The purpose of firms and its influence on formulating their missions and visions

The aim of this article is to investigate the relationship between firm's purpose (i.e., profit, shareholder value or service to society) and the formulation of its mission and vision. The article is based on quantitative research in the form of questionnaires distributed among 200 companies. To verify the above relationship, six hypotheses were put forward. They were verified with the test of good fit and the T-test. We found statistically significant differences between the perception of firm's purpose and revenues of firms, and formulation of their mission and vision. On the other hand, no statistically significant differences were noticed between concrete mission interpretation and firm's purpose. It was revealed that most of enterprises perceive their purpose as profit (61%). The purpose of enterprise in the form of profit-making negatively influences firm’s formulation of mission. Out of the total number of enterprises without mission (in written form), 74% of them are oriented toward profit-making. Mission is formulated by 67% of enterprises. Of these, the most frequent formulation of mission is similar to goals and strategy (36%) and what firms do (34%). Of the total number of companies (200) only 13.5% of them have the mission that reflects the company's reason being. More than half of enterprises (54%) formulated their mission and vision, but 27% of them exist without it. The absence of vision very often leads to reluctance to formulate firm's mission. Out of the total number of enterprises without formulated mission 82% of them are without written formulation of vision. Based on our research it can be stated that third of the surveyed enterprises did not formulate their mission and 40% of companies did not formulate their vision. © 2019, Economic Laboratory for Transition Research. All rights reserved

Assessing the risks and their sources in dependence on the rate of implementing the risk management process in the SMEs

Research background: The managers have a key position in process of management risk. The managers are able to implement the risk management process in the companies with an emphasis on preventing the company crises using the appropriate methods and tools for the early identification of the changes if the entrepreneurial environment develops negatively. Does a manager have enough knowledge and awareness about the potential risk sources in company? Purpose of the article: The essence of this article is to assess the sources of the market, economic, financial, operational, HR, security and legal risk depending on the rate of implementing the risk management process in the small and medium-sized enterprises (SMEs). Methods: We realized the risk assessment process on the basis of evaluations by 487 managers who gave their opinions to selected risks and their sources in the SMEs in Slovakia. Subsequently, we utilized the methods and tools of the mathematical statistics (descriptive statistics, comparison, Z-score for 2 population proportions, Chi-squared test for 5 x 2 contingency table). Findings & Value added: The strongest dependence perceived by the SME-entrepreneurs lies between the development of the tax and insurance burdens as the source of the economic risk and the criterion of the "level of the risk management in the company". The overall results of the empirical research underline the significance and importance of dealing with the assessment of the key risks and their sources in the Slovak SMEs. The results having been processed are the basic material for the professional public and other organizations whose effort is to help the companies in an effective implementation of the risk management process in the Slovak enterprises.Scientific Grant Agency of the Ministry of Education, Science, Research, and Sport of the Slovak Republic - VEGA [1/0560/16]; KEGA [030ZU-4/2018, 1/2018]Vedecká Grantová Agentúra MŠVVaŠ SR a SAV, VEGA: 1/0560/1

Analysis of the market risk sources in the small and medium-sized enterprises of transport

The aim of this paper was to define the important market risk sources in the transport small and medium-sized enterprises segment. A part of this aim is to find out how entrepreneurs evaluate these sources, and quantify the differences in their evaluation based on the entrepreneur's characteristics, such as nationality, age, gender and others. The questionnaire was completed by 122 enterprises from Slovakia, Poland, the Czech Republic and Serbia. Statistical tools such as pivot tables, percentages and goodness-of-fit tests were applied to verify the formulated hypotheses. The most important source of market risk is a strong competition in the line of business. The obtained education of entrepreneurs is statistically significant characteristics for the evaluation of the market risk sources in selected transport enterprises. The findings are important for state institutions and their support systems in the transport SMEs segment. © 2019 University of Zilina. All rights reserved

