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

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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.

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    • Figure 1. The most significant business risks according to the attitudes of the respondents
    • Table 1. Selected descriptive characteristics of the assessment of business risk claims according to the criterion
    • Table 2. Dependences of indicators of the most significant business risks on the perceived future of business according to the criterion
    • Table 3. The influence of market risk indicators on the perception of the future of business according to the criterion
    • Table 4. The impact of financial risk indicators on the perception of the future of business according to the criterion
    • Table 5. The influence of personnel risk indicators on the perception of the future of business according to the criterion
    • Data curation
      Ján Dvorský
    • Formal Analysis
      Ján Dvorský
    • Methodology
      Ján Dvorský, Jiří Polách
    • Project administration
      Ján Dvorský
    • Validation
      Ján Dvorský
    • Writing – original draft
      Ján Dvorský
    • Conceptualization
      Aleksandr Ključnikov, Jiří Polách
    • Investigation
      Aleksandr Ključnikov
    • Supervision
      Aleksandr Ključnikov
    • Visualization
      Aleksandr Ključnikov, Jiří Polách
    • Writing – review & editing
      Aleksandr Ključnikov