RISK IN SMALL BUSINESS ACTIVITY

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RISK IN SMALL BUSINESS ACTIVITY

Journal Title: Scientific Journal of the Military University of Land Forces - Year 2014, Vol 172, Issue 2

Abstract

Economic activity of each company, like any human activity, is associated with risk and un-certainty. The risk always entails certain consequences, but they are seen most often in the context of negative events, such as loss, lack, lateness, unsuccessful contract or less profit.Risk management and its prevention is of strategic importance to any business, espe-cially for a small one, which, due to limited capital cannot afford too much losses associated with the occurrence of adverse events. The objective of risk management is in this case the earliest possible detection of areas in wealth, finance, supply and income. The detection of risk allows the use of existing potentials in the company and to seek and build new ones.While discussing the issue of risk in small business it is important to have in mind the specificity of its operation. Small businesses are in the majority of cases natural persons, and as such, are dominated by the personality of the owner and their individual approach to risk management. It should be noted that most of these companies have little formal organizational structure, and their economic activity is based on informal contacts with employees and con-tractors.

Authors and Affiliations

Mirosław STRUŚ, Emilia KONOPSKA-STRUŚ

Keywords

EP ID EP61675
DOI -
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