Important factors of financial risk in the SME segment

The aim of the article is to define and quantify the significant factors which influence the intensity of financial risk, and to compare the perception of financial risk among groups of entrepreneurs in the SME segment according to their motivations for starting a business. In relation with the aims defined under this research, we carried out a survey of the entrepreneurial environment of SMEs in 2015, using a sample of 1,141 respondents (the owners of the enterprises). We used Z-score and regression analysis to assess our hypotheses. The results of our research confirmed that the attitude towards financial risk is determined by the following factors: CRM (Correct risk management by entrepreneurs), CFR (The influence of credit risk during a crisis), and SFS (Sufficient funds for SMEs). The entrepreneurs who started their business because they considered it to be their mission answered more frequently that they can correctly manage financial risk in their companies in comparison with the entrepreneurs who started their business for money. The difference was statistically significant. Our research also confirmed that entrepreneurs who started their business because of money perceived the effects of crisis on their company’s financial risk more intensely. © Foundation of International Studies, 2018 and CSR, 2018

Business risks and their impact on business future concerning the entrepreneur's experience with business bankruptcy: Case of Czech Republic

The article aims to determine the difference in the perception of selected business risks and their impact on the future of business concerning the entrepreneur's experience with business bankruptcy. The case study involved 73 small and medium-sized enterprises (SMEs) with experience of business bankruptcy and 381 SMEs without the experience of business bankruptcy from the Czech Republic (CR). Linear regression models were used to verify statistically significant causal relationships between selected indicators of the most significant business risks and respondents' perceptions of the future of business. The results brought interesting findings. The attitudes of entrepreneurs show that personnel, market, and financial risk are among the three most significant business risks. Experience with business failure is not a significant factor in determining the impact of market indicators on the business's perceived future. The adequacy of sales of services and products has the greatest impact. The experience of the bankruptcy of SMEs is important in financial risk attitudes. According to entrepreneurs who have no experience with bankruptcy, the perception of financial performance has the greatest direct impact on the future of business. Conversely, for entrepreneurs who have experienced bankruptcy, the ability to properly manage financial risk on the company's future has the greatest direct impact. © 2020 LLC CPC Business Perspectives. All rights reserved

The reducing hospital costs through horizontal integration

Background: This paper investigated the impact of hospitals' horizontal integration in the Czech Republic on the cost behavior. The aim of the research was to examined the hospitals costs in specific environment of region hospitals at NUTS 3 level (Nomenclature of Units for Territorial Statistics) – Administrative Regions. Methods: The survey was conducted in the period from April to August 2016 in the Czech Republic. The research was divided into two parts. The first part was based on data obtained from the Institute of Health Information and Statistics of the Czech Republic. We used Statgraphics Centurion XVII for the descriptive statistics and data visualization. Second part of the results was obtained through a survey research focused on managers of the horizontal integrated hospitals and their experiences with the cost behavior. Results: The results from statistical survey showed that up to 80 percent of the observed region hospitals at NUTS 3 level, the cost of treatment for a patient per day has decreased after integration into an association. Based on primary survey, 73% hospital managers confirm these results and see one of the advantages that it is possible to reduce costs through integration of hospitals. The largest savings, according to hospital managers, are due to central purchasing and investments, together and they have a better negotiation position with suppliers. Conclusion: We can confirm that horizontal integration of hospitals can lead to reduction of costs and higher efficiency, in the specific environment of region hospitals at NUTS 3 level. © 2019, Iranian Journal of Public Health. All rights reserved

