scholarly journals European SMEs’ value management based on controlling, financial analysis and ratios – empirical study

2019 ◽  
Vol 16 (4) ◽  
pp. 277-289 ◽  
Author(s):  
Přemysl Písař
Keyword(s):  
European Union ◽  
Statistical Analysis ◽  
Financial Analysis ◽  
Small And Medium Enterprises ◽  
Experimental Testing ◽  
Added Value ◽  
The European Union ◽  
Innovative Potential ◽  
Medium Enterprises ◽  
Value Growth

Small and medium enterprises (SMEs) are a powerful economic force, significant employers, and creators of added value. In the European Union SMEs are the backbone of its economic and innovative potential, and for this reason, economic development and stability of SMEs are critical. The goal of this study is to apply modern controlling to the management of SME value growth using the tools and indicators of financial analysis. This study is based on a detailed analysis of 359 companies from the European Union in order to test 4 hypotheses. The data obtained were subjected to statistical analysis to identify the dependence between the controlling management of a company, tools of financial analysis, innovative potential, level of digitization, internal auditing, and HR communication tools used in the SME. The statistical analysis confirmed a close relationship between the studied variables and created a model for managing the company’s value growth for the study sample of SMEs. Subsequent experimental testing was used to confirm these conclusions, and other important associations were found that are important for successful management of SMEs value growth. The findings obtained are applicable in practice and can be used for a deeper analysis of the issues in question.

scholarly journals New tools and opportunities in growth and climate friendly greening for small and medium enterprises in the European Union

2015 ◽  
Vol 9 (4) ◽  
pp. 25-31
Author(s):  
Xénia Szanyi-Gyenes ◽  
György Mudri ◽  
Mária Bakosné Böröcz
Keyword(s):  
Economic Growth ◽  
Environmental Sustainability ◽  
Small And Medium Enterprises ◽  
Sustainable Growth ◽  
Added Value ◽  
Easy Access ◽  
The European Union ◽  
Access To Finance ◽  
Medium Enterprises ◽  
The Eu

The role of Small and Medium Enterprises (SMEs) is unquestionable in the European economies, while financial opportunities are still inadequate for them. The more than 20 million SMEs play a significant role in European economic growth, innovation and job creation. According to the latest EC Annual Report , SMEs are accounting for 99% of all non-financial enterprises, employing 88.8 million people and generating almost EUR 3.7 tn in added value for our economy. Despite the fact that there is plenty of EU funding available for these SMEs, for certain reasons these funds hardly reach them. But we have to see that the EU supports SMEs by various way, e.g. by grants, regulatory changes, financial instrument, direct funds. On the other hand, SMEs and decision makers realised that the environmental sustainability has to be attached to the economic growth, therefore more and more tools are available for these enterprises. Over the last few years, public institutions, the market, the financial community and non-governmental associations have explicitly demanded that firms improve their environmental performance. One of the greatest opportunities might lay in the Climate- and Energy Strategy till 2030 as 20% of the EU budget is allocated to climate-related actions, however the easy access to finance is still a key question. Does the EU recognise the actual difficulties? Is there a systemic reason behind the absorption problems? Is the EU creating a more businessfriendly environment for SMEs, facilitating access to finance, stimulates the green and sustainable growth and improving access to new markets? The paper analyses the current European situation of the SMEs and the effectiveness of some new tools, which are specially targeting SMEs. JEL classification: Q18

scholarly journals Factors behind trade credit financing of SMEs in Croatia

2020 ◽  
Vol 8 (1) ◽  
pp. 59-76
Author(s):  
Sandra Pepur ◽  
Dujam Kovač ◽  
Marijana Ćurak
Keyword(s):  
Trade Credit ◽  
Small And Medium Enterprises ◽  
Added Value ◽  
Knowledge Generation ◽  
External Financing ◽  
The European Union ◽  
East European ◽  
Funding Sources ◽  
Credit Financing ◽  
Medium Enterprises

