Leaders and financial risks in small and medium enterprises

DOI

10.2991/icsbal-19.2019.18How to use a DOI?

Keywords

Leadership, financial risk, perception of risk, econometrics, leaders

Abstract

This paper focuses on the issue of leaders and financial risks in small and medium enterprises (SMEs). Business leaders who are often the managers or owners of small enterprises are the first to face the risk and to suffer most severely from their outcomes. Thence, they need to be aware of all possible risks coming their way and to indicate them properly and in time. Nowadays, small companies mostly appear to suffer from operational risks and financial situation. We demonstrate that there is a need for instruments to promote and support the economic recovery of the SMEs in the European Union (EU) and several countries outside the EU. The central question at this point is whether they should be maintained once the recovery has fully stabilized. In terms of guarantees, we need convincing arguments as to why extending credit risk to taxpayers can lead to a solution to structural market failures. We employ the empirical model that reports the results of the econometric analysis of opinions of Slovak leaders regarding the highest financial risk in small and medium enterprises from Slovak Republic. Our results show that poor payment discipline of business partners and the dysfunctional capital market both constitute the highest financial risk for small business companies.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Mihaela Simionescu
AU  - Aleksander Kozharinov
PY  - 2019/10
DA  - 2019/10
TI  - Leaders and financial risks in small and medium enterprises
BT  - Proceedings of the 4th International Conference on Social, Business, and Academic Leadership (ICSBAL 2019)
PB  - Atlantis Press
SP  - 95
EP  - 100
SN  - 2352-5398
UR  - https://doi.org/10.2991/icsbal-19.2019.18
DO  - 10.2991/icsbal-19.2019.18
ID  - Simionescu2019/10
ER  -