Strategic management in micro, small and medium-sized businesses in relation to financial success of the enterprise

Monika Švárová and Jaroslav Vrchota
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Monika Švárová: Department of Management, Faculty of Economics, University of South Bohemia in České Budějovice, Studentská 13, 370 05 České Budějovice, Czech Republic
Jaroslav Vrchota: Department of Management, Faculty of Economics, University of South Bohemia in České Budějovice, Studentská 13, 370 05 České Budějovice, Czech Republic

Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 2013, vol. 61, issue 7, 2859-2866

Abstract: Small and medium sized enterprises play an essential role in the economy of the Czech Republic as a report of development of small and medium-sized enterprises and its support from 2010 announces. They are the source of development of towns, regions and the state itself. Small and medium-sized enterprises represent 99.84 % of the whole business subjects. Statistic data underline this position - they indicate that small and medium-sized enterprises employ 2/3 employees. Therefore, occupying small and medium-sized enterprises are to be taken as priority.Strategic management on the level of small and medium-sized enterprises is, as number of authors write, diverse. Small enterprises including micro have less access to capital, they have no money for employing specialists in the field, and they solve administration primarily. The aim of this follow-up GAJU project contribution concerned on process analysis of small and medium-sized enterprises is to summarize the gained results from the view of comparison of the level of strategic management in small and medium-sized enterprises.Nowadays, numbers of enterprises are thinking about whether they are able to remain in the market as an established company, they explore the possibility of improving its position. There is a question for small and medium-sized enterprises management - can strategic management be used as an instrument for increasing competitiveness? The results show that SMEs with a clearly defined strategy show better results of financial health (IN99 and ROA) than companies without a defined strategy. In terms of business focus, we were able to demonstrate positive relationship between strategy and finance only for companies in the construction industry, on the significance level of 0.05. Compared to manufacturers and service-providing companies where this relation is not statistically significant.

Keywords: strategic management; strategy; IN99; ROA (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:mup:actaun:actaun_2013061072859

DOI: 10.11118/actaun201361072859

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