IDEAS home Printed from https://ideas.repec.org/a/ssi/jouesi/v10y2023i4p48-70.html
   My bibliography  Save this article

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)
    as

    Download full text from publisher

    File URL: https://jssidoi.org/jesi/uploads/articles/40/Senova_Business_companies_financing_peculiarities_in_conditions_of_Slovakia.pdf
    Download Restriction: no
    File URL: https://jssidoi.org/jesi/article/1079
    Download Restriction: no
    File URL: https://libkey.io/10.9770/jesi.2023.10.4(4)?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. 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.
    2. 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.
    3. 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.
    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)

    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. Zhang, Lu & Cui, Li & Chen, Lujie & Dai, Jing & Jin, Ziyi & Wu, Hao, 2023. "A hybrid approach to explore the critical criteria of online supply chain finance to improve supply chain performance," International Journal of Production Economics, Elsevier, vol. 255(C).
    2. Drobetz, Wolfgang & Pensa, Pascal & Wöhle, Claudia B., 2004. "Kapitalstrukturtheorie in Theorie und Praxis: Ergebnisse einer Fragebogenuntersuchung," Working papers 2004/09, Faculty of Business and Economics - University of Basel.
    3. Babl, Christian & Fausel, Andreas & Kuhlman, Leonard & Schiereck, Dirk, 2014. "Werteffekte auf Anleiheemissionen: Eine Note für deutsche Emittenten," Die Unternehmung - Swiss Journal of Business Research and Practice, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 68(1), pages 8-22.
    4. Jing Gu & Junyao Wang & Yang Yang & Zeshui Xu, 2019. "Credit Line Models for Supply Chain Enterprises with Channel Background and Soft Information," Sustainability, MDPI, vol. 11(10), pages 1-20, May.
    5. Agyekum, Francis K. & Reddy, Krishna & Wallace, Damien & Wellalage, Nirosha H., 2022. "Does technological inclusion promote financial inclusion among SMEs? Evidence from South-East Asian (SEA) countries," Global Finance Journal, Elsevier, vol. 53(C).
    6. Sushma Verma & Samik Shome & Aakruti Patel, 2024. "Exploring the Effects of Firm-Specific Factors on Financing Preferences of Listed SMEs in India," Business Perspectives and Research, , vol. 12(1), pages 149-163, January.
    7. Chen, Xiaohui & Shen, Shaowei, 2024. "Probability causal inference of interest rate fluctuations: Evidence from private credit in emerging markets," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    8. Ștefan Cristian Gherghina & Mihai Alexandru Botezatu & Alexandra Hosszu & Liliana Nicoleta Simionescu, 2020. "Small and Medium-Sized Enterprises (SMEs): The Engine of Economic Growth through Investments and Innovation," Sustainability, MDPI, vol. 12(1), pages 1-22, January.
    9. Manpreet Kaur & Kanwaljeet Singh & Sarita Arora, 2023. "Are SMEs relationship seekers or price watchers? Target marketing implications for banks," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 28(3), pages 615-625, September.
    10. Quratulain Zafar & Winai Wongsurawat & David Camino, 2019. "The determinants of leverage decisions: Evidence from Asian emerging markets," Cogent Economics & Finance, Taylor & Francis Journals, vol. 7(1), pages 1598836-159, January.
    11. Reyes, Tomas & Batista, Julian A. & Chacon, Alvaro & Martinez, Diego & Kausel, Edgar E., 2023. "Attention-driven reaction to extreme earnings surprises," The Quarterly Review of Economics and Finance, Elsevier, vol. 92(C), pages 230-248.
    12. Dobetz, Wolfgang & Grüninger, Matthias C., 2006. "Corporate cash holdings: Evidence from a different institutional setting," Working papers 2006/06, Faculty of Business and Economics - University of Basel.
    13. Shah, Mumtaz Hussain & Khan, Atta Ullah, 2017. "Factors determining capital structure of Pakistani non-financial firms," MPRA Paper 82015, University Library of Munich, Germany.
    14. Drobetz, Wolfgang & Pensa, Pascal & Wanzenried, Gabrielle, 2007. "Firm Characteristics, Economic Conditions and Capital Structure Adjustment," Working papers 2007/16, Faculty of Business and Economics - University of Basel.
    15. Charalampos Basdekis & Apostolos Christopoulos & Evgenios Gakias & Ioannis Katsampoxakis, 2023. "The Effect of ECB Unconventional Monetary Policy on Firms’ Performance during the Global Financial Crisis," JRFM, MDPI, vol. 16(5), pages 1-20, April.
    16. Que, Jiangjing & Zhang, Xueyong, 2021. "Money chasing hot industries? Investor attention and valuation of venture capital backed firms," Journal of Corporate Finance, Elsevier, vol. 68(C).
    17. Cristina Aybar-Arias & Alejandro Casino-Martínez & José López-Gracia, 2012. "On the adjustment speed of SMEs to their optimal capital structure," Small Business Economics, Springer, vol. 39(4), pages 977-996, November.
    18. Fangbin Qian & Yuanjie Pu & Yunfeng Shang, 2023. "Financing preferences and practices for developing sustainable exhibitions in Chinese companies," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-8, December.
    19. Wolfgang Drobetz & Gabrielle Wanzenried, 2006. "What determines the speed of adjustment to the target capital structure?," Applied Financial Economics, Taylor & Francis Journals, vol. 16(13), pages 941-958.
    20. Hsu, Ching-Chi & Chen, Miao-Ling, 2018. "Timing of advertising and the MAX effect," Journal of Behavioral and Experimental Finance, Elsevier, vol. 20(C), pages 105-114.

    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

    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:ssi:jouesi:v:10:y:2023:i:4:p:48-70. 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: Manuela Tvaronaviciene (email available below). General contact details of provider: .

    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.