IDEAS home Printed from https://ideas.repec.org/a/rom/rampas/v2021y2021i36p181-195.html
   My bibliography  Save this article

Perceiving Of Legal Risk And The Role Of Public Sector In Smes Of V4 Countries

Author

Listed:
  • Zuzana VIRGLEROVÁ

    (Tomas Bata University in Zlín, Faculty of Management and Economics, Zlín; Czech Republic)

  • Jaroslav BELÁS, Jr.

    (Alexander Dubcek University of Trencín, Faculty of Social and Economic Relations, Trencín; Slovakia)

  • Katarzyna KURZEPA-DEDO

    (University of Information Technology and Management in Rzeszow, Chair of Political Sciences and Administration, Rzeszow, Poland)

  • Tomáš KRULICKÝ

    (nstitute of Technology and Business in Ceské Budejovice, School of Expertness and Valuation, Ceské Budejovice, Czech Republic)

Abstract

The public sector plays an important role in the process of creating a quality of business environment. The objective of the paper was to present new scientific knowledge in the field of legal risk in the SMEs sector of the V4 countries. For this purpose, weights of selected factors of legal risk were quantified and there were compared the trends of the Czech Republic with other V4 countries. Empirical research was conducted via questionnaire survey on a sample of 1.585 respondents. On the basis of the research conducted, it can be concluded that the level of legal risk in the V4 countries was relatively high; this risk negatively affects business activities in the SMEs of the V4 countries. A major part of enterprises in the V4 countries evaluate the legal risk as unacceptable. Entrepreneurs in the V4 countries negatively evaluated the fact that the dynamics of legislative changes is too intensive and has a negative impact on their business activities. SMEs in the V4 countries considered the business environment to be too strictly regulated. On the other hand, entrepreneurs showed a high level of self-confidence in the knowledge of basic legal norms in business. Legal risk is perceived differently in individual countries. The lowest intensity of legal risk is perceived by SMEs in Hungary; the highest level of perceiving legal risk was shown in Poland. Empirical research showed that the size of enterprise and education of entrepreneurs do not have a significant impact on the formation of entrepreneurs´ attitudes in terms of legal risk.

Suggested Citation

  • Zuzana VIRGLEROVÁ & Jaroslav BELÁS, Jr. & Katarzyna KURZEPA-DEDO & Tomáš KRULICKÝ, 2021. "Perceiving Of Legal Risk And The Role Of Public Sector In Smes Of V4 Countries," REVISTA ADMINISTRATIE SI MANAGEMENT PUBLIC, Faculty of Administration and Public Management, Academy of Economic Studies, Bucharest, Romania, vol. 2021(36), pages 181-195, June.
    • Handle: RePEc:rom:rampas:v:2021:y:2021:i:36:p:181-195
    as

