Identification of Financial Strategy in Small and Medium-sized Entrepreneurship

Abstract

This paper deals with the importance of financial strategy development of small and medium-sized enterprises (SMEs) in the winery industry. The main objective of the paper is to identify the current financial strategy of small and medium-sized enterprises and afterwards to propose changes that lead to new financial strategy. The research methods are the selected methods of financial analysis, collecting data about the research sample of SMEs, modelling the financial strategy with the help of Vensim program and further simulation of this model in business practice. The model derives from the previous research activities. The purpose of this paper is also to verify the usage of theoretically created model in small and medium-sized entrepreneurship and find the optimal financial strategy in the area examined. The results of this paper show the selected area of small and medium-sized entrepreneurship uses mainly the financial strategy of maximum liquidity (conservative strategy) in all observed years (2010)(2011)(2012)(2013)(2014). This means the selected research sample of SMEs do not use progressive investment strategy with a further development. This result could highlight that SMEs in agricultural sector do not meet the financial strategy with corporate strategy focused on other business development. It is recommended to change this strategy into balancedfinancial strategy focused on higher profitability that could be used for the other expansion and development of the company.

Sustainable Manufacturing Practices and Sustainability Performance: A Conceptual Framework for Manufacturing SMEs

“…SMEs can be defined as firms with a sales turnover not exceeding RM50 million or employment not exceeding 200 workers. In Malaysia, SMEs comprise 98.5% of total business establishments (SMECorp, 2019), meaning that any business or economic turmoil will unavoidably impact various SME sectors and national economic progress (Svatošová, 2019). SMEs are thus the backbone of the economy and the second largest sector contributing to national gross domestic product (GDP) growth after the services sector.…”

Verification of Strategic Management Process Model in SME into Practice

“…The purpose of this paper is to verify the proposed process model of strategic management in small and medium-sized entrepreneurship into practice with a help pf model simulation on the example of selected enterprise. This model derives from the previous research activities exploring the quality and importance of strategic management for strategic development among selected research sample of SMEs [12,14]. This research also identified the determinants of strategic development [12].…”

Financial strategy and the process of the internationalization of enterprises

“…The value of the research includes determining the strength of the impact of individual factors on the financial strategy in stable conditions and in conditions of economic turmoil. In the existent literature on the subject, only one attempt has been made to evaluate the financial strategy based on empirical research (Svatosova, 2017). The sample in that study concerned small and medium enterprises from the agrotourism sector, and included 21 observations in the period 2010-2014.…”