Evaluation of important credit risk factors in the SME segment

The aim of the paper is to define important credit risk factors in the SME segment, find out how entrepreneurs evaluate these factors, and quantify the differences in their evaluation based on the enterprise’s age, gender and attained education level. An empirical research was conducted in relation to the defined aim. 1,141 responses were received by means of the online questionnaire. To process the results, the two-sample t-test was used. Statistical tools such as histogram, Q-Q graph, z-test, and goodness-of-fit tests were applied to verify the assumptions. The results indicate that small and medium-sized enterprises perceive credit risk more intensively in comparison with the pre-crisis era. It was also discovered that the SMEs’ knowledge of credit criteria is somewhat low. Entrepreneurs also state that banks’ credit criteria are not very transparent. Based on the findings, the length of operating a business has a significant influence on the evaluation of credit risk factors. Experienced entrepreneurs, meaning those operating a business for over 10 years, have a more intense perception of the significance of credit risk, they also have better knowledge of banks’ credit criteria, and view credit criteria as more transparent than beginner entrepreneurs. An interesting finding is that the length of operating a business reduces the differences in the evaluation of important credit risk factors in regard to entrepreneurs’ gender and age. © Foundation of International Studies, 2018 and CSR

The influence of some factors of competitiveness on business risks

The impact of significant competition factors on the riskiness of business risk in the SMEs sector in the Czech Republic and Slovak Republic. The empirical research was constructed on the basis a questionnaire. The attitudes from 641 entrepreneurs from two countries were collected during the year 2018. The statistical hypotheses were evaluated using quantitative methods. The multiple linear regression models were used to evaluate the impact of the competitive environment and of the narrow business environment on the perception of the riskiness of business risk according to entrepreneurs. The conclusions ofthe research showed an interesting finding. The authors found that the competitive environment, as well as the narrower business environment, affects the perception of the riskiness of business risk. It has also been shown that my customers accept the prices of my products and services. This is the most important indicator of a competitive environment. The most important indicator of a narrower business environment is that my customers support me in doing business. The authors believe that the article has brought several interesting findings and new incentives for the further research and discussion regarding to the perception of enterprise risk not only in the selected countries this research. © 2020 The Author(s)

Effect of business risks on the business future by Czech and Slovak SMEs in the segment transport and services

The aim of the article was to identify important sources of business risks on the business future in the service and transport sector separately in Czech and Slovak entrepreneurs. The case study was carried out on a sample of 240 small and medium-sized enterprises (SMEs). Linear regression models was applied to verify causal relationships. The business risk are define as market, financial, personal, legal and operational risk. The business future is define as a risk of bankruptcy for company within 5 years. The results show disparities according to the nationality of the respondent. The nationality of the entrepreneur is a significant factor in the perception of the impact of business risk on the future of business. Management of both business risks have a positive impact on the business future of the company according to the Slovak entrepreneurs in the service and transport sector. Management of the operational risk are the most important indicator with a positive impact on the business future of the company according to the Czech entrepreneurs in the service and transport sector. © 2021 Elsevier B.V.. All rights reserved

Entrepreneurial propensity index of university students. The case study from the Czech Republic, Slovakia and Poland

Research background: Promotion of the entrepreneurship has an important role in the society, and the direct relationship between entrepreneurship and economic growth of the country is proven. Universities education should be one of the pillars to build the business environment and the entrepreneurial propensity of the students in the entrepreneurship. Purpose of the article: The paper aimed to define and quantify significant factors that shape the entrepreneurial propensity of university students and create the entrepreneurial propensity index. A part of this aim was a comparison of defined factors in the Czech Republic (CR), Slovakia (SR) and Poland (PL). Methods: The survey-based research was conducted with students in the last year of their economic studies on the universities. 1,352 students from 25 universities in selected countries were approached during research. A custom Entrepreneurial Propensity Index was created that was implemented separately for CR, SR and PL. Findings & Value added: The research brought interesting findings. The aggregated Entrepreneurial Propensity Index in the Czech Republic reached the value of 0.470, which was higher than that of Slovakia (0.424) and Poland (0.412). The evaluation of the quality of university education is similarly positive in all countries (CR: 0.659, PL: 0.589, SR: 0.592). Czech students gave access to the financial resources and the role of macroeconomic environment got a higher rating than Slovak and Polish students. On the contrary, Poland students gave the social environment and business advantages a higher rating than Czech and Slovak students. The evaluation of the personality traits is more positive in Slovakia. The most positive indicator for all students is that doing business enables to make use of own abilities and own solutions