Author(s):
1. Sead Omerčević, Federation of Bosnia and Herzegovina , Bosnia and Herzegovina

Abstract:
THE MOST COMMON SYMPTOMS AND CAUSES OF CRISES IN SMALL AND MIDDLE COMPANIES MSc Econ. Omerčević Sead Babilon Ltd. CEO Alekse Šantića 45, 75 000 Tuzla, Bosnia and Herzegovina Telephone: + 387 35 225 441 / 225 443 / 314 645 Mobile phone: + 38761 179 731 E-mail: seadomercevic@babilon.ba Summary What is typical for every crisis situation is that the symptoms which led to the crisis were rather strong but nobody noticed. Furthermore, to identify a crisis is pretty easy if there are clearly visible symptoms of it. However, it represents the basic problem, since the most of the symptoms, concerning crises, are related to various effects and factors. When the very course of a crisis in a company is taken into consideration, it can easily be concluded that collapse of a company at first begins very slowly (but very surely as well), and as the time goes by, all kinds of adversity that a company is faced with, only become more obvious and more difficult to handle at the same time. Within the scope of this work, the most important symptoms, causing crisis situations in small and middle companies, were selected and elaborated on. The work is also based on broad research of the author concerning a crisis and crisis situations. The primary objective of this work is to compare the theoretical attitudes and to prove them through practical research. It may well be said that the crucial symptoms or factors, which are of great importance for a company in the process of overcoming a crisis, are certainly brought about by internal elements, and that can be considered as a hypothesis of this work. What will also be checked through crisis’ causes are competence / incompetence of management when it comes to successful managing a company, but the significance of management in the process of avoiding or overcoming crisis situations will also be emphasized. What is of really great importance and what will be the main topic of this work, are phases, psychological reactions of employees in a company, to a crisis occurrence. Moreover, through both domestic and foreign literature, as well as through a lot of activities concerning the empirical research, this proves to be one of the most important segments which need to be considered when a crisis occurs in a company. Through this work, the chronological symptoms causing crisis situations will be introduced, and explanations for them will be provided appropriately. Also, the matching of the crucial symptoms was done, and the interdependency existing between them was pointed at, in other words, the “domino effect” between them. The objective of this paper is to seek the answer to the question: in which phase a company has a chance to react, or to get back on a path to recovery. One part of the work is focused on crisis management and its influence and function in a crisis-affected company. Key words: crisis symptoms, causes of a crisis, crisis, crisis situations, market share loss, liquidity.

Key words:
Key words: crisis symptoms, causes of a crisis, crisis, crisis situations, market share loss, liquidity.

Thematic field:
Measuring entrepreneurial activities

Date of abstract submission:
29.05.2012.

Number of visits:
443

Conference:
REDETE 2012