ISSN: 1648 - 4460

International Journal of Scholarly Papers

VU KHF

Transformations  in
Business & Economics

Transformations in
Business & Economics

  • © Vilnius University, 2002-2020
  • © Brno University of Technology, 2002-2020
  • © University of Latvia, 2002-2020
Article
MARKET RISK IN THE SMEs SEGMENT IN THE VISEGRAD GROUP COUNTRIES
Jaroslav Belas, Martin Cepel, Yana Kliuchnikava, Jaromir Vrbka

ABSTRACT. Market risk significantly affects the activities of small and medium-sized enterprises (SMEs). Its management determines the financial performance of the company and whether it will remain on the market. This article aims to examine significant factors that determine the intensity of market risk. The authors present their empirical model of the dependence of the company's perceived future on the intensity of market risk factors. Empirical research was carried out in the Visegrad4 countries. As part of this research, information from 1,585 small and medium-sized companies was obtained. The results of the study confirmed the existence of a primary relationship between the assessment of business risks of SMEs depending on macroeconomic development. Market risk is consistently significant for the development of SMEs in every stage of the economic cycle because its management means the constant financial performance of SMEs and their sustainability in the market. The situation in the SME segment is not dramatic, as about half of the entrepreneurs interviewed considered market risk as reasonable, and 2/3 of the entrepreneurs stated that they had a reasonable amount of sales. Competition in the business sector significantly motivates SMEs to improve their performance. An interesting and important finding is the fact that SMEs pay little attention to innovative ways to gain new markets and retain existing customers. The research confirmed that larger and older companies within the SME segment tend to be more able to manage the factors determining the intensity of market risk.

KEYWORDS:  small and medium-sized enterprises, market risk, market risk factors, competitiveness, V4 countries.

JEL classification:  L26, F14, F23.

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Scholarly papers Transformations in Business & Economics
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