Measuring efficiency by using selected determinants in regional SMEs

• Published in: Entrepreneurship and Sustainability Issues Vol. 8; no. 3; pp. 487 - 503
• Main Authors: Mura, Ladislav, Hajduová, Zuzana
• Format: Journal Article
• Language: English
• Published: Vilnius Entrepreneurship and Sustainability Center 01.03.2021
• Subjects: Efficiency; Small & medium sized enterprises-SME; Slovakia
• ISSN: 2345-0282; 2345-0282
• DOI: 10.9770/jesi.2021.8.3(31)

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.