The differences in the impact of entrepreneurial abilities of various European SMEs on their financial risk perceptions

Abstract

The objective of the article is to investigate whether the impact of innovativeness and competitiveness of small and medium-sized enterprises (SMEs) on their financial risks differ depending on the countries where SMEs are located. Research Design & Methods:The researchers created an online questionnaire and gained data from 1221 Czech, Slovak, and Hungarian SMEs. Moreover, the researchers applied ordinal logistic regression analyses to achieve the goal of this study. Findings: According to the results, the impact of competitiveness on the bankruptcy risk perception of SMEs differ depending on the countries where they operate. Concerning the impact of innovativeness on financial performance and financial risk management, this article also proves that international differences between SMEs exist. Implications & Recommendations:The developments in the financial literacy of company executives and their managerial experiences and the improvements in credit access conditions, intellectual property rights, and tax legislation can make SMEs reduce their concerns about their financial risks. Thus, policymakers' implementations are crucial to providing equal opportunities for SMEs even if they operate in various markets. Contribution & Value Added: This current research does not only make international comparisons among the investigated variables but also analyses the impacts of entrepreneurial competencies on various indicators of financial risk. These facts not only make this research become a unique study in the literature but also the reason why it should garner the interest of prospective readers such as policymakers, academicians, and SME owners.

Financial Planning and Decision Making as Predictors of Financial Performance in Msmes

“…These results align with those obtained by Yadegaridehkordi et al (2023) who grounded their study in Predictors of environmental, financial, and social performance in SMEs; however, they only concentrated on studying manufacturing companies and their financial performance, without granting any importance to financial planning and decision making. Zubair et al (2020), Civelek et al (2022, Menne et al (2022), andAl-Mamary et al (2020) were able to find that funding is a determinant for investment, highlighting that reducing financial risks in MSMEs increases their financial performance and favors decision-making. The consulted literature indicates that there are positive relations between financial performance, funding sources, and financial orientation, to cite a few variables.…”

“…Therefore, funding type is a determining factor for investment. These authors have not considered every Various researchers (Esubalew & Raghurama, 2020;Fauzi et al, 2020;Menne et al, 2022;Al-Mamary et al, 2020;Chrysafis et al, 2024;Civelek et al, 2022;Yadegaridehkordi et al, 2023) highlight in their studies that financial performance in MSMEs and funding help achieve sustainable growth, with funding being a predictor for financial performance. This implies that they need to generate efficient financial planning to achieve capital growth, taking advantage of crises in the environment and having alternatives to invest liquidity, bringing together human resources and business diversification, permeating towards innovation and competitiveness which promote better financial performance.…”

Analisis Efektivitas Pengelolaan Anggaran Belanja Operasional Kantor Pencarian Dan Pertolongan Kelas B Nias

“…Dalam artikel Kementrian Keuangan RI Direktorat Jendral Pembendaharaan oleh Ruli Indra Kusuma yang diunggah pada tanggal 16 maret 2021, menyatakan bahwa persoalan anggaran masih terus berulang, dari segi perencanaan keuangan dan kegiatan, alokasi anggaran belanja Kementrian atau Lembaga yang kurang wajar, efisien, relevan dengan output/outcome yang direncanakan, sehingga tidak mendukung kelancaran pelaksanaan kegiatan (Civelek et al, 2022). Dari segi pelaksanaan, tidak sesuai dengan jadwal/atau rencana kegiatan maupun kebutuhan idealnya, realisasi penyerapan anggaran yang rendah, jauh dari pola ideal serta cenderung tidak proposional dan menumpuk di akhir tahun (Agyei, 2018).…”