in positive indicators of financial performance and the perception of financial risk as part of the company's everyday life have the most significant impact on future business. Operational risk is reflected in the utilisation of corporate resources, reducing customer complaints about the quality of the company's products and the company's independence of a limited number of suppliers. The company's sales volume adequacy provides a source of market risk. It has the third strongest positive impact on the future business in the SME segment. The research results provide a valuable platform for the authors of national and regional development strategic plans looking for SME support and development as well as the authors of the relevant policies.

show abstract

Section: Discussionmentioning

confidence: 95%

Business risk management in the context of small and medium-sized enterprises

Dvorský

Belás

Gavurová

et al. 2020

Economic Research-Ekonomska Istraživanja

View full text Add to dashboard Cite

show abstract

“…Many SMEs do not apply risk management practices due to their limited resources, even though competent risk management reduces the risk of insufficient profit. Very often, SME owners do not pay attention to the implementation and development of risk management strategies and demonstrate an informal approach to their management, which significantly affects the level of generated profit (Ślusarczyk & Grondys, 2019). Hence, the approach SMEs adopted towards risk management is thus dependent on their attitude to sustainable development.…”

Section: Management Of Financial Risk In Smesmentioning

confidence: 99%

“…The growth and development of SMEs partly depend on how financial risk management is well-practiced in the organization (Belas et al, 2015b;Dobrovič et al, 2019;Belas et al, 2020), as it has been identified, the poor capital structure of SMEs is a major reason for their exposure to financial risks (Zhao & Zeng, 2014). With the business expansion and active decision-making, the cost of acquiring new technologies, processes, and supplies is the largest source of financial risk (Ślusarczyk & Grondys, 2019).…”

Section: Introductionmentioning

confidence: 99%

Financial risk management in the V4 Countries’ SMEs segment

Kotásková

Lazányi

Amoah

et al. 2020

Investment Management and Financial Innovations

View full text Add to dashboard Cite

The paper examines entrepreneurs’ attitudes towards chosen problems of managing financial risk in the V4 countries’ small and medium-sized enterprises. Financial risk has a significant effect on SMEs’ operations and their sustainability in the market. Entrepreneurs’ attitudes were quantified in terms of the defined aim, and a comparison of the differences in the intensity of these perceptions was made. An empirical investigation was accomplished in the V4 countries via an online questionnaire in 2020 (before the onset of the corona-crisis). A total of 1,585 valid questionnaires were obtained. The results were compared using Chi-squared and Z-score. Entrepreneurs in all V4 countries perceive financial risk correctly as an everyday part of their business activities. Their perceptions are very similar in all V4 countries. SMEs in the V4 countries evaluated the financial performance of their companies quite positively. Entrepreneurs in this research have a relatively high opinion of their financial risk management knowledge, which they presented accordingly. The research also revealed that Hungarian entrepreneurs, instead of those from the other three V4 countries, have a higher opinion of their financial risk capabilities. They highly evaluated their financial risk management knowledge and showed a higher self-confidence in managing financial risk.

show abstract

“…Overall, it can result in the rising operating costs, rising corporate debt, difficulty in debt repayment, and consequently, high financial risk (Korcsmáros & Šimova, 2018). It was indicated that both the internationalization of the company and the ability to manage risk are the only factors that affect a high level of risk of low income (Ślusarczyk & Grondys, 2019). The authors conclude that due to special characteristics of SMEs, the identification and measurement of SME financial risk should be different from the large ones.…”

Section: Literature Reviewmentioning

confidence: 99%

“…According to Ślusarczyk and Grondys (2019), any company, not only in the SME sector, should deal with the task of managing financial risk in the manner that will bring greater benefits to it. Based on the authors' opinions, an important part of the financial risk of SMEs CENTRAL EUROPEAN BUSINESS REVIEW is a higher share of foreign capital in their financing.…”

Section: Literature Reviewmentioning

confidence: 99%

The Perception of Business Risks by SMEs in the Czech Republic

Dvorský¹,

Kozubíková²,

Bacová³

2020

CEBR

View full text Add to dashboard Cite

This article aims to find out which business risks determine the perception of the business environment of small and medium-sized enterprises (SME) in the future. 454 SMEs from the Czech Republic participated in the case study by filling in an online questionnaire. Linear regression models were used to verify statistically significant causal relationships between selected indicators of business risks and respondents' perception of the future of business. The results show that selected indicators of the market, financial, personnel, legal and operational risk determine the perceived future of business. Strategic risk indicators do not significantly affect the perceived future of business. The most important indicators: market riskadequacy of sales of products and services; financial riskan indicator of the company's financial performance; personnel riskan indicator of employees' initiative to increase performance; legal riskan indicator of respondents' ability to understand the basic legal aspects and operational riskan indicator of the use of company capacities. All the indicators from above have a positive effect on the future perception of the company. Implications for Central European audience: The attitudes of small and medium-sized enterprises represent a certain degree of subjectivity (human factor), which does not always reflect the real position of the enterprise. However, it is the main representatives of SMEs (owners and top managers) who try to manage business risks to have a more positive perception of their future in the business environment in the Czech Republic. The results based on the business environment of the Czech Republic are important not only for the owners of SMEs, but also for state and non-profit institutions dealing with various forms of SME support.

show abstract

Parametric Conditions of High Financial Risk in the SME Sector

Cited by 19 publications

References 57 publications

Business risk management in the context of small and medium-sized enterprises

Business risk management in the context of small and medium-sized enterprises

Financial risk management in the V4 Countries’ SMEs segment

The Perception of Business Risks by SMEs in the Czech Republic

Contact Info

Product

Resources

About