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The differences in the impact of entrepreneurial abilities of various European SMEs on their financial risk perceptions



Objective: The objective of the article is to investigate whether the impact of innovativeness and competitiveness of small and medium-sized enterprises (SMEs) on their financial risks differ depending on the countries where SMEs are located.

Research Design & Methods: The researchers created an online questionnaire and gained data from 1221 Czech, Slovak, and Hungarian SMEs. Moreover, the researchers applied ordinal logistic regression analyses to achieve the goal of this study.

Findings: According to the results, the impact of competitiveness on the bankruptcy risk perception of SMEs differ depending on the countries where they operate. Concerning the impact of innovativeness on financial performance and financial risk management, this article also proves that international differences between SMEs exist.

Implications & Recommendations: The developments in the financial literacy of company executives and their managerial experiences and the improvements in credit access conditions, intellectual property rights, and tax legislation can make SMEs reduce their concerns about their financial risks. Thus, policymakers’ implementations are crucial to providing equal opportunities for SMEs even if they operate in various markets.

Contribution & Value Added: This current research does not only make international comparisons among the investigated variables but also analyses the impacts of entrepreneurial competencies on various indicators of financial risk. These facts not only make this research become a unique study in the literature but also the reason why it should garner the interest of prospective readers such as policymakers, academicians, and SME owners.



innovativeness, competitiveness, SMEs, financial risk, financial performance

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Author Biography

Mehmet Civelek

Senior Researcher at European Centre for Business Research, Pan-European University (Czech Republic). PhD in Finance (2019, Tomas Bata University in Zlin, Czech Republic). His research interests include Credit Risk Management in SMEs, entrepreneurship, and marketing.

Lukáš Durda

Assistant professor at Pan-European University (Czech Republic). PhD in International Entrepreneurship (2019, Pan-European University, Slovakia). His research interests include tourism, business, and management.

Zuzana Vincúrová

Associate Professor at Pan-European University (Slovakia). Her research interests include Economics, Financial analysis, and Corporate finance.

Tomáš Dudáš

Associate Professor at Pan-European University (Slovakia). His research interests include Foreign Direct Investments, International economics and finance.

Ivan Brezina

Assistant professor at Pan-European University (Slovakia). His research interests include Economic theory, Macroeconomics and Microeconomics.


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