QUANTITATIVE FINANCIAL ANALYSIS OF SMALL AND MEDIUM FOOD ENTERPRISES IN A DEVELOPING COUNTRY

• Published in: Transformations in Business & Economics Vol. 14; no. 1; pp. 212 - 224
• Main Authors: Murav, Ladislav, Buleca, Jan, Marek Andrejkovic, Zuzana Hajduova
• Format: Journal Article
• Language: English
• Published: Kaunas Vilnius University, Kaunas Faculty of Humanities 01.01.2015
• Subjects: Business; Developing countries; Enterprises; Financial analysis; Financial performance; Food; Food industry; LDCs; Quantitative analysis; Small & medium sized enterprises-SME; Small and medium sized enterprises; Sri Lanka; Strategic management; Studies; Sri Lanka
• ISSN: 1648-4460; 2538-872X

The submitted article presents the financial analysis of SMEs in developing country by using quantitative methods. The focus of this analysis was the relationship between the distinctive capabilities and performance of food SMEs in a developing country with an emphasis on the businesses considering strategic management concept. The research sample for the financial analysis contained eighty-two small and medium manufacturing enterprises in total. The examination of the relationship between two variables, five distinctive capabilities (finance, marketing, administration, production, and human resources) as well as three financial performance indicators was used for the quantitative analysis. Implementation of quantitative financial analysis proved the existence of correlation, which demonstrated a significant relationship between the surveyed distinctive capabilities, on the one hand, and the performance of Sri Lanka's food SMEs, on the other hand. The authors of this article recommend for the relevant institutions to pay attention to the development of the distinctive capabilities of food SMEs in Sri Lanka, as this may lead to the overall development of business in the food industry in this developing country.