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A study regarding the risk of the micro-entreprises in the Dolj district


  • Lucian BUSE
  • Marian SIMINICA
  • Mirela GANEA

    (University of Craiova)


The study of the risk has become very important in the last years, due to the increase of the competition on the Romanian market and also due to the consolidation of the market economy mechanisms that have determined the augmentation of the number of bankruptcies in Romania. The micro-enterprises are, obviously, the most exposed at the risk of bankruptcy, fact that justifies a study of the risk that these enterprises face. In this paper, we have analyzed the risk of the micro-enterprises during the period 2004-2005, on a database that included 1401 companies. For this aim, we have used two specific instruments: a score function, for the estimation of the bankruptcy risk, and the degrees of leverage, for the assessment of the operating and financial risk. After making this study, we noticed that the micro-enterprises from the Dolj District have dealt with a risk augmentation in 2005, fact emphasized both by the decrease of the average score and by the augmentation of the weight of the bankrupt companies in the total number of analyzed enterprises. Also, the other drawn conclusion was linked with the lack of correlation between the Z score and the degrees of operating and financial leverage, due to the different foundations of these instruments in appreciating the risk dimension.

Suggested Citation

  • Lucian BUSE & Daniel CIRCIUMARU & Marian SIMINICA & Mirela GANEA, 2008. "A study regarding the risk of the micro-entreprises in the Dolj district," Annals of University of Craiova - Economic Sciences Series, University of Craiova, Faculty of Economics and Business Administration, vol. 1(36), pages 16-25, May.
  • Handle: RePEc:aio:aucsse:v:1:y:2008:i:11:p:16-25

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    risk; score function; degree of operating leverage; degree of financial leverage.;

    JEL classification:

    • O00 - Economic Development, Innovation, Technological Change, and Growth - - General - - - General
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • D00 - Microeconomics - - General - - - General
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty


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