Abstract
The municipality generally uses its property to perform self-governing functions, and public or business activities. In the conditions of the Slovak Republic, the municipality operates either as a legal entity in its own name or carries out business activities with the help of a contributory and budgetary organization or business firm established by the municipality. Revenues from business activities form an important part of the revenue of local self-government budgets. The aim of this paper was an economic evaluation of the management of municipal firms at the level of rural local self-governments in the conditions of the Slovak Republic on the basis of selected economic indicators. At the same time, we analyzed the relationship between selected economic indicators in relation to the size, lifespan and number of employees of the firm. The analysis was performed in the time period 2015–2019 on a sample of municipal firms at the level of rural local self-governments. For the analysis, we used selected mathematical–statistical methods (Shapiro–Wilk test, Kruskal–Wallis test, and regression analysis). The analysis showed that the differences in the profitability of municipal firms from the point of view of the region in which they operate as well as from the point of view of the number of employees is not statistically significant. Statistical significance was not demonstrated even within the volume of revenue of municipal firms from the point of view of the region in which the municipal firm operates. The volume of revenues of municipal enterprises with the population of the municipality as well as the length of time of operation on the market is growing, but these are not the only factors on which these results depend.
Highlights
In several countries, especially in western and central Europe, local self-government is independent, and direct state interference in its competences is prohibited (Aleksee 2013).Zhang et al (2020) note that when local self-governments have sufficient fiscal autonomy, decentralizing fiscal power to sub-provincial governments is found to have a greater impact on increasing marketization and market efficiency
The company is responsible for its liabilities with all its assets, and the partner is liable for the company’s liabilities up to the amount of its unpaid deposit entered in the Commercial Register
Especially very low values of the coefficient of determination (R2 ), it is not possible to confirm the linear dependence of the profitability of municipal firms on the size of the municipality in which the municipal firm is located, and so partial research hypothesis 2a cannot be confirmed
Summary
Especially in western and central Europe, local self-government is independent, and direct state interference in its competences is prohibited (Aleksee 2013).Zhang et al (2020) note that when local self-governments have sufficient fiscal autonomy, decentralizing fiscal power to sub-provincial governments is found to have a greater impact on increasing marketization and market efficiency. Local self-governments are expected to play a broad and proactive role in supporting local economic development, in addition to performing traditional public service functions. To achieve this, they must constantly innovate to attract talent and investment in the process of meeting the needs of the people in their jurisdictions through the provision of public services (Mei et al 2016). Municipal business is a scientific discipline that seeks to understand the extent to which local self-governments and their representatives shape the discovery, creation, exploration, exploitation, and diffusion of new opportunities and the economic, social, and environmental consequences
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