    Download full text from publisher

    File URL: https://ramp.ase.ro/_data/files/articole/2021/36-11.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Giulio Bottazzi & Angelo Secchi & Federico Tamagni, 2014. "Financial constraints and firm dynamics," Small Business Economics, Springer, vol. 42(1), pages 99-116, January.
    2. Giulio Bottazzi & Angelo Secchi & Federico Tamagni, 2014. "Financial constraints and firm dynamics," Small Business Economics, Springer, vol. 42(1), pages 99-116, January.
    3. Giulio Bottazzi & Angelo Secchi & Federico Tamagni, 2014. "Financial constraints and firm dynamics," Small Business Economics, Springer, vol. 42(1), pages 99-116, January.
    4. Dominik Zimon, 2017. "An Influence Of Quality Management System For Improvement Of Logistics Supply," Working Papers 149/2017, Institute of Economic Research, revised May 2017.
    5. Andreas Rauch & Serge A. Rijsdijk, 2013. "The Effects of General and Specific Human Capital on Long–Term Growth and Failure of Newly Founded Businesses," Entrepreneurship Theory and Practice, , vol. 37(4), pages 923-941, July.
    6. Matthias Brachert & Walter Hyll & Mirko Titze, 2017. "On the simultaneity bias in the relationship between risk attitudes, entry into entrepreneurship and entrepreneurial survival," Applied Economics Letters, Taylor & Francis Journals, vol. 24(7), pages 477-480, April.
    7. Jaroslav BELAS & Lubomir BELAS & Martin CEPEL & Zoltan ROZSA, 2019. "The Impact Of The Public Sector On The Quality Of The Business Environment In The Sme Segment," REVISTA ADMINISTRATIE SI MANAGEMENT PUBLIC, Faculty of Administration and Public Management, Academy of Economic Studies, Bucharest, Romania, vol. 2019(32), pages 18-31, June.
    8. Pavel Taraba & Martin Hart & Katerina Pitrova, 2016. "Risk Management Of Projects In The Czech Republic," Polish Journal of Management Studies, Czestochowa Technical University, Department of Management, vol. 13(1), pages 181-191, June.
    9. Dominik Zimon, 2017. "The influence of quality management systems for improvement of logistics supply in Poland," Oeconomia Copernicana, Institute of Economic Research, vol. 8(4), pages 643-655, December.
    10. Pekka Stenholm & Zoltán J. Ács & Robert Wuebker, 2015. "Exploring country-level institutional arrangements on the rate and type of entrepreneurial activity," Chapters, in: Global Entrepreneurship, Institutions and Incentives, chapter 20, pages 387-404, Edward Elgar Publishing.
    11. Kayes, D. Christopher & Stirling, David & Nielsen, Tjai M., 2007. "Building organizational integrity," Business Horizons, Elsevier, vol. 50(1), pages 61-70.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sam Z. Njinyah & Simplice A. Asongu, 2023. "Unregistered Firms, Financial Access and Innovation," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 32(2), pages 307-346, July.
    2. Tom Broekel & Matthias Brachert & Matthias Duschl & Thomas Brenner, 2015. "Joint R and D subsidies, related variety, and regional innovation," Working Papers on Innovation and Space 2015-01, Philipps University Marburg, Department of Geography.
    3. Petr Korab & Jitka Pomenkova, 2017. "Credit Rationing in Greece During and After the Financial Crisis," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 67(2), pages 119-139, April.
    4. Falavigna, Greta & Ippoliti, Roberto, 2023. "SMEs’ behavior under financial constraints: An empirical investigation on the legal environment and the substitution effect with tax arrears," The North American Journal of Economics and Finance, Elsevier, vol. 66(C).
    5. Angelo Secchi & Federico Tamagni & Chiara Tomasi, 2016. "Financial constraints and firm exports: accounting for heterogeneity, self-selection, and endogeneity," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 25(5), pages 813-827.
    6. Stefano Bianchini & Giulio Bottazzi & Federico Tamagni, 2017. "What does (not) characterize persistent corporate high-growth?," Small Business Economics, Springer, vol. 48(3), pages 633-656, March.
    7. Thomas Brenner & Matthias Duschl, 2018. "Modeling Firm and Market Dynamics: A Flexible Model Reproducing Existing Stylized Facts on Firm Growth," Computational Economics, Springer;Society for Computational Economics, vol. 52(3), pages 745-772, October.
    8. Kadochnikov, Sergey M. & Fedyunina, Anna A., 2017. "The impact of financial and human resources on the export performance of Russian firms," Economic Systems, Elsevier, vol. 41(1), pages 41-51.
    9. Sam Njinyah & Simplice A. Asongu & Sally Jones, 2022. "The role of mobile money adoption in moderating the influence of access to finance in firm performance," Working Papers of the African Governance and Development Institute. 22/075, African Governance and Development Institute..
    10. Francesco Aiello & Graziella Bonanno & Stefania P. S. Rossi, 2020. "How firms finance innovation. Further empirics from European SMEs," Metroeconomica, Wiley Blackwell, vol. 71(4), pages 689-714, November.
    11. Edoardo Ferrucci & Roberto Guida & Valentina Meliciani, 2021. "Financial constraints and the growth and survival of innovative start‐ups: An analysis of Italian firms," European Financial Management, European Financial Management Association, vol. 27(2), pages 364-386, March.
    12. Angelo Secchi & Federico Tamagni & Chiara Tomasi, 2016. "Export price adjustments under financial constraints," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 49(3), pages 1057-1085, August.
    13. Cristina Guillamón & Enrique Moral-Benito & Sergio Puente, 2017. "High growth firms in employment and productivity: dynamic interactions and the role of financial constraints?," Working Papers 1718, Banco de España.
    14. Thomas Brenner & Matthias Duschl, 2015. "Causal dynamic effects in regional systems of technological activities: a SVAR approach," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 55(1), pages 103-130, October.
    15. Giulio Bottazzi & Taewon Kang & Federico Tamagni, 2023. "Persistence in firm growth: inference from conditional quantile transition matrices," Small Business Economics, Springer, vol. 61(2), pages 745-770, August.
    16. Giovanni Dosi & Daniele Moschella & Emanuele Pugliese & Federico Tamagni, 2015. "Productivity, market selection, and corporate growth: comparative evidence across US and Europe," Small Business Economics, Springer, vol. 45(3), pages 643-672, October.
    17. Céline Antonin & Mattia Guerini & Mauro Napoletano & Francesco Vona, 2019. "Italy : escaping the high debt and low-growth trap," Sciences Po publications info:hdl:2441/me28b7aoi8k, Sciences Po.
    18. Sam Njinyah & Simplice A. Asongu, 2022. "The relationship between firms that start operating as unregistered and firms’ innovation: the moderating effect of access to finance," Working Papers 22/099, European Xtramile Centre of African Studies (EXCAS).
    19. Daniele Moschella & Federico Tamagni & Xiaodan Yu, 2019. "Persistent high-growth firms in China’s manufacturing," Small Business Economics, Springer, vol. 52(3), pages 573-594, March.
    20. Giulio Bottazzi & Davide Pirino & Federico Tamagni, 2015. "Zipf law and the firm size distribution: a critical discussion of popular estimators," Journal of Evolutionary Economics, Springer, vol. 25(3), pages 585-610, July.

    More about this item

    Keywords

    government; legal framework; small and medium-sized enterprises; legal risk; V4 countries;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • K2 - Law and Economics - - Regulation and Business Law
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rom:rampas:v:2021:y:2021:i:36:p:181-195. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Androniceanu Armenia (email available below). General contact details of provider: https://edirc.repec.org/data/ccasero.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.