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

Abstract

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.