Small and medium enterprises (SMEs) contribute to the national economy in terms of employment, added value, knowledge generation, and innovation. However, their potential and in the case of economic downturns even their survival is affected by the difficulties in their access to external financing under acceptable terms and adequate timing and amount. In the case of asymmetric information problems, which make SMEs more sensitive to financial market imperfections, trade credit can be a valuable source of financing. In the European Union, trade credit is among the most relevant external funding sources and it is among the most important alternatives to financial intermediaries’ financing. However, there are substantial differences between the countries with respect to availability and use of trade credit. Therefore, this research examines determining (company-specific and country-specific) factors behind the use of trade credit as a financing source in Croatia. The empirical analysis is based on the data for 1,225 SMEs operating in Croatia in the period from 2008 to 2017 and is done using the panel data methodology. The findings confirm that firms’ characteristics, as well as the characteristics of financial, macroeconomic and legal environment in which the firms operate, influence the use of trade credit in SMEs in Croatia. The paper contributes to relatively scarce empirical evidence on the determinants of trade credit use by SMEs in South-East European countries.

Entrepreneurship and Enterprise Value Creation in Support of Smart, Sustainable, and Inclusive Growth in the European Union

2017 ◽  
pp. 268-292
Author(s):  
Julia S. Stefanova ◽  
Zachary Wenner
Keyword(s):  
European Union ◽  
Value Creation ◽  
Global Financial Crisis ◽  
Small And Medium Enterprises ◽  
Monitoring And Evaluation ◽  
Inclusive Growth ◽  
The European Union ◽  
Environmentally Sustainable ◽  
The Global Financial Crisis ◽  
Medium Enterprises

In 2010, the European Union codified “Smart, Sustainable, and Inclusive Growth” (SSIG) as part of the Europe 2020 Strategy. Introduced in the context of the global financial crisis, SSIG seeks to restore economic resiliency and foster a more equitable, innovative and environmentally sustainable European economy. The research evaluates the processes of entrepreneurship through which small and medium enterprises (SMEs) contribute to SSIG, including through “innovation-driven entrepreneurship,” “sustainable entrepreneurship” and “social entrepreneurship.” The research additionally assesses the creation of an enabling regulatory and fiscal environment for these modes of value creation, their associated socio-economic outcomes and their monitoring and evaluation practices.

scholarly journals Tax-Related Burden on SMEs in the European Union: The Case of Slovenia

2019 ◽  
Vol 10 (2) ◽  
pp. 69-79
Author(s):  
Dejan Ravšelj ◽  
Polonca Kovač ◽  
Aleksander Aristovnik
Keyword(s):  
European Union ◽  
Small And Medium Enterprises ◽  
Early Stage ◽  
Hierarchical Cluster ◽  
Entrepreneurial Activity ◽  
The European Union ◽  
Business Operations ◽  
New Business ◽  
Red Tape ◽  
Medium Enterprises

Abstract Small and medium enterprises (SMEs) are very important for the European economy. However, SMEs often encounter various barriers, whereby tax-related barriers are perceived as the most burdensome that affects their business operations and entrepreneurial activity in general. The aim of this paper is twofold. First, it attempts to identify SMEs perception on current state and measures to be carried out in order to reduce respective red tape. Second, it tries to establish the relationship between burdens imposed by tax policy and entrepreneurial activity. Using hierarchical cluster analysis and descriptive statistics two different datasets are analyzed for the European Union (EU) and Slovenia separately. The results provide evidence that tax burden is less influential than tax administrative burden among EU countries by considering their impact on new business density and total early-stage entrepreneurial activity. Additionally, the results for Slovenia reveal that the need for a stable tax system, with IT and procedurally related measures are highlighted.

scholarly journals Problem pomocy dla małych i średnich przedsiębiorstw w Polsce po akcesji do Unii Europejskiej

