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10.5593/sgemsocial2017/15/S05.060

IDENTIFICATION OF THE LEVEL OF BUSINESS RISK OF MATURE ENTERPRISES OF THE SME SECTOR IN POLAND AND SLOVAK REPUBLIC

A. Lemanska-Majdzik, E. Ivanova
Thursday 28 September 2017 by Libadmin2017

References: 4th International Multidisciplinary Scientific Conference on Social Sciences and Arts SGEM 2017, www.sgemsocial.org, SGEM2017 Conference Proceedings, ISBN 978-619-7408-17-1 / ISSN 2367-5659, 24 - 30 August, 2017, Book 1, Vol 5, 481-488 pp, DOI: 10.5593/sgemsocial2017/15/S05.060

ABSTRACT

The risk of conducting a business activity refers to all entrepreneurs, it is an indispensable element of the operation of organizations on the market. This also applies to mature enterprises which have a specific market position and are characterized by stable revenue growth and financial liquidity, and moreover, which have been operating in the market for more than 10 years and their main objective is to achieve competitive advantage. Such enterprises have features which facilitate the operation on the market, among others, the ability to compensate for risk while pursuing complex goals of an organization, which will certainly allow them to manage the business efficiently. The aim of the article is to review the selected subject literature and to identify and compare the level of risk among mature micro, small and medium-sized enterprises operating in Poland and Slovakia. The reasoning is based on the results of own research on a group of 233 companies which identify themselves as mature and have been operating in the market for more than 10 years. The study was conducted in 2016. The conducted analysis allows to compare the level of business risk of SMEs in the two countries and indicates whether the size of the company affects the perception of risk among mature enterprises with a stable competitive position and operating in the market for more than 10 years. The research, among others, indicated that business risk, according to the entrepreneurs, is higher in Slovakia than in Poland, and also that with an increase in employment in the company there is an increase in the awareness of entrepreneurs referring to business risk resulting from the business environment, however, interestingly, medium-sized enterprises indicate a lower level of risk of their activity compared to the companies employing up to 49 employees. For the companies employing more than 10 employees, in their business activity, there is a financial risk which is not identified by micro-companies. The novelty of this article is the identification and indication of the level of business risk of enterprises in international terms, in two countries, in comparable populations of the SME sector.

Keywords: business risk, mature enterprises, SME sector