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Deepening the dialogue on SME business performance: Are there nonlinear effects as well?

Author

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  • Horvatinovic, Tin

    (Faculty of Economics & Business, University of Zagreb (CROATIA))

Abstract

Studies analyzing the business performance of small and medium-sized enterprises are high in number and importance. Throughout the years, a vast number of variables have been introduced to explain what causes the observed difference in the business performance of small and medium-sized enterprises. However, many previous studies looked at only linear effects of such variables, while neglecting potential non-linear aspects. This study tried to fill that gap in the literature by using both linear and quadratic effects of well-established variables in the literature. By using linear regression on a sample of 245 small and medium-sized enterprises, this study reports that entrepreneurial experience has a significant quadratic effect, while gender has a significant linear effect on business performance. Based on the employed methodology and results, limitations of this study and avenues for future research were outlined.

Suggested Citation

  • Horvatinovic, Tin, 2022. "Deepening the dialogue on SME business performance: Are there nonlinear effects as well?," Journal of Economic and Social Development, Clinical Journals Press, vol. 9(01), pages 01-09, March.
    • Handle: RePEc:ris:joeasd:0052
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    References listed on IDEAS

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    More about this item

    Keywords

    entrepreneurship; SME; business performance;
    All these keywords.

    JEL classification:

    • A11 - General Economics and Teaching - - General Economics - - - Role of Economics; Role of Economists

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