Yuriy Bilan

Personal Characteristics of Entrepreneurs in the Context of Perception and Management of Business Risk in the Sme Segment

Abstract. The issue of business in the segment of small and medium-sized companies is a very actual area of scientific research today. Currently, great importance is given to research of personal and knowledge preconditions of people for doing business. The aim of this article was to examine the relationship between personality characteristics and approach to the perception and management of business risks. Based on the preferred personality qualities and knowledge the entrepreneurs have been included into two categories, namely they are artist-entrepreneurs and businessmen-laborers, also the differences in their entrepreneurial attitudes have been examined. Both groups of entrepreneurs in our research rate market risk as the most important risk, which was demonstrated by a decline in performance of companies during the crisis. Our results showed that there are significant differences in the attitudes of these two categories of entrepreneurs in approaching credit risk, where it was found out that the defined categories of business have different approaches to knowledge of credit conditions of commercial banks. The results of our study have showed a high degree of confidence of individual groups of entrepreneurs when evaluating their ability to manage financial risks in the company and the high intensity of entrepreneurial optimism regardless of the personal characteristics of entrepreneurs.Keywords: small and medium enterprises, personal characteristics of entrepreneurs, financial risk, credit riskJEL classification: L26, O16, G21IntroductionSmall and medium-sized enterprises play an important role in the economic system of any developed country.In this context, it is clear that the issue of entrepreneurship in the small and medium-sized companies is very topical area of scientific research. Currently, great importance is given to research of personal and knowledge characteristics of people for business because many of the results that are mentioned below show the fact that to be an entrepreneur does not fit all the people and the business needs a specific properties. These properties may affect the approach to the assessment and management of business risks that significantly influence the success in business.Theoretical backgroundThe business environment is determined by personality characteristics and motives of individual entrepreneurs. Business situations are often unique in their unpredictability, complexity and changing requirements during the business process. Entrepreneurs must be capable to have the features of several personalities at once and as one person to demonstrate the ability to act as investors, inventors, accountants, dispute investigators, leaders, technologists, marketing specialists and top sellers. For this reason, the more knowledge and skills the entrepreneur is capable to demonstrate the better. (Frese, Gielnik, 2014)According to Deakova, Drazovska, Grznarik and Kondasova (2010) the most important personal qualities for an entrepreneur are: courage, self-reliance, responsibility, determination, perseverance, proactive approach, creativity and scholarship in a particular area, where this businessman intends to do business. The entrepreneurs have a tendency to choose themselves an area of business that has a consistency between their personal characteristics and requirements for success. In addition, they tend to manage their business by using their strong and specific qualities. (Sidik, 2012)Kvietok (2013) states, that decision to take on the business risk is symptomatic of a certain type of people. (According to Hvide and Panos, 2014 the individuals who are more risk tolerant are more likely to start up firms.) A significant part of the motivation to take risks in business follows from the success motivation. To achieve the set goals, successful people are willing to take on reasonable risks associated with feedback about the level of achieved results. …

Planning horizon in labour supply of Belarusian small entrepreneurs

Our article focuses on testing the intertemporal substitution hypothesis (ISH) that predicts a positive relationship between hours worked and transitory changes in wages for the owners of Belarusian small and medium enterprises (SMEs). Our results demonstrate that Belarusian entrepreneurs are willing to work a fixed number of hours regardless of their businesses’ performance. Additionally, it appears that females have larger labour supply elasticity than males (it should be noted that male labour supply elasticity becomes even more insignificant when we use robust standard errors). Our results are consistent with the similar findings in USA, Africa, UK and Poland, however, they cannot be generalised for larger companies, since the nature of ISH testing largely depends on the size of the company and its decision-making processes. Our findings suggest that the complicated business environment in Belarus (e.g. difficulties in establishing and running an enterprise, tight bureaucratic control and slow business dynamics) and worsening conditions of the Belarusian economy make small Belarusian entrepreneurs plan their time horizons in a uniquely short-sighted way.

GDP and Net Migration in Some Eastern and South-Eastern Countries of Europe. A Panel Data and Bayesian Approach

This paper analyzes the relationship between the GDP and the net migration using the comparative approach represented by the panel data and Bayesian analysis.

