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

• Main Authors: Jan Dvorsky, Jaroslav Belas, Beata Gavurova, Tomas Brabenec
• Format: Article
• Language: English
• Published: Taylor & Francis Group 2021-01-01
• Series: Ekonomska Istraživanja
• Subjects: small and medium-sized enterprises; business failure; business environment; business risk; companýs future
• Online Access: http://dx.doi.org/10.1080/1331677X.2020.1844588

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.