2010 ◽  
Vol 6 ◽  
pp. 310-323
Author(s):  
Janina Pach ◽  
Mieczysława Solińska
Keyword(s):  
European Union ◽  
Competition Policy ◽  
Small And Medium Enterprises ◽  
State Aid ◽  
The European Union ◽  
The Common ◽  
Medium Enterprises ◽  
Investment Capacity ◽  
Crucial Condition

Small and medium enterprises (SME) play an important role both in Poland and other countries of the European Union. Their contribution both as a percentage of the total number of enterprises, in general employment and in the production of particular products and gross domestic product confirms their importance for economy.The role of SME in Poland would be greater if the indicator of their activity (which is now below 50%) was higher, and the sustainability of SME’s was improved. Moreover, the crucial condition for enlargement of SME’s importance is the improvement of their investment capacity and increasing expenditure on research and development in this sector. About 50% of entrepreneurs fail to make any investments and do not conduct any research that determine national and international competitiveness. There are many reason for this situation, especially financial limitations, which can be supplemented by state aid. However, there are some restrictions on supporting SME’s by government as a result of the Common European Competition Policy. One of its basic rules is prohibition of state aid that deforms and limits competition, which is a base of economic development. In this situation state aid is allowed only on condition that its implementation does not restrict competition. The size and type, conditions and circumstances of state aid and its duration are precisely stipulated by the regulations.

Entrepreneurship and Enterprise Value Creation in Support of Smart, Sustainable, and Inclusive Growth in the European Union

2017 ◽  
pp. 825-849
Author(s):  
Julia S. Stefanova ◽  
Zachary Wenner
Keyword(s):  
European Union ◽  
Value Creation ◽  
Global Financial Crisis ◽  
Small And Medium Enterprises ◽  
Monitoring And Evaluation ◽  
Inclusive Growth ◽  
The European Union ◽  
Environmentally Sustainable ◽  
The Global Financial Crisis ◽  
Medium Enterprises

In 2010, the European Union codified “Smart, Sustainable, and Inclusive Growth” (SSIG) as part of the Europe 2020 Strategy. Introduced in the context of the global financial crisis, SSIG seeks to restore economic resiliency and foster a more equitable, innovative and environmentally sustainable European economy. The research evaluates the processes of entrepreneurship through which small and medium enterprises (SMEs) contribute to SSIG, including through “innovation-driven entrepreneurship,” “sustainable entrepreneurship” and “social entrepreneurship.” The research additionally assesses the creation of an enabling regulatory and fiscal environment for these modes of value creation, their associated socio-economic outcomes and their monitoring and evaluation practices.

scholarly journals Definition of Micro, Small and Medium Enterprise under the Guidelines of the European Union

2019 ◽  
Vol 12 (2) ◽  
pp. 165-190
Author(s):  
Monika Raczyńska
Keyword(s):  
European Union ◽  
Small And Medium Enterprises ◽  
Descriptive Analysis ◽  
Research Problem ◽  
The European Union ◽  
Effect Analysis ◽  
Medium Enterprise ◽  
Definition Of ◽  
Medium Enterprises

AbstractResearch problem: It should be remembered that projects co-financed from European Union funds are a special type of projects to which additional guidelines apply. Awareness of the regulation may help enterprises avoid erroneous categorization or loss of SME status resulting in non-awarding or reimbursement of subsidies with tax interest. The problem is still valid, because EU projects are and will be implemented and must preserve the so-called durability. The validity of the topic can be confirmed by the fact that definitional problems appear all the time, which are even dealt with in court.Thesis: The definition of micro, small and medium enterprises under the European Union guidelines requires special attention when applying for EU funding.The aim of the article is to present the issues related to the qualification of an entity to the category of micro, small and medium-sized enterprises in the context of using EU funds.The research methods were applied in the article: in the theoretical part – literature studies, comparative analysis, in the empirical part – case study, causal and effect analysis, descriptive analysis.

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