Risk Assessment of the SME Sector Operations during the COVID-19 Pandemic

Abstract

The subject matter of the article relates to the assessment of the perception of selected types of risk in economic activities of the SME sector, which change their intensity as a result of the outbreak of the COVID-19 pandemic. The current economic downturn is unprecedented and involves many companies and industries that have faced new, previously unknown challenges and threats. The objective of the article is to identify the most important risks and their resources based on the empirical research carried out in small and medium-sized enterprises in Poland. The formulated objective was accomplished using the data collection method, i.e., the survey and reports on the condition of the SME sector in Poland as well as statistical data analysis methods, i.e., structure index and the analysis of variance, using the SPSS system. The process of primary data collection was carried out by means of an electronic survey among selected enterprises of the SME sector, conducting business activities in Poland. In the study, the employment factor was taken into account as a determinant of the perception and assessment of the intensity of selected risks arising from the economic activity in the Polish market in the conditions of the current economic downturn. On the basis of the obtained results, the impact of market, economic, financial and operational risks, depending on their intensity, on the functioning of micro-, small and medium-sized enterprises was identified. Based on the analysis of variance, the effect of the size of the company on the level of individual risks was also examined. As a result of the observations made, it was established that, during the pandemic, the level and type of risk is similar in all the surveyed enterprises. They are most often threatened by strong competition in the industry, an increase in energy prices and insufficient profit. The overall results of the empirical research indicate the importance and the need to manage the key threats to the Polish SME sector.

Start-ups’ business model changes during the COVID-19 pandemic: Counteracting adversities and pursuing opportunities

“…It is noted that small businesses are faced with an unprecedented negative impact on their operations ( Liguori and Pittz, 2020 ) and are at risk of running out of cash ( Cowling et al, 2020 ). Similarly, it has been found that smaller firms face greater market, economic, financial and operational risks ( Grondys et al, 2021 ), and are likely to reduce R&D and innovation given the crisis ( Roper and Turner, 2020 ). SMEs and start-ups face a ‘strategy/funding chicken-and-egg-problem’ ( Eggers, 2020 : 206), where there are insufficient resources available to pursue strategies that would protect or enhance firm performance.…”

Empirical Evidence on Circular Economy and Economic Development in Europe: A Panel Approach

“…Banaitė (2016) demonstrated that circular economy decreased the use of natural resources, while the consumption of energy rose, leading to increasing pollution (Ionescu, 2020;Nekmahmud et al, 2020). Beneficially, circular economy has shown to maintain the value of recycled materials, while the generation of waste has been minimized (Bayar et al, 2020;Borocki et al, 2019;Çera et al, 2020;Grondys et al, 2021). To continue as before, the exploitation-production-disposal economy should consume the resources of three planets Earth by 2050 (Stott et al, 2010).…”

Supply chain sustainability risk decision support model using integrated Preference Selection Index (PSI) method and prospect theory

“…Despite its significant contribution to the GDP of the global economy (Obi et al, 2018) and serving the role as a sector absorbing workforce (Ghergina et al, 2020), small and medium enterprises (SMEs) owing to its various limitations such as limited human resources, financial and technological know-how (Smith and Wakins, 2012;Wosche et al, 2017) are vulnerable to the impact of business crisis (Grondys et al, 2021). In line with the vulnerability of the SMEs The current issue and full text archive of this journal is available on Emerald Insight at: https://www.emerald.com/insight/0972-7981.htm operation against the impact of business risks (Verano and Venturini, 2013;Vladic, 2015), creating an improved risk evaluation methodology suitable for the SMEs is believed to increase their business sustainability.…”

“…, 2020), small and medium enterprises (SMEs) owing to its various limitations such as limited human resources, financial and technological know-how (Smith and Wakins, 2012; Wosche et al. , 2017) are vulnerable to the impact of business crisis (Grondys et al. , 2021).…”