The aspects of managing risks in connection with the internationalization of SMEs from selected Central European countries

Abstract

Insufficient domestic demand and increasing competition force small and medium-sized enterprises (SMEs) to engage in internationalization process and enter to foreign markets. This process, however, carries risks that should be appropriate managed. In order to identify similarities and differences in the approach of SMEs from selected Central European countries towards managing these risks and find out whether perception of risks differ based on domestic country of the SMEs, questionnaire survey among Czech, Slovak, German, Austrian and Poland SMEs was performed in 2014. It was found that more Austrian and German SMEs, compared to Czech, Slovak and Polish SMEs, do not apply any method of risk analysis but are more focused on some form of protection in international operations. As the most common form was identified payment in advance. It was also found that Austrian and German SMEs prefer to use bank products rather that conclude long-term contracts or verify the credibility of their foreign business partners used by Czech, Slovak and Poland SMEs. Based on statistical testing, significant differences appeared in risk perception of SMEs from different countries. Especially perception of market risks, transportation risks and risk of natural disasters.