Innovative Approach to Business Education in SMEs in the Knowledge Economy of the 21st Century

Abstract

The contribution is interdisciplinary in nature. Aim of the contribution is to suggest some innovative concept for modern managers, which could prevent bankruptcy in the 21st century. Partial aims are following: identify 3 categories of financial risks, create schemes, according which could managers prevent these risks and finally create innovative method “Business Coin Concept” TM, which is suitable for business education during the business life cycle in the 21st century. To main financial risks belong: secondary inability to pay (insolvency) - SIP, fines and penalties by state authorities - FPSA and primary inability to pay – PIP. Then are identified tools to reduce these risks – e.g. SIP by financial analysis ex post and ex ante. In next step are identified information resources available to the manager to recognize financial risk and make an adequate decision – e.g. for SIP public and commercial database. The final output is the data evidence in the company information system. Data evidence is composed of 3 subsystems: financial, tax and managerial accounting. Authors also identify the main reasons for the manager to understand the content and connection of financial and managerial accounting when knowing the symptoms of the imminent bankruptcy of the company. The last step of the scheme is connection between 3 accounting subsystems. Main benefit of research is the creative educative method Business Coin Concept TM, which could we use not only by business education of entrepreneurs, but also by students of secondary schools. This suggestion will reduce the probability of financial loss of the company. Conclusion of article contains social and economic significance of suggested innovative approach, there are also some future extensions and limitations of research.