Bankruptcy risk is always a constant threat to the SMEs, which determines how long the firms will survive. Since itsidentification, management, and control vested in the hands of the entrepreneurs and managers. A lot depends ontheir interpretations and beliefs. Therefore, to investigate this phenomenon, the present study aimed to investigate the attitudeof the managers and entrepreneurs towards bankruptcy risk and to draw the conclusion on how the entrepreneurs’ attitudediffers among the Czech Republic and Slovak republic entrepreneurs as well. The study was conducted among 822 small andmedium-sized companies from the Czech Republic and Slovakia. Chi-square and z-score test methods were used to test forthe existence of a statistically significant difference between bankruptcy attitudes among Czech and Slovak entrepreneurs.Slovak entrepreneurs are more likely to regard bankruptcy as a natural part of the business, and they are less likely to identifyan entrepreneur’s mistake as the cause of bankruptcy. An important conclusion is that the experience of bankruptcy forentrepreneurs of both countries is assessed as a vital experience gained, which, however, negatively affects the self-esteem ofan entrepreneur. This study contributes to the literature by offering insights over the attitude of SMEs’ owners andentrepreneurs about bankruptcy risk in the context of the Czech Republic and the Slovak republic. From the policymakers’viewpoint, it is imperative to understand the attitude of SMEs’ owners and entrepreneurs to design effective policies aimingto improve entrepreneurs with adequate skills, ability, and state support. The Originality of the paper deals with theentrepreneur’s perception, behaviour, and attitude towards bankruptcy risk in SMEs.
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