PERCEPTION OF BUSINESS RISK BY ENTREPRENEURS ACCORDING TO EXPERIENCE WITH THE BUSINESS FAILURE

Dvorský, J., Petráková, Z., Fialová, V. (2020). Perception of Business Risks by Entrepreneurs According to Experience with the Business Failure. International Journal of Entrepreneurial Knowledge, 8(1), 76-88. doi: 10.37335/ijek.v8i1.104

  • Ján Dvorský Department of Business Administration, Faculty of Management and Economics, Tomas Bata University in Zlín, Czech Republic
  • Zora Petrakova Faculty of Civil Engineering, Slovak University of Technology, Institute for Forensic Engineering, Bratislava, Slovak Republic
  • Vendula Fialová Institute of Entrepreneurship and Marketing, University of Entrepreneurship and Law, Prague, Czech Republic
Keywords: business risks, experience with the business failure, business environment, small and medium-sized enterprise, entrepreneurship.

Abstract

The aim of the article is to compare the attitudes to business risks and business failure among entrepreneurs that have experience with bankruptcy and entrepreneurs that do not have experience with bankruptcy in the business environment of small and medium-sized enterprises. The main objective of the article is to evaluate business risks: market, economic, financial, strategic, personnel, legal, and operational risk; and statements about the experience with business failure. Questionnaires of 454 small and medium-sized enterprises were collected and prepared for evaluation in 2020. Statistical hypotheses were rejected through the statistical method Z- test. The results showed interesting findings. The most important business risks are the market, financial, and personnel risk according to entrepreneurs. Entrepreneurs without the experience of business failure have more positive attitudes (66.7%), and there is no risk of bankruptcy to their company for 5 years than entrepreneurs with experience of business failure (45.2%). The next finding is that entrepreneurs without the experience of business failure have more positive attitudes (60.6%) to the rate of the market risk (lack of sales for my company) as adequate than entrepreneurs with experience with business failure (38.4%). Also, it was shown that entrepreneurs without experience with business failure have more positive attitudes (59.8%) to the error rate of employees, which is low and has no negative impact on my (our) business than entrepreneurs with experience of business failure (53.4%).

Author Biographies

Ján Dvorský, Department of Business Administration, Faculty of Management and Economics, Tomas Bata University in Zlín, Czech Republic

Ing. Ján Dvorský, PhD.

Department of Business Administration, Faculty of Management and Economics, Tomas Bata University in Zlín, Mostní 5139, 760 01 Zlín, Czech Republic, Affiliation web page: www.fame.utb.cz, e-mail: j1dvorsky@utb.cz. His research is focused on Enterprise Economics, Quality of Business Environment, Risk Management, Small and Medium-sized Enterprises, and Education of students in the economic field. He published 31 scientific articles on database Scopus (h-index = 7) and 22 scientific articles on database Web of Science (h-index = 5).

Zora Petrakova, Faculty of Civil Engineering, Slovak University of Technology, Institute for Forensic Engineering, Bratislava, Slovak Republic

Assoc. Prof. Ing. Zora Petráková, PhD.

Institute for Forensic Engineering, Faculty of Civil Engineering, Slovak University of Technology, Radlinského 11, 810 05 Bratislava, Slovak Republic, Affiliation web page: www.svf.stuba.sk, e-mail: zora.petrakova@stuba.sk. She is head of Institute for Forensic Engineering. She provides lectures in Forensic and economic engineering for full-time students. He published 4 scientific articles on database Scopus (h-index = 2) and 3 scientific articles on database Web od Science (h-index = 2).

Vendula Fialová, Institute of Entrepreneurship and Marketing, University of Entrepreneurship and Law, Prague, Czech Republic

Ing. Vendula Fialová, Ph.D.

Department of Entrepreneurship and Management, The College of Entrepreneurship and Law, Vltavská 585/14, 150 00 Praha 5, Czech Republic, www.vspp.cz, email: vendula.fialova@vspp.cz. Her research is focused on Small and Medium-sized Enterprises, on Entrepreneurship and the Business Environment and Family Business. She published 1 scientific article on database Scopus and 4 scientific articles on database Web of Science.    

Published
2020-06-30