The worldwide surveys indicate that many enterprises still fight with the application of corporate risk management. Problems with the risk management application are observed in the Slovak enterprises, too. According to our survey, just the market risk is one of the most important risks of SMEs in Slovakia especially when they do not manage it sufficiently. They do not deal with conditions or the preventive measures which could reduce or prevent the problem. The aim of this paper is to present the results of the survey oriented on the business risks faced by the SMEs in Zilina region with a special focus on the market risk and proposing the methodology of enterprise risk management for more effective market risk control. The analysis of the market risk is carried out through the analysis of the selected statistical characteristics using the point and interval estimates and other methods of mathematical statistics. The results of the survey showed that the influence of the market risk on value of the SMEs in Slovakia should not be underestimated.
This paper is focused on the financial situation of enterprises introducing safeguard procedure (in other words moratorium) in the Czech Republic. The paper’s aim is to show if the enterprises asking for the safeguard procedure do have financial conditions for recovering and maintaining the going concern principle. The safeguard procedure should help the enterprise to solve their problematic situation because it protects them against creditors for the court approved time period. The safeguard procedure cannot be successful when the financial situation is extremely poor and therefore this paper analyses the enterprises’ financial situation upon applying for safeguard. The situation is evaluated using bankruptcy models, such as Altman Z-Score, Kralicek Quick Test, IN 99 and IN05. The evaluation is conducted in different time moments, specifically one year, two years and three years before implementing the safeguard procedure. Results for the individual enterprises are summed up by basic descriptive statistics as mean, median, low and upper quartiles. The results show that the financial situation of most enterprises was very poor before introducing the safeguard procedure and it had deteriorated during the years before.
The aim of the paper is to define important credit risk factors in the SME segment, find out how entrepreneurs evaluate these factors, and quantify the differences in their evaluation based on the enterprise's age, gender and attained education level. An empirical research was conducted in relation to the defined aim. 1,141 responses were received by means of the online questionnaire. To process the results, the two-sample t-test was used. Statistical tools such as histogram, Q-Q graph, z-test, and goodness-of-fit tests were applied to verify the assumptions. The results indicate that small and medium-sized enterprises perceive credit risk more intensively in comparison with the pre-crisis era. It was also discovered that the SMEs' knowledge of credit criteria is somewhat low. Entrepreneurs also state that banks' credit criteria are not very transparent. Based on the findings, the length of operating a business has a significant influence on the evaluation of credit risk factors. Experienced entrepreneurs, meaning those operating a business for over 10 years, have a more intense perception of the significance of credit risk, they also have better knowledge of banks' credit criteria, and view credit criteria as more transparent than beginner entrepreneurs.
This paper empirically investigates financial constraints experienced by innovative small and medium enterprises (SMEs) in the context of Visegrad countries: Czech Republic, Slovak Republic, Hungary, and Poland. At first, we examine whether innovative (product and process innovation) SMEs seek more external finance than the non-innovative firms and then we examine the likelihood of being successful with a loan application. This study uses the dataset from the Business Environment and Enterprise Performance Survey (BEEPS V), which was conducted by the World Bank and the European Bank for Reconstruction and Development (EBRD) during the period of 2012-2014. With respect to firm-level analysis, we find that innovative SMEs are likely to seek external finance to support their innovative ideas but the results are not statistically significant. We also did not find any evidence that innovative SMEs experience more credit constraints as compared to noninnovative firms. However, a country-level analysis suggests that firms in the Slovak Republic and Hungary are more likely to seek external finance for process and product innovation. Further, we find that mature firms, firms having audited financial statements, and risky borrowers are highly likely to apply for external finance while service-oriented firms are less likely to apply for bank finance. Finally, we find that loan application of the experienced borrowers and service firms are more likely to be accepted.
ABSTRACT. The ageing of the population is considered to be a cultural and social problem of developed countries. This is not, however, only a demographic problem, as it reaches into the functioning of the entire state economy, especially in the area of expected decline in numbers of people of productive age and employment connected with it, the increase in numbers of inhabitants of retirement age and pension reforms connected therewith and, for instance, healthcare costs. The period of retirement is gradually extending, but it also leads to increase of life expectancy and time lived without significant health restrictions. The problems of ageing will probably first appear in countries with a high proportion of industry and construction in the GDP. Economies with a high proportion of services will be affected to a lesser degree. The Czech Republic is a classic example of a country based on industry and construction. It is therefore probable that it will face an unsolvable problem in the near future, as the nature of its economy will be at variance with its demographic structure. It raises a question of this problem can be solved by supporting immigration.
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