Abstract
The current hyper-competitive environment, rapid marketing tools, and modern techniques provide many opportunities for small and medium-sized businesses. Such opportunities could bring much in the way of rewards both for the individual companies and the wider economy. However, there are many threats associated with these business environments which cannot be overlooked. Small and medium-sized businesses are a significant stabilizing economic power within the European Union. Therefore, it is not surprising that small and medium-sized businesses competitiveness and their long-term stability are vital factors for European cohesion and development. This research aims to analyze risk management within small and medium-sized businesses, identify critical risk factors, and develop risk management, which could be applied to small and medium-sized businesses. The authors analyzed risk management's consequences and explained the variables as follows: ROA, Auditing, Controlling Management, Marketing, and Corporate Culture. Based on the research findings, the goal was to increase their interaction effectiveness, focusing on small and medium-sized businesses long-term stability and competitiveness. For achieving these aims, the paper provides two research questions and designs three hypotheses. This research was conducted from 2017 to 2020 on sample n = 432 EU small and medium-sized businesses. The reached data were analyzed by statistical method and experimental «in practice» testing. Based on the result and its experimental testing, a marketing risk management model was designed, tested, and verified using practical methods. This model could be used for the identification and avoidance of potential risks when developing a marketing strategy. The findings reached should be used to advance research and similarly for practical use within the business sphere.
Highlights
Small and medium-sized businesses (SMEs) are the backbone of the economy in today's world, especially in the economic environment, as de Araújo Lima et al (2020) mentioned
The secondary aim is to analyze consequences between risk management and explain variables (ROA, Auditing, Controlling Management, Marketing, and Corporate Culture) based on research findings increase the effectivity of their interaction with a focus on SME long-term stability and competitiveness
The same applies to SMEs, which are an important part of each economics
Summary
Small and medium-sized businesses (SMEs) are the backbone of the economy in today's world, especially in the economic environment, as de Araújo Lima et al (2020) mentioned. If the company deals with corporate culture and marketing plans, it manages its own future development and threats. Auditing and controlling are very tightly connected with the risk processes, on the one hand, and with the risk management, on the other hand. The validation of the risk management model, which uses audit and controlling to oversee corporate culture and corporate marketing threats, is what this paper is focused on. Risk management (Virglerova, 2018) could efficiently validate other business processes effectively, especially in the Industry 4.0 environment. Auditing and Controlling as a Tool for SME Marketing Risk Management. The threats mentioned above, connected with the SME area are risks, which appeared in this modern and quickly developing environment. An SME's approach to risk is dependent on its attitude to risk management (MikuSova, 2017; Kupec, 2018)
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