Abstract
The Relationship between the Risk of a Change of the Interest Rate and the Age of Entrepreneurs among Slovak SMEs
Highlights
Small and medium-sized enterprises (SMEs) are the backbone of each market economy (Sobeková – Majková, 2011; Karpak and Topcu, 2010)
The authors compare the interest rates in the region of East Germany with stress on demographic indicators. They bring results that young entrepreneurs are more likely to pay higher interest rates because their businesses are smaller and their liquidity to pay in time is lower than of the older entrepreneurs
Literature research indicates the risk of a change of an interest rate is a considerable business risk that SMEs and young entrepreneurs face, which is confirmed by the newest study of the OECD (2014)
Summary
Small and medium-sized enterprises (SMEs) are the backbone of each market economy (Sobeková – Majková, 2011; Karpak and Topcu, 2010) Their share on total number of companies in the EU, the US and in Slovakia is almost 99 % (Bhaird, 2010;Belás et al, 2015a, Kozubíková et al, 2015;Sobeková – Majková, 2011). Their small size is according to such authors as Steinerowska-Streb and Steiner (2014), Irwin and Scott (2010), Mercieca et al (2009), Belás (2015b), Dong and Men (2014), Cheng, Tang and Shi (2012) often a reason why they more intensively face the financial risk and the credit risk.
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