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Risk Assessment of the SME Sector Operations during the COVID-19 Pandemic

Author

Listed:
  • Katarzyna Grondys

    (The Management Faculty, Czestochowa University of Technology, 42-201 Czestochowa, Poland)

  • Oliwia Ślusarczyk

    (The Management Faculty, Czestochowa University of Technology, 42-201 Czestochowa, Poland
    Geneva School of Economics and Management, University of Geneva, 1205 Geneva, Switzerland)

  • Hafezali Iqbal Hussain

    (Taylor’s Business School, Taylor’s University, 1 Jalan Taylors, Subang Jaya 47500, Malaysia
    University of Economics and Human Sciences, 01-030 Warszawa, Poland)

  • Armenia Androniceanu

    (Faculty of Administration and Public Management, The Bucharest University of Economic Studies, 010374 Bucharest, Romania
    Research Department, University of Social Sciences, 90-113 Lodz, Poland)

Abstract

The subject matter of the article relates to the assessment of the perception of selected types of risk in economic activities of the SME sector, which change their intensity as a result of the outbreak of the COVID-19 pandemic. The current economic downturn is unprecedented and involves many companies and industries that have faced new, previously unknown challenges and threats. The objective of the article is to identify the most important risks and their resources based on the empirical research carried out in small and medium-sized enterprises in Poland. The formulated objective was accomplished using the data collection method, i.e., the survey and reports on the condition of the SME sector in Poland as well as statistical data analysis methods, i.e., structure index and the analysis of variance, using the SPSS system. The process of primary data collection was carried out by means of an electronic survey among selected enterprises of the SME sector, conducting business activities in Poland. In the study, the employment factor was taken into account as a determinant of the perception and assessment of the intensity of selected risks arising from the economic activity in the Polish market in the conditions of the current economic downturn. On the basis of the obtained results, the impact of market, economic, financial and operational risks, depending on their intensity, on the functioning of micro-, small and medium-sized enterprises was identified. Based on the analysis of variance, the effect of the size of the company on the level of individual risks was also examined. As a result of the observations made, it was established that, during the pandemic, the level and type of risk is similar in all the surveyed enterprises. They are most often threatened by strong competition in the industry, an increase in energy prices and insufficient profit. The overall results of the empirical research indicate the importance and the need to manage the key threats to the Polish SME sector.

Suggested Citation

  • Katarzyna Grondys & Oliwia Ślusarczyk & Hafezali Iqbal Hussain & Armenia Androniceanu, 2021. "Risk Assessment of the SME Sector Operations during the COVID-19 Pandemic," IJERPH, MDPI, vol. 18(8), pages 1-19, April.
    • Handle: RePEc:gam:jijerp:v:18:y:2021:i:8:p:4183-:d:536631
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    Cited by:

    1. Ambroziak Adam A., 2022. "Forms of COVID-19 state aid by beneficiary size in Poland in 2020," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 58(1), pages 44-63, March.
    2. Ane-Mari ANDRONICEANU & Jani KINNUNEN & Irina GEORGESCU, 2021. "Entrepreneurial Motivations To Start New Businesses: A Panel Data Analysis," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 15(1), pages 479-491, November.
    3. Eugine Nkwinika & Segun Akinola, 2023. "The importance of financial management in small and medium-sized enterprises (SMEs): an analysis of challenges and best practices," Technology audit and production reserves, PC TECHNOLOGY CENTER, vol. 5(4(73)), pages 12-20, September.
    4. Tadios Munodawafa & Micheline Naude & Krishna K. Govender, 2024. "Assuring the Sustainability and Growth of Small and Medium-Sized Manufacturing Enterprises in Botswana: An Exploratory Study," International Journal of Economics and Financial Issues, Econjournals, vol. 14(4), pages 253-266, July.
    5. Agnieszka Janik & Adam Ryszko, 2023. "Sustainability Reporting during the Crisis—What Was Disclosed by Companies in Response to the COVID-19 Pandemic Based on Evidence from Poland," Sustainability, MDPI, vol. 15(17), pages 1-54, August.

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