Effect of Economic Risk Sources on the Quality of the Business Environment in the SME Segment: A Case Study from the Slovak Republic

Abstract

The aim of the article is to define and quantify the impact of specific economic risk sources on the quality of the business environment (QBE). The subject of the analysis was the evaluation of the impact of selected economic risk sources, including the macroeconomic environment, monetary policy and interest rates, and corporate financing on the QBE. Data was collected between 2018 and 2022 using an online survey method. A total of 480 SMEs from the Slovak Republic’s business environment completed the questionnaire. Advanced statistical techniques, including descriptive statistics, correlation analysis, and linear regression analysis, were employed to evaluate the statistical hypotheses. The empirical results yielded several significant findings. All examined sources of the macroeconomic environment, such as the level of basic macroeconomic indicators, the state of the macroeconomic environment in the context of starting a business, and innovation activities of SMEs, determine the QBE. Other key factors that positively influence the quality of the business environment include: stabilization of the business environment by the central bank's monetary policy; the level of bank interest rates on the innovation activities of companies and availability of bank loans. The findings are significant not only for the SME segment itself and their owners and top managers but also for national-level institutions along with non-profit organizations assisting in improving the entire SME segment in the business environment.