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Business companies' financing peculiarities in conditions of Slovakia

Author

Listed:
  • Andrea Seňová

    (Technical University of Košice, Slovakia)

  • Katarína Čulková

    (Technical University of Košice, Slovakia)

  • Marcela Taušová

    (Technical University of Košice, Slovakia)

  • Katarína Teplická

    (Technical University of Košice, Slovakia)

Abstract

Growth becomes one of the factors influencing a business's ability to obtain financial sources. Anyway, many SMEs still need help finding out finances for their business. The contribution deals with business financing in Slovakia, intending to find out what financing possibilities are not used and to offer a solution for the problematic financing. The paper aims to answer three research questions in business financing from the view of classical and modern financing, from the perspective of territorial structure and from the standpoint of the business's legal form. To find out the actual situation in business financing in Slovakia (selected as a representative of one of V4 countries having similar development), we used questionnaire research from talking companies from different sectors and legal forms of business. Consequent data was obtained from the official database of financial reports in Slovakia. The questionnaire results are used for cluster analysis with the Ward method. The research, orientated to financial source use, proved that internal sources present the most significant rate of business activities financing. The results suggested how to increase the effectiveness of business financing by considering modern financing forms.

Suggested Citation

  • Andrea Seňová & Katarína Čulková & Marcela Taušová & Katarína Teplická, 2023. "Business companies' financing peculiarities in conditions of Slovakia," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 10(4), pages 48-70, June.
    • Handle: RePEc:ssi:jouesi:v:10:y:2023:i:4:p:48-70
    DOI: 10.9770/jesi.2023.10.4(4)
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    References listed on IDEAS

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    1. Wolfgang Drobetz & Roger Fix, 2005. "What are the Determinants of the Capital Structure? Evidence from Switzerland," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 141(I), pages 71-113, March.
    2. Askar N. Mustafin* & Jaroslav Gonos & Katarína ?ulková, 2018. "Development of Small and Medium-Sized Enterprises on the Example of the Russian Federation and the Slovak Republic," The Journal of Social Sciences Research, Academic Research Publishing Group, pages 85-89:5.
    3. Ding, Shujun & Jia, Chunxin & Wu, Zhenyu & Yuan, Wenlong, 2017. "Limited attention by lenders and small business debt financing: Advertising as attention grabber," International Review of Financial Analysis, Elsevier, vol. 49(C), pages 69-82.
    4. Kent Baker, H. & Kumar, Satish & Rao, Purnima, 2020. "Financing preferences and practices of Indian SMEs," Global Finance Journal, Elsevier, vol. 43(C).
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    business financing; credit; leasing; risk capital; Slovakia;
    All these keywords.

    JEL classification:

    • D25 - Microeconomics - - Production and Organizations - - - Intertemporal Firm Choice: Investment, Capacity, and Financing
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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