The use of bankruptcy models in the context of assessing the macroeconomic business environment

Research background: Predicting economic crises and assessing macroeconomic stability are among the most important challenges of the contemporary economy. Bankruptcy models, originally developed to assess the financial health of businesses, are increasingly being used for macroeconomic analysis Purpose of the article: The aim of this paper is to analyse the impact of selected economic and institutional factors on the stability and efficiency of the business environment through discriminant analysis. Methods: The model includes factors such as average quality of education, amount of R&D spending, education spending, financing of the judiciary, duration of litigation, market risk, number of venture capital investors, and government debt to GDP. Findings & Value added: The results show that high education and judiciary spending, along with a higher number of venture capital investors, contribute significantly to the positive results of the model, indicating the need to support these areas to improve economic performance. Conversely, high R&D expenditures and lengthy judicial processes emerged as factors negatively impacting the efficiency of the business environment. The presence of venture capital has proved crucial for market dynamism and growth, while government debt has had only a minimal impact. The findings provide valuable information for policy makers and investors on optimising public spending and promoting key factors that have the potential to improve economic competitiveness and the stability of the business environment.