Increase Diversification Through Strengthened Enabling Environment for Entrepreneurship : a Focus on Skill Endowments and Export Orientation (Example of Hungary and Poland)

This Article describing and analyzing the path to export growth and diversification that the two comparator countries (Poland and Hungary) have taken since 1990 with a specific focus on the impact of enabling legal and regulatory environment, education, training and lifelong learning, policies to foster trade and economic integration and stimulate export diversification. Received: July, 2009 1st Revision: October, 2009 Accepted: November, 2009 JEL Classification: F15, F36, L25, M53

Analysis of consumer behaviour in regional energy consumption

Consumer behavior is perceived as an investment which does not yield results in the short run. The traditional economic theory of customer preferences is based on four main elements: customer income, the market price of goods, customer preferences, and behavioral assumption about the maximum of achievable benefits. Even though it sometimes might seem that equalizing energy consumption with behavior is not possible, it can often be described as consequences of behavior, such as turning off the lights or thermostat level reduction for saving power. Our paper demonstrates how the psychological concept of consumer behavior effects energy consumption. It provides recommendations about the incorporation of the idea of uncomplicated information availability for consumers taking into consideration their long-term habits. The novelty of this study is that psychological concept of consumer behavior effects energy consumption in each of the region, therefore, it is recommended to incorporate the idea of uncomplicated information availability for consumers taking into consideration long-term habits. The problem analyzed in the article is how consumer behavior influences energy consumption. The aim of the article is to analyze the consumer behavior in energy consumption. The objectives of the study are two-fold: i) to analyze the element of consumer behavior from the theoretical point of view, and ii) to investigate the patterns of energy consumption. The methods of the study are a logical and comparative analysis of literature, graphics, synthesis, and deduction. Our results and findings can be used by the stakeholders and policy-makers in preparing regional development economic policies and in designing the energy consumption strategies in the framework of the regional development.

ACTUAL PROBLEMS OF BUSINESS RISK IN SME SEGMENT. CASE STUDY FROM SLOVAKIA

Abstract The aim of this article was to define, quantify and compare the significant attributes of business risk for small and medium-sized enterprises (SMEs) in the selected regions of Slovakia. The data was collected through a questionnaire. The whole research was conducted in the Bratislava region on a sample of 102 SMEs, in the region of Trencin on a sample of 105 SMEs and in the Zilina region on a sample of 168 SMEs. Thus we compared important factors of business risk in the most economically developed region of the Slovak capital to the average regions of Trencin and Zilina. On the basis of the results of our research, we can conclude that the most important business risk is market risk in all regions. The average value of perceived market risk was higher than 50%. For this reason entrepreneurs have indicated the existence of negative trends in performance and profitability of their companies.

The Formation of Civil Society in Ukraine after the Orange Revolution

The paper aims to determine the level of public sector development of Ukraine in accordance with the guiding principles of sustainable development. The object of study is a sector of non-governmental organizations (NGOs) that are active in Ukraine since the Orange Revolution. The research subject is the civil society development of Ukraine, which was estimated in accordance with such principles of sustainability as the level of organizational capacity, external relations of the organization (including cooperation with the government, business, media, communities and other public associations), the efficiency of accomplished work and programs stated in the mission of the organization.

The impact of biofuels utilisation in transport on the sustainable development in the European Union

The biofuels sustainability in transport depends on the energetic products demand and the limited resources. According to European legislation, the energy consumption in transport from renewable en...

Shadow Incomes and Real Inequality Within the Framework of Leadership and Social Change

Our paper suggests a new method of assessing income inequality which also allows estimating the contribution of each income decile group to the formation of shadow income. The authors identified the share of shadow incomes of individual population groups in its overall distribution with the assumption that the decile shadow income distribution corresponds to the structure of total expenditure breakdown by the respective population group. The paper normalises the expenditure structure and the availability of individual benefits on the basis of available data (official surveys of expenditure structure, self-assessment of household property and income) taking into account only those types of income and expenditure that have the most obvious signs of positive or negative impact on the opportunities of participation in the underground (or shadow) relations. The authors’ approach revealed significant differences in the estimates of the participation of different decile groups in the real income distribution, particularly in Ukraine, the Gini coefficient, as determined by official data, did not exceed 0.227 in 2015, adjusted by the income distribution indicators – from 0.248 to 0.266 depending on the source of data on the population inequality; a similar difference in the decile dispersion ratio was 4.5 versus 5.24–6.06. Thus, there is strong evidence that such differences should to be taken into account in analysing the real inequality of income distribution while choosing social policy alternatives.

CONSEQUENCES OF ADOPTING THE SCHENGEN ACQUIS FOR THE BORDER TRAFFIC BETWEEN POLAND AND UKRAINE

The article aims at presenting the social and economic dimension of Schengen regulations, leaving aside its impact on cross-border co-operation. It outlines the legal framework of the Schengen acquis and its impact on Ukrainian-Polish relations in the examined fields. The tightening of these relations is important in view of Ukraine’s aim to form a free trade area with the EU and to join the EU at some future point.