THE PERCEPTION OF LEGAL RISK AND ITS IMPACT ON THE BUSINESS OF SMES

Virglerova, Z., Conte, F., Amoah, J., & Massaro, M. R. (2020). The Perception of Legal Risk and Its Impact on the Business of SMEs. International Journal of Entrepreneurial Knowledge, 8(2), 1-13. doi: 10.37335/ijek.v8i2.115

Authors

DOI:

https://doi.org/10.37335/ijek.v8i2.115

Keywords:

Entrepreneurship, small and medium enterprises, business risk, legal risk

Abstract

One of the prerequisites for a favourable business environment is a stable legislative context and law enforcement. In particular, for SMEs, that do not have the financial resources for stable legal assistance, legal risk is becoming one of the most important business risks. The aim of this paper is to enrich the current scientific knowledge with a comparison of the impact of legal risk on SMEs in selected countries. The empirical research was conducted by Tomas Bata University in Zlín during 2019-2020. In total, 1935 SMEs completed the questionnaire and their responses were examined to fulfil the purpose of the paper. The four statistical hypotheses were analysed through statistical methods such as Z-score and Chi-square tests, with IBM SPSS Statistics 23.0 used for data evaluation. Findings highlight that more than 50% of SMEs consider the management of legal risk as appropriate. Only 39% of SMEs consider the business environment as over-regulated. Almost 50% of entrepreneurs agree that their business is affected by frequent legislative changes but with no negative impact. There are statistically significant differences in consideration of legal risk between SMEs from the Czech Republic and the rest of the selected countries (Slovakia, Poland, Hungary and Ukraine).

Author Biographies

Zuzana Virglerova, Tomas Bata University in Zlín

Zuzana Virglerová, Ph.D.

Researcher, Center for Applied Economic Research, Faculty of Management and Economics, Tomas Bata University in Zlín, Mostní 5139, Zlin 760 01, Czech Republic,

E-mail: virglerova@utb.cz

Webpage: https://fame.utb.cz/en/contacts/ing-zuzana-virglerova-ph-d-2/

ORCID: 0000-0002-7957-9216

Area of interest: business risks, SMEs, business environment.

Francesca Conte, University of Salerno, Department of Political and Communication Sciences, Italy

Francesca Conte, Ph.D.

Lecturer in e-commerce and cultural marketing, University of Salerno, Department of Political and Communication Sciences, Via Giovanni Paolo II, 132 - 84084 Fisciano (SA), Italy

Email: fconte@unisa.it

Webpage: https://docenti.unisa.it/024895/home

Area of interest: sustainability, corporate communication, corporate reputation.

John Amoah, Faculty of Management and Economics, Tomas Bata University in Zlín, Czech Republic

John Amoah

PhD Student, Faculty of Management and Economics, Tomas Bata University in Zlín, Mostní 5139, Zlin 760 01, Czech Republic

Email: jamoah@utb.cz

ORCID: 0000-0002-3558-2077

Area of interest: financial performance of SMEs, banking industry, entrepreneurship

Maria Rita Massaro, University of Westminster, School of Management and Marketing, London, UK

Maria Rita Massaro PhD

Lecturer in Marketing, University of Westminster, School of Management and Marketing, 35, Marylebone Road, NW1 5LS, London

Email: r.massaro@westminster.ac.uk

Webpage: https://www.westminster.ac.uk/about-us/our-people/directory/massaro-rita

Area of interest: entrepreneurship, innovation, brand management, destination branding.

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Published

2020-12-31