Abstract
The aim of this article is to define and compare current trends within business risks among small and medium enterprises in selected regions of the Czech Republic and Slovakia in the context of entrepreneurial optimism. In 2013, the research on entrepreneurs’ opinions in the Zlin Region (Czech Republic) and Žilina Region (Slovakia) was conducted. These regions have similar economic parameters and are separated by only a few miles. According to our research, it can be stated that during the period of financial crisis, the situation in the SME business deteriorated significantly with declining performance and profitability of Czech and Slovak small and medium enterprises. The most important business risk is still market risk, followed by financial and eventually personal risk. Our research showed that the profitability of Czech and Slovak small and medium enterprises decreased by 15%. Despite these facts, the level of entrepreneurial optimism among SME in the selected regions of the Czech Republic and Slovakia is very high.
Highlights
Basic prerequisite for successful management and development of all businesses is a favorable business environment
Small and medium enterprises operate in more challenging economic environment, respectively, many of them struggling with their own survival
Small and medium enterprises have an irreplaceable contribution for economic growth, employment and competitiveness of each country but because of their size, they are sensitive to changes within external environment
Summary
Basic prerequisite for successful management and development of all businesses is a favorable business environment. It is represented by the environment, in which economic competition is supported and protected by state, which creates clear and stable conditions and ensures their compliance by all market participants, while minimizing administrative barriers towards entrepreneurs. The issue of business risks of small and medium enterprises (SME) represents current area of theoretical research and practical applications. Financial crisis and gradual recovery of economies in the European Economic Community brought deterioration of the business environment. Small and medium enterprises operate in more challenging economic environment, respectively, many of them struggling with their own survival. It is evident that all these risks are transformed to the financial management of enterprises
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