Entrepreneurial Risk Management Research Articles

Hierarchical classification of entrepreneurial risks

Aim. Improvement of the hierarchical classification of entrepreneurial risks.Objectives. Justification of the relevance of modernization of the hierarchical classification of entrepreneurial risks, coverage of this problem and the experience of its solution in the scientific community; selection of the most acceptable classification of entrepreneurial risks and search for its weaknesses; introduction of new classes and determination of their place in the hierarchical classification of entrepreneurial risks; addition of existing classes of entrepreneurial risks; visualization of cause-and-effect relations between the elements of the hierarchical classification of entrepreneurial risks; argumentation of the following aspects of the hierarchical classification of entrepreneurial risks.Methods. The author applied the system approach, methods of logical analysis, synthesis, induction and deduction, as well as situational modeling and classification.Results. On the basis of the known researches the hierarchical structure, interconnected system of entrepreneurial risks is selected and supplemented. The class “Economic risks” was supplemented: the place and interrelations of transportation risks in the classification of the upper level were established. The class “Personnel risks” has been expanded: the place and interrelations of risks of reduction of personnel potential of the company have been determined. The scheme of influence of factor risks on decrease of personnel potential of the company is developed, and also causal relations are grounded. The architecture of the “Financial Risks” class is enriched with six risks. They include interest and credit risks, settlement risk, risk of solvency loss, risk of lost profit, risk of non-payment on commercial transactions and risk of loss of competitiveness. A new class in the system classification of top-level entrepreneurial risks “Digital Risks” is supplemented and described. The structural definitions are singled out, the place and interrelations of the proposed class are determined. The author proposed the place of the risk of reduction of innovation potential outside the classes, opening the prospect of considering a new class of the upper level.Conclusions. Risk management should have a regular and systematic character. Classification as an element of entrepreneurial risk management requires updating and modernization in connection with new challenges in the business environment. The article substantiates the scientific and practical significance of the outlined approach.

Analysis of College Students' Entrepreneurship Under E-Commerce Environment

According to the relevant survey, the success rate of college students' entrepreneurship is lower than 5% for a long time, which is mainly due to the low cognitive ability of college students' entrepreneurship risk and the lack of knowledge related to risk management. The research results show that college students are more worried about and attach importance to the direction of the project, the source of funds, the change of the market and the corresponding knowledge and skills, but pay less attention to social resources and social skills. On the whole, college students' risk management ability is medium, so at the end of this article, relevant suggestions are put forward for the improvement of college students' entrepreneurial risk management ability.

Portfolio of business risks in the context of transformational changes in the economy

The article states that the functioning of business in a changing environment associated with transformational changes in the economy requires increased attention to uncertainty, identification and neutralization of possible risks that may adversely affect its functioning and further development. The greater the uncertainty in making a business decision, the greater the degree of risk. It is virtually impossible to eliminate risks in the course of business activities, as they are an element of objective reality. However, it is possible to neutralize or minimize them through timely managerial decision-making. It is substantiated that decision-making on entrepreneurial risk management requires a structured approach, and therefore, the formation of a clear algorithm of actions. It is emphasized that both in the world practice and in Ukraine, corporate risk management standards have been introduced. It is emphasized that with the transformational changes in the economy, accelerated development of digitalization and an active offer of business risk assessment software products, these standards are losing their value every day. It is proved that the current DSTU ISO 31000:2018 "Risk Management. Principles and Guidelines" needs to be modified. Principles and Guidelines" should be modified by supplementing the standard with a clear algorithm for building a risk portfolio and briefly describing each of its stages. It is proved that the introduction of the proposed amendments to DSTU ISO 31000:2018 "Risk Management. Principles and Guidelines" and their implementation in practice will allow not only to clearly observe the trends in changes in the priority of risks and promptly make decisions on their neutralization or minimization of the impact on the activities of an economic entity, but also to model the development of events or changes in the situation in both the short and long term, which will facilitate the early creation of reserves to cover losses due to the occurrence of difficult to manage and/or unmanageable risks.

