FACTORS DETERMINING PROFITABILITY OF SMALL AND MEDIUM ENTERPRISES IN SELECTED INDUSTRY OF MECHANICAL ENGINEERING IN THE SLOVAK REPUBLIC – THE EMPIRICAL STUDY


Ekonomika a management

FACTORS DETERMINING PROFITABILITY OF SMALL AND MEDIUM ENTERPRISES IN SELECTED INDUSTRY OF MECHANICAL ENGINEERING IN THE SLOVAK REPUBLIC – THE EMPIRICAL STUDY

Mechanical engineering belongs to the key industries in Slovakia. In terms of achieved sales and the rate of employment, it ranks among the largest manufacturing industries. The industry currently employs 12 per cent of the population and accounts for up to 42 per cent of total output of the Slovak Republic. Many of the enterprises operating in this industry are small or mediumsized. This industry apparently plays an essential role in the global economy, it is a source of entrepreneurship, innovations and new jobs. These are some of the reasons for which SMEs´ profitability and ways of its improvement should draw particular attention. It is therefore obvious that the issues of the financial analysis in SMEs are receiving constant attention. Since SMEs are the backbone of the Slovak economy and mechanical engineering is one of its key industries, our intention in this article is to focus attention on profitability and factors influencing it in SMEs active in the mechanical engineering industry.
Jméno a příjmení autora:

Ľubica Lesáková, Andrea Ondrušová, Miroslava Vinczeová

Rok:
2019
Ročník:
22
Číslo:
2
Klíčová slova:
Profitability analysis, factors determining profitability, machinery industry, small and medium enterprises, Slovak Republic
DOI (& full text):
Anotace:
The profitability analysis revealing factors influencing profitability becomes a very helpful tool providing guidelines for managers in their short-term as well as strategic decision-making process.…více
The profitability analysis revealing factors influencing profitability becomes a very helpful tool providing guidelines for managers in their short-term as well as strategic decision-making process. To take right decisions, managers need to analyse their financial situation, especially in respect to firm´s profitability and the factors influencing it. Mechanical engineering industry belongs to key industries in Slovakia. It apparently plays an essential role in the global economy, it is a source of entrepreneurship, innovations and new jobs. Many of enterprises operating in this industry are small or medium-sized. These are some of the reasons for which SMEs´ profitability and ways of its improvement should draw particular attention. The paper presents results of research carried out in the selected industry of mechanical engineering of SMEs in Slovakia (SK NACE rev. 2 28xxx – Manufacture of machinery and equipment not elsewhere classified). The aim of the research is to analyse and evaluate the development of profitability in this industry during the period 2008-2015 and to identify key external and internal factors influencing profitability of SMEs over that period. In order to determine the influence of basic indicators, the DuPont pyramidal analysis was performed. Data obtained by means of the questionnaire survey enabled to identify the factors affecting profitability whose influence is impossible to calculate. The Friedman and Wilcoxon tests were used to evaluate the answers in questionnaires. Results are connected with the evaluation of three hypotheses defined in regard of the established goal of the paper.
Sekce:
Ekonomika a management

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