Financial management in the context of sustainable development in Polish and Czech manufacturing SMEs

Research background: The manufacturing sector is one of the most significant business sectors. It contributes significantly to the improvement and sustainable growth of the business environment. Manufacturing enterprises in the small and medium-sized enterprises (SME) segment are primarily determined by the financial performance of business activities in the context of sustainable development. Purpose of the article: The article aims to evaluate the impact of financial management on the sustainability of manufacturing SMEs in the business environments of Poland and the Czech Republic. Methods: The questionnaire was collected in the calendar year 2023 in Poland and the Czech Republic. The respondents were defined as owners or a top managers. The research sample included responses from 251 manufacturing SMEs. The hypotheses of the quantitative research were evaluated using linear regression modeling. IBM SPSS Statistics software was used to assess the hypotheses. Findings & Value added: The results from the attitudes of Czech and Polish respondents indicate that the most significant factor is sufficient profit in the context of understanding the concept of sustainable growth for manufacturing SMEs in the business environment. A common characteristic of both countries is the attitude that if a manufacturing SME has no problem meeting its pay obligations, it is perceived as sustainable. Respondents from Polish manufacturing SMEs believe that sufficient profit has a positive impact on the perception of the social and environmental effects of business. The empirical findings are significant for policymakers in supporting business, in the context of a better understanding the concept of sustainable development in the manufacturing SME segment.