Abstract
The need to pay some attention to the issues of investment processes undertaken in enterprises and explore this topic is a direct result of the important role that enterprises play in the economy—with particular emphasis on the SMEs. From the company’s point of view, it is crucial to obtain economic effects as a result of the implemented investment. The aim of the study was to analyze the results of tangible investments in enterprises in Małopolska province in Poland, in two groups of entities—those that implemented investments using EU subsidies and those that financed investments from other sources without using EU aid. This is a unique research in the field of analysis and presentation of investment data in enterprises, especially in relation to companies using EU funds. There is no comparative assessment of investments in enterprises on this topic in the scientific literature (concerning EU subsidies). For this reason, comparing the effects of investment activities between the two groups of enterprises studied—using and not using EU subsidies—fills the research gap in this regard. The study was based on the critical analysis of domestic and foreign literature, and quantitative and qualitative analyses of the results of a survey among 160 enterprises using the CSAQ method, additionally extended by interviews with selected respondents. Data presentation uses a descriptive approach in combination with statistical analysis. A multiple linear regression model (MLR) was also used to verify hypotheses. Research results show that undertaking investment activities contributes to obtaining favorable results in enterprises, regardless of the source of investment financing. The source of financing the investment is not important for the results achieved in the enterprise. However, representatives of companies who received EU subsidies assess their market position higher after investment relative to companies that used other sources of financing for this purpose. Entities that have received EU subsidies have a stronger perception of investment as an important factor determining the company’s development. In addition, variables were identified using the MLR model that affect the assessment of the financial position of enterprises in both groups of entities. This article supplements the knowledge on the economic effects of investments implemented by enterprises in the SME sector in Poland in a situation where these entities used and did not benefit from EU subsidies during 2007–2015.
Highlights
The purpose of activities undertaken in the process of management of an economic entity should be to strive to maximize the income of its owners, resulting in an increase of the market value of an enterprise (Żurek 2003; Obłój 2007; Suszyński 2007; Borowiecki 2009)
In connection with the intensive activities undertaken by the EU in the context of supporting small- and medium-sized enterprises, the author asked the following research questions: Do the economic effects of investments made by small- and medium-sized enterprises differ in the assessment of their owners depending on whether the companies used EU
The findings presented in the article have a significant impact on the perception of investments from the point of view of effects and variables explaining the economic effects of implemented investments in enterprises
Summary
The purpose of activities undertaken in the process of management of an economic entity should be to strive to maximize the income of its owners, resulting in an increase of the market value of an enterprise (Żurek 2003; Obłój 2007; Suszyński 2007; Borowiecki 2009). Sci. 2020, 10, 4 is only possible by taking development decisions that include investments, treating them as one of the more important ways to grow the capital of an enterprise For this reason, a special role in the development of an enterprise is attributed to investment processes having their effect in the future economic situation of this economic entity (Żurek 2003). In the present-day free market economy, in a situation of intensified competitive activity of both domestic and international enterprises, the vast majority of economic entities put emphasis on tangible investments, which are intended to contribute to the development of the enterprise as well as to the increase in its efficiency For this reason, the role of small- and medium-sized enterprises is to thoroughly understand their current market situation and, on this basis, choose the right directions and size of investments to achieve the desired effect of stable and long-term growth and development
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