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Measuring efficiency by using selected determinants in regional SMEs

Author

Listed:
  • Ladislav Mura

    (Pan-European University, Slovakia)

  • Zuzana Hajduová

    (University of Economics in Bratislava, Slovakia)

Abstract

In comparison to other EU countries, Slovakia is characterized by increased business activity and the highest representation of micro-enterprises in the business sector. In the years 2017/2018 -, up to 75% of companies in the SME segment conducted business activity in the field of industry, accommodation, trade, transport and construction. The collected data clearly indicates a growing trend in providing accommodation services, business and information services, business and brokerage services. The main objective of the study is to assess the sectorial structure of SMEs and managerial determinants of their efficiency. The research sample of the enterprises has shown that even these methods can better warn against bankruptcy by predicting whether business will or will not be sustainable. In comparison to EU-28, Slovakia has a significantly higher representation of industry and civil engineering in the sectoral structure of SMEs, while the service sector is under-represented. We conducted a research focusing on our defined area of business in the SME segment. The evaluation of efficiency is most often performed by ratios, which are based on current financial statements of companies. The disadvantage of these measurements is the focus on a certain quantified range of parameters that do not significantly affect the overall efficiency of the unit. Based on the DEA methodology, a selected segment of services in individual regions of Slovakia was analysed in details. The SME sector in individual regions of Slovakia is showing differences. This work presents the results of the clearly defined efficiency of business entities. The main part of this work is about the exact determination of factors that need to be changed in order the specified entity shows signs of efficient management.

Suggested Citation

  • Ladislav Mura & Zuzana Hajduová, 2021. "Measuring efficiency by using selected determinants in regional SMEs," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 8(3), pages 487-503, March.
    • Handle: RePEc:ssi:jouesi:v:8:y:2021:i:3:p:487-503
    DOI: 10.9770/jesi.2021.8.3(31)
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    2. Zi Mu & Yifei Li & Hadi Hussain, 2024. "Sustainability Beyond Profits: Assessing the Impact of Corporate Social Responsibility on Strategic Business Performance in Hospitality Small and Medium Enterprises," Sustainability, MDPI, vol. 16(23), pages 1-22, November.
    3. Stavros Kalogiannidis & Efstratios Loizou & Dimitrios Kalfas & Fotios Chatzitheodoridis, 2022. "Local and Regional Management Approaches for the Redesign of Local Development: A Case Study of Greece," Administrative Sciences, MDPI, vol. 12(2), pages 1-17, June.
    4. Novotná, Martina & Volek, Tomáš, 2023. "Efficiency of Use Fixed Assets in the Context of Profitability – Empirical Evidence of Food Industry Enterprises in Visegrad Group," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 15(4), December.
    5. Boris Rumanko & Jana Kozáková & Mária Urbánová & Monika Hudáková, 2021. "Family Business as a Bearer of Social Sustainability in Multinationals-Case of Slovakia," Sustainability, MDPI, vol. 13(14), pages 1-25, July.
    6. Ján Dobrovič & Veronika Čabinová & Peter Gallo & Petra Partlová & Jan Váchal & Beáta Balogová & Jozef Orgonáš, 2021. "Application of the DEA Model in Tourism SMEs: An Empirical Study from Slovakia in the Context of Business Sustainability," Sustainability, MDPI, vol. 13(13), pages 1-19, July.
    7. Michal Hrivnák & Peter Moritz & Marcela Chreneková, 2021. "What Kept the Boat Afloat? Sustainability of Employment in Knowledge-Intensive Sectors Due to Government Measures during COVID-19 Pandemic," Sustainability, MDPI, vol. 13(15), pages 1-21, July.
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    More about this item

    Keywords

    small and medium enterprises; regions; DEA; models; correlation;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C44 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Operations Research; Statistical Decision Theory
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm

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