J 2022

What Situations Cause Crucial Financial Decisions within Social Businesses?

DUHÁČEK ŠEBESTOVÁ, Jarmila, Petra KREJČÍ and Žaneta RYLKOVÁ

Basic information

Original name

What Situations Cause Crucial Financial Decisions within Social Businesses?

Authors

DUHÁČEK ŠEBESTOVÁ, Jarmila (203 Czech Republic, belonging to the institution), Petra KREJČÍ (203 Czech Republic) and Žaneta RYLKOVÁ

Edition

CENTRAL EUROPEAN BUSINESS REVIEW, 2022, 1805-4862

Other information

Language

English

Type of outcome

Článek v odborném periodiku

Field of Study

50206 Finance

Country of publisher

Czech Republic

Confidentiality degree

není předmětem státního či obchodního tajemství

References:

URL

Organization unit

Moravian Business College Olomouc

DOI

http://dx.doi.org/10.18267/j.cebr.294

UT WoS

000829070700003

Keywords in English

financial decision; investments; profit; social business

Tags

RIV2023
Změněno: 5/1/2023 11:13, Ing. Michaela Nováková

Abstract

V originále

The growing uncertainty in today’s business environment has a significant influence on social business’s behaviour. Those enterprises could rely on public support in the past, but nowadays, they have to find a way to be more responsible about their social activity and be financially independent on public resources. Based on this theoretical background, the paper’s main goal was to find a set of factors that influence crucial financial decisions within a crisis. When social businesses create an optimal financial portfolio to be financially sustainable, primary research was conducted. A sample of 57 social businesses was asked about their financial strategy. The main research goal was to compare a change before and after the first wave of the Covid-19 pandemic situation in 2020. This case has shown current financial thinking and preparedness for unusual or crises. A mixed research approach was chosen due to a limited number of respondents. The overall results found that those businesses prefer to use the current strategy (42%) in crisis, and they limit investments to survive in that situation, except marketing investments (16%). Implications for Central European audience: At the theoretical level, our study shows social enterprise concepts in the Central European context, which differs somewhat from the already established definition of mainly Anglo-Saxon and American authors. At the same time, it combines knowledge about the use of financial planning in this segment. The study results show that financial planning is essential in these companies because it can achieve social goals. A discussion would be opened on how to raise awareness of the preparation of the strategy. Alternatively, how to strengthen the financial literacy of managers or representatives of these entities.
Displayed: 31/10/2024 20:14