Managing risk in the formative years: Evidence from young enterprises in Europe
نویسندگان
چکیده
This paper empirically investigates aspects of risk management in young small enterprises' effort to survive and grow. We use a new dataset on several thousands small businesses in their “formative age” (2–8 years old) in 10 European countries and 18 sectors. Firms across all types of sectors use internal risk mitigation strategies to manage technology risk and operational risk. Financial risk is managed by tapping formal and informal networks. Market risk appears less amenable to internal management action. Formal network participation (strategic alliances) is a strategy cutting across all kinds of risk with the exception of operational risk. Firms in knowledge-intensive sectors (high-tech manufacturing and KIBS) engage in risk management activities more extensively. Firms led by more educated entrepreneurs and/or operating in demanding volatile markets tend to network more and to use internal risk mitigation strategies more extensively. & 2014 Elsevier Ltd. All rights reserved.
منابع مشابه
Cooperation in the Formative Years: Evidence from Young Enterprises in Europe
We empirically analyze factors that might affect the willingness of young small enterprises in several European countries to participate in collaborative agreements. These factors include the characteristics of the firm, of the entrepreneurs, and of the market environment the firm operates in. Within this age group – the “formative” years between 2 and 8 – firms are more likely to engage in col...
متن کاملبررسی انواع ریسک نوسانات نرخ ارز و شیو ه های مدیریت آن: مبانی نظری و مرور تجربیات کشورها
In the finance literature, the exchange rate fluctuations risk (ERFR) considered as one of the major systematically risks. Indeed uncertainty of Exchange rate fluctuations for each firm is deemed as the risk (uncertainty) that could affect on the firm's activities financial flows. So managing this risk is considered as one of the most important functions of financial managers of enterprises. Ac...
متن کاملDistance Management of SMEs Using ICT Solutions
The paper contains a description of a research conducted in collaboration with some Erasmus for Young Entrepreneurs program Romanian students, concerning the use and implementation of ICT (Information and Telecommunication Technology), especially in distance managing Small and Medium Enterprises (SMEs). The paper is a response to the nature of contemporary business management, with the constant...
متن کاملEnterprise-Wide Risk Management (EWRM) as a Value Added Tool in Enhancing the Economic Value of Business Enterprises
In recent years, Risk Management in respect of Enterprise-Wide Risk Management (EWRM) has become more important and highly critical to major corporations worldwide including Malaysia. In fact, it is interesting to note that when the Government of Malaysia passed the Code of Corporate Governance in the year 2000, most of the Public Limited Companies (PLCs) in Malaysia was struggling to implement...
متن کاملState-Owned Enterprises and Corporate Governance Strength: Evidence from Indonesia
Background: This study investigates whether state-owned enterprises (SOEs) in Indonesia implement stronger corporate governance than do non-SOEs. It can be argued that as a large dedicated institutional investor, the Indonesian government has an incentive to strengthen corporate governance in SOEs and possesses the ability to bear the cost of implementing stronger governance. Research Methods: ...
متن کامل