Economic Review, Vol. 68 No. 4, 2017.
Preliminary communication
THE FINANCIAL SECURITY OF SMALLAND MEDIUM-SIZED ENTERPRISES IN POLAND
Jan Zwolak
Abstract
The original contribution of this article resides in the studies carried out by the Author indicating that a 1% increase in the profit on sales, against the unaltered remaining financing funds, is connected with a 0.76% increase in the EU fund for support of market and capital. Against the EU operational fund, the profit on sales proves negative (-0.631). Viewed in the context of the literature indicating certain difficulties in the determination of the financial security category, the impact of technologies and procedures, the impact of unique resources, the increase of entrepreneurial orientation, and access to EU funding, the present research fills the gap in terms of the determination of the regressive relation between the profit on sales on the one hand, and the EU fund for the support of the market and capital and the EU operational fund on the other. The regressive relation is expressed by flexibility coefficients (parameters) of the power function (model). They contribute to the
economic literature with their empirical model based on the Cobb-Douglas power function, whilst the model contributes to the theory related to the financial security of enterprises (model = theory). The principal research tool used in the present study is the Cobb-Douglas power model used to examine the regressive dependency of profit on sales upon the EU operational fund and the EU fund for support of the market and capital as for the years 2014–2020. The model has also been used to calculate the marginal and average profitability for the aforesaid funds as measures of the efficiency of their financial security with small- and medium-sized enterprises in Poland. Moreover, the market/capital support fund remains within the sound management zone of the enterprises under research.
Keywords
ROS (profit margin/return on sales); financial safety/security; EU funds/funding; SMSE (small and medium sale enterprise); model
Hrčak ID:
187556
URI
Publication date:
12.10.2017.
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