The Importance of Financial Management in Small and Medium-sized Entrepreneurship

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F62156489%3A43310%2F17%3A43911687" target="_blank" >RIV/62156489:43310/17:43911687 - isvavai.cz</a>

Result on the web

<a href="https://is.muni.cz/do/econ/sborniky/70896034/Proceedungs_EFS2017-Draft.pdf" target="_blank" >https://is.muni.cz/do/econ/sborniky/70896034/Proceedungs_EFS2017-Draft.pdf</a>

DOI - Digital Object Identifier

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Result language

angličtina

Original language name

The Importance of Financial Management in Small and Medium-sized Entrepreneurship

Original language description

Current practice and researches show that the decisive factor of long-term success is the prioritization of effective financial management. However, enterprises, especially small and medium-sized enterprises, often confuse the principles of financial management with functioning accounting. Underestimating the role of financial management may be the reason for the impossibility of developing small and mediumsized enterprises. The main objective of this paper is therefore to evaluate the importance of financial management that SMEs attribute to the financial management aspects on their long-term development. The partial objective of the paper is to identify whether SMEs evaluating financial management as more important are more financially successful than SMEs evaluating financial management as less important. The fulfilment of the main and partial objective of the paper is fulfilled through methods of personal polling, selected methods of financial analysis and selected methods of statistical induction. The research is carried out on a selected sample of small and medium-sized enterprises based on selected restrictive criteria. The research has shown that small and medium-sized enterprises are undermining the importance of financial management and do not attribute the same strategic importance of financial management on their business development. At the same time, it was confirmed that SMEs evaluating financial management as more important are more financially successful (higher volume of assets, ROE and EAT) than SMEs that do not do so.

Czech name

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Czech description

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Type

D - Article in proceedings

CEP classification

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OECD FORD branch

50602 - Public administration

Project

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Continuities

S - Specificky vyzkum na vysokych skolach

Publication year

2017

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Article name in the collection

European Financial Systems 2017: Proceedings of the 14th International Scientific Conference

ISBN

978-80-210-8609-8

ISSN

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e-ISSN

neuvedeno

Number of pages

10

Pages from-to

373-382

Publisher name

Masarykova univerzita

Place of publication

Brno

Event location

Brno

Event date

Jun 26, 2017

Type of event by nationality

WRD - Celosvětová akce

UT code for WoS article

000418110800045