Entrepreneurial Risk Management of Buddhist Entrepreneurs

This study aims to explore and understand the context of the behavior and perceptions of Buddhist entrepreneurs in the application of risk management in entrepreneurial activities. This study reveals the implementation of Buddhist values ​​in the framework of entrepreneurial risk management. This study is set in the setting of Buddhist entrepreneurs in the city of Bekasi, West Java, through a phenomenological qualitative research approach. This study reveals that risk management is a process of reducing inefficiencies that arise from the causal relationship of the actions of Buddhist entrepreneurs in the perspective of Buddhism, Truth in Dhamma. The values ​​of Buddha's teachings are the background for the risk management process which is characterized by an entrepreneurial spirit and character based on Buddhism. This implementation provides a form of motivation in an effort to eliminate risk in an attempt to create value from entrepreneurial activities for the beatitude of oneself and others by having an awareness that is focused on spiritual beatitude. Buddhist values ​​color the formation of an entrepreneurial culture which is reflected in the practices of Buddhist entrepreneurial risk management. The findings of this study provide developments on stakeholder theory on the fulfillment of financial and social performance to stakeholders and its relevance to the fulfillment of spiritual aspects. This study provides the development of stakeholder theory on the interaction between stakeholder attributes and the essential meaning of entrepreneurship in economic, social and spiritual contexts. This study reveals an integrated theoretical model of Buddhist value-based entrepreneurial risk management practices that not only raises the spectrum of traditional risk management, but reflects the value of Buddhism in entrepreneurial activities in fulfilling the goals of Buddhist entrepreneurs in the form of holistic adherence to Buddhist values ​​in personal and business life.
 Keywords: Entrepreneurial Risk Management, Risk Process, Buddhist Values 

Innovation, effectuation, and uncertainty

ABSTRACT Innovation theory clearly differentiates between innovation processes and entrepreneurial processes through its distinction between uncertainty and risk. The authors’ premise is that innovation and entrepreneurship are interdependent, where the role of the innovator is to reduce uncertainty, while the role of the entrepreneur is to manage uncertainty to a point where risk can be assessed. Taking an effectual innovation approach, innovation is modelled as uncertainty management requiring experimentation and flexibility, while entrepreneurial risk management is modelled as pre-commitments and affordable loss. Using data from the innovation processes of 169 US SMEs, the authors propose and test an exploratory empirical model which distinguishes uncertainty from risk and its impact on innovation and firm performance. The authors contend that once uncertainty and risk management aspects are isolated, their relationship to innovation performance can be investigated. The results indicate that uncertainty management does positively impact innovation performance, while a risk management approach impacts firm performance. Our model suggests that it may be helpful to segregate uncertainty and risk at the entrepreneurship–innovation interface.

Entrepreneurial Risks: Causes, Consequences and Management (Theoretical Aspects)

The article reveals the causes of entrepreneurial risks, identifies the consequences that may arise in the manifestation of entrepreneurial risks and considers the process and system of entrepreneurial risk management. It has been found that entrepreneurial activity is characterized by management decisions that can be risky. It is determined that entrepreneurial risks are an essential component of entrepreneurial activity. It is established that the emergence of business risks is influenced by several factors, including economic climate, features of technological progress, level of competition, specifics and complexity of business activities, parts of geographical location. It is proved that business risks are a vector of the consequences of management decisions the entity makes in the context of its business activities to profit from such activities. Types of entrepreneurial risks are identified, such as economic risk, business development risk, business stability risk, psychological risk, social risk, the risk of losing the proper level of efficiency from the use of fixed capital, the risk of reducing financial stability, the risk of lowering the efficiency of resource potential, the risk of dropping the level of solvency of consumers due to the loss of a significant share of income, the risk of public authorities to make management decisions that are restrictive in the implementation of business entities, etc. It has been proved that the process of business risk management should be continuous and structured, and its main goal should be to identify, analyze, assess and prevent the occurrence of business risks and various threats associated with risks. It is determined from the perspective of further research to find out the peculiarities of improving the business risk management system in the context of the implementation of business activities by the business entity.

