How Do Entrepreneurs Feel Bankruptcy?

Abstract

Bankruptcy risk is always a constant threat to the SMEs, which determines how long the firms will survive. Since its identification, management, and control vested in the hands of the entrepreneurs and managers. A lot depends on their interpretations and beliefs. Therefore, to investigate this phenomenon, the present study aimed to investigate the attitude of the managers and entrepreneurs towards bankruptcy risk and to draw the conclusion on how the entrepreneurs’ attitude differs among the Czech Republic and Slovak republic entrepreneurs as well. The study was conducted among 822 small and medium-sized companies from the Czech Republic and Slovakia. Chi-square and z-score test methods were used to test for the existence of a statistically significant difference between bankruptcy attitudes among Czech and Slovak entrepreneurs. Slovak entrepreneurs are more likely to regard bankruptcy as a natural part of the business, and they are less likely to identify an entrepreneur’s mistake as the cause of bankruptcy. An important conclusion is that the experience of bankruptcy for entrepreneurs of both countries is assessed as a vital experience gained, which, however, negatively affects the self-esteem of an entrepreneur. This study contributes to the literature by offering insights over the attitude of SMEs’ owners and entrepreneurs about bankruptcy risk in the context of the Czech Republic and the Slovak republic. From the policymakers’ viewpoint, it is imperative to understand the attitude of SMEs’ owners and entrepreneurs to design effective policies aiming to improve entrepreneurs with adequate skills, ability, and state support. The Originality of the paper deals with the entrepreneur’s perception, behaviour, and attitude towards bankruptcy risk in SMEs.

The impact of the COVID-19 crisis on the perception of business risk in the SME segment

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Circular economy as a strategic option to promote sustainable economic growth and effective human development

“…The concept of human development is linked in a compatible and complementary way to human rights rights (e.g. Habanik et al, 2020;Khan et al, 2020;Kinnunen et al, 2019;Bagirova & Notman, 2020). If human development aims to expand the possibilities and freedoms enjoyed by members of a community, then human rights are an approach to improving social structures that facilitate or ensure these possibilities and freedoms.…”

The Perception of the Market and Operational Area of Business by Service Sector and Tourism Companies in terms of CSR implementation

“…CSR activities are now part of the long-term strategic goals of the firms. Since the responsibility to frame effective CSR activities which can benefit firms and can help the firms to achieve their desired objectives is on the key people at the top-level management in the firms such as Managers and owners, because they are the planners and decision-makers (Khan et al, 2020;Androniceanu, 2020;Sahut et al, 2019). Entrepreneurs'/owners' personal choices are critical in developing a responsible corporate strategy and expressing their social objectives (D'Andrea & Montanini, 2015).…”