Sectoral view on financial management of SMEs. Empirical research in V4 countries

Research background: The importance of small and medium enterprises to the development of economic condition of developed and developing countries are so vital, yet SMEs are extremely vulnerable to default due economic and competitive pressure from the large firm. Purpose of the article: The aim of paper was to define important factors of financial management of SMEs and compare answers of respondent in three the most important sectors in V4 countries. Methods: The empirical research was conducted in June 2022 in the V4 countries. Data collection was carried out by the external agency MNFORCE using the "Computer Assisted Web Interviewing" (CAWI Research Method). The total number of respondents in the sample was 995. The statistical hypothesis was tested through descriptive statistics and Z-score at α = 5% significance level. Findings & Value added: The results of the empirical research confirmed that SMEs in the V4 countries within the sample set of the top three sectors have a relatively positive attitude towards selected aspects of financial management. SMEs in each country presented an understanding of the basic attributes of financial management, a correct perception of financial risk and also the ability to manage financial risks appropriately. At the same time, these firms were relatively positive about the current financial performance of their firms and showed a considerable amount of business optimism. The best results were found in Hungary, followed by Poland, Slovakia and the Czech Republic in last place. Statistically significant differences in firms' attitudes within the most important SME business sectors were found only in Poland. The manufacturing sector was significantly more likely to agree with the statement that SMEs understand the most important aspects of financial management compared to the tourism and trade sector.