Scientific advances in economics and cultural studies as the basis for entrepreneurial risk management

Scientific advances in economics and cultural studies as the basis for entrepreneurial risk management

МЕТОДИ І АЛГОРИТМ ОЦІНЮВАННЯ ПІДПРИЄМНИЦЬКИХ РИЗИКІВ

Based on the study of theory and practice, the article reveals issues related to methods and algorithm for assessing entrepreneurial risks, as well as presents the relevant conclusions and proposals in this direction, in particular: the choice of tools for assessing (methods and algorithm) of entrepreneurial risks with proper normative and legal regulation is an important stage in the process of entrepreneurial risk management, where quantitative assessment of entrepreneurial risk is in addition to qualitative.

Impact of sci-tech finance on the innovation efficiency of China's marine industry

To realize the high-quality development of China's marine economy, it is important to vigorously promote blue finance and increase the support of science and technology finance for the innovation development of the marine industry. Based on the existing literature research, this paper uses two-step empirical evidence to investigate the role of science and technology finance on the innovation efficiency of the marine industry by combining the development status of science and technology innovation, science and technology finance in the marine industry. The results of the study show that government financial investment in science and technology finance has a significant contribution to the innovation efficiency of the marine industry; The innovation efficiency of marine industry is positively but not significantly affected by the investment of enterprises' funds in science and technology, and the innovation efficiency is inhibited by the investment in entrepreneurial risk management. In addition, there are still large differences in the efficiency of innovation in the marine industry among different regions. Moreover, we propose the government support the marine industry science and technology innovation fully, optimize risk investment and improve the investment return guarantee mechanism, and unblocked the indirect financing channels of the financial market for the sea-related science and technology innovation enterprises, and give policy recommendations to develop the marine industry science and technology innovation activities.

АНАЛІЗ ОЦІНКИ РИЗИКІВ ЯК ІНСТРУМЕНТ СТАЛОГО РОЗВИТКУ ПІДПРИЄМНИЦТВА В УМОВАХ ГЛОБАЛЬНИХ ВИКЛИКІВ ТА КОРОНАКРИЗИ

The article highlights the issues related to the problems of identification and timely assessment and analysis of risks to ensure the economic security of entrepreneurship from the standpoint of growth of integration processes in the world economy. It is noted that the formation of modern business is associated with the emergence of new global threats to economic security on the example of the coronavirus pandemic COVID-19. In the conditions of transformation of entrepreneurial risks, when existing methods and mechanisms of their management cease to be fully adequate to new realities and modern challenges, it is necessary to develop a modern concept of risks, improve their classification and improve existing mechanisms for analyzing and assessing business impacts. Thus, the study of these problems is the main purpose and objectives of the scientific article. The study analyzes the causes of major risks and threats under the influence of the pandemic and the consequences for the economic activity of small and medium-sized businesses in the country. The results of the study allow defining the essence of the concept of risk, to describe the improved classification of the most probable risks for small. Medium business in crises caused by the introduction of "lockdowns" and changes in legislation, the most affected by economic and further economic recovery and develop some ways to assess and mitigate risks. It is also proposed to introduce future stress tests for all levels of enterprises and organizations, which will be able to take into account and analyze a wider range of possible scenarios and risks associated with pandemic threats and the impact on business stability and resilience. Entrepreneurial risk management is complicated by the current situation of the Ukrainian economy in the world, as well as changes in the political, financial and global spheres have an increasingly significant impact on economic processes, including at the level of each individual business structure. Prospects for further research on this topic may be the study of the relationship and possible consequences that arise in business under the influence of modern risks and the development of the concept of "stress resistance" of the enterprise.

ОСОБЛИВОСТІ ОБЛІКОВО-АНАЛІТИЧНОГО ЗАБЕЗПЕЧЕННЯ УПРАВЛІННЯ ПІДПРИЄМНИЦЬКИМИ РИЗИКАМИ

The article reveals the features of accounting and analytical support for entrepreneurial risk management. It was found that entrepreneurial risk is a certain act as a result of which the business entity may suffer losses. It is proved that entrepreneurial risks should be classified according to the specifics of origin, the specifics of the legal settlement, the specifics of industry affiliation, the specifics of the consequences, the specifics of the duration of the impact of entrepreneurial risk, the specifics of the expression of will, the specifics of the form, the specifics of the level of typicality, the specifics of the level of validity, the specifics of the possibility of assessing and resolving the impact, the specifics of the possibility of insuring entrepreneurial risks, the specifics of the occurrence of entrepreneurial risks by sources of origin, the specifics of the scale of the impact, the specifics of the level of losses and the specifics of character. It is established that the process of entrepreneurial risk management is the process of managing the activities of the business entity as a whole and its individual parts, and takes into account the management of not only existing risks but also potential entrepreneurial risks in space and time, that may occur in the future during entrepreneurial activities. It is determined that the process of entrepreneurial risk management should take into account the stage of preparation and implementation of appropriate measures to reduce the risk as a result of making erroneous decisions by business entities, the stage of reducing the impact of possible negative consequences that may occur, especially, if the entity operates in unexpected changes and alarming development trends, as well the stage of development and implementation of the Declaration on Risk Management and the Risk Management Program. It is established that the important information on which it is possible to estimate possibility of occurrence of entrepreneurial risks, is the accounting reporting. In the perspective of further research, it is recommended to study entrepreneurial risks in Ukraine in the context of such aspects as causes, consequences and management.

Moral panic and the new neoliberal compromise

Moral panics are conventionally explained as socially regressive overreactions to objectively minor problems. In the early 2000s, moral panics were recast as collective grievances that arise from perceived crises in the moral regulation of everyday life. Emphasizing neoliberal forms of entrepreneurial risk management, the panic-as-regulation perspective provides ways of thinking beyond some of the limitations associated with conventional perspectives. This article shows how the new neoliberal compromise, characterized by ongoing submission to the rule of capital in the absence of familiar ways of securing hegemonic consensus, is calling attention to the importance of theorizing the conjunctural norms of personal responsibility that underscore the panic-as-regulation perspective. By locating market-oriented subjectivities in the wider trajectory of neoliberalism, we achieve two things: first, a clearer understanding of the normative phase of neoliberal rule in whose image the panic-as-regulation perspective is crafted; second, a stronger position to develop insights into post-hegemonic claims-making activities that are appearing across the political and cultural spectrums.

Do entrepreneurial knowledge and innovative attitude overcome “imperfections” in the innovation process? Insights from SMEs in the UK and Italy

Purpose Entrepreneurial knowledge spurs innovation and, in turn, generates a competitive advantage. This paper aims to explore if entrepreneurial knowledge combined with the attitude to innovate can overcome the key “imperfections” of the innovation process generated by dynamic, current technological progress in the knowledge-intensive sector. The “imperfections” identified in risk management, asymmetric information in the knowledge management process and hold-up problems can all disrupt collaborative partnerships and limit opportunities for innovation. Design/methodology/approach A theory-building approach is applied which offers a case study analysis of two small- to medium-sized enterprises (SMEs). These two SMEs operate in Europe but in two different territories: the UK and Italy. The study explores three key imperfections, risk management, asymmetric information in the knowledge management process and hold-up problems, which occur in the innovation process. Findings The entrepreneurs face these imperfections by adopting an open innovation model. Notwithstanding, both entrepreneurs had to deal with all “imperfections”, and their skills, attributes, attitude and aptitude allowed them to grow their business and continually develop new products. Therefore, the imperfections do not limit the innovative capacity of an entrepreneur but rather enhance their challengeable attitude. In this regard, the case studies induce a further analysis on entrepreneurial knowledge intertwined with entrepreneurial risk management and networking skills. Research limitations/implications The empirical significance of the two cases does not allow theorisation. However, this research offers interesting results which can be strengthened by a comparative case study with other countries or deeper investigation by applying a quantitative approach. Originality/value By leveraging entrepreneurial knowledge, the imperfections noted in the innovation process can be overcome. Entrepreneurial knowledge is recognised as the main asset of an enterprise if it is combined with external talent or human resources. Entrepreneurs aim to develop innovative approaches and ideas through establishing both formal and informal collaborative partnership relationships which are used thanks to the entrepreneurs’ networking skills, knowledge and abilities.

Safety and health in forest harvesting operations. Diagnosis and preventive actions. A review.

Aim of study: to review the present state of the art in relation to the main labour risks and the most relevant results of recent studies evaluating the safety and health conditions of the forest harvesting work and better ways to reduce accidents.Area of study: It focuses mainly on developed Countries, where the general concern about work risks prevention, together with the complex idiosyncrasy of forest work in forest harvesting operations, has led to a growing interest from the forest scientific and technical community.Material and Methods: The main bibliographic and Internet references have been identified using common reference analysis tools. Their conclusions and recommendations have been comprehensively summarized.Main results: Collection of the principal references and their most important conclusions relating to the main accident risk factors, their causes and consequences, the means used towards their prevention, both instrumental as well as in the aspects of training and business management, besides the influence of the growing mechanization of logging operations on those risks.Research highlights: Accident risk is higher in forest harvesting than in most other work sectors, and the main risk factors such as experience, age, seasonality, training, protective equipment, mechanization degree, etc. have been identified and studied. The paper summarizes some relevant results, one of the principal being that the proper entrepreneurial risk management is a key factor leading to the success in minimizing labour risks.Key words: labour risk; forestry; accident rates; preventive measures; entrepreneurial risk management.

ENFORCING SUSTAINABLE DEVELOPMENT BY LEGISLATION: ENTREPRENEURIAL CONSEQUENCES OF THE NEW GERMAN WASTE MANAGEMENT ACT

The new German Closed Substance Cycle and Waste Management Act can be regarded as an effort on the part of the Federal Government to implement the concept of sustainable development in the business sphere. The Act introduces new regulations to substantial areas of entrepreneurial waste management activities by broadening the entire national waste concept, setting new priorities with regard to the avoidance of and the duty to utilize waste, extending specific duties for companies to provide information and, above all, by legally codifying manufacturers' product responsibility (product stewardship). This last point gives rise to serious consequences for entrepreneurial management. Generally speaking, the numerous forthcoming governmental ordinances based on this Act may be expected to cause a shift in companies' perspectives from environmental management towards entrepreneurial risk management. Serious consequences for product planning and management can also be expected.

ENFORCING SUSTAINABLE DEVELOPMENT BY LEGISLATION: ENTREPRENEURIAL CONSEQUENCES OF THE NEW GERMAN WASTE MANAGEMENT ACT

The new German Closed Substance Cycle and Waste Management Act can be regarded as an effort on the part of the Federal Government to implement the concept of sustainable development in the business sphere. The Act introduces new regulations to substantial areas of entrepreneurial waste management activities by broadening the entire national waste concept, setting new priorities with regard to the avoidance of and the duty to utilize waste, extending specific duties for companies to provide information and, above all, by legally codifying manufacturers' product responsibility (product stewardship). This last point gives rise to serious consequences for entrepreneurial management. Generally speaking, the numerous forthcoming governmental ordinances based on this Act may be expected to cause a shift in companies' perspectives from environmental management towards entrepreneurial risk management. Serious consequences for product planning and management can also be expected.