Evaluating the business performance of an SME: a conceptual framework
by G.D. Sardana
International Journal of Globalisation and Small Business (IJGSB), Vol. 3, No. 2, 2009

Abstract: Performance measurement is fundamental to any management control. Performance evaluation, primarily helps in understanding weak areas, identifies gaps to carry out improvement and ensures that business activities are properly aligned with business objectives. A Small or Medium Enterprise (SME) has its own strengths and weaknesses, which need not be in common with those of a large organisation. Similarly, it has access to several opportunities and faces certain threats. Therefore, business performance imperatives in an SME are different from those applicable to a large organisation. The performance measurement model should reflect the same. This paper details the essentials of performance measures for an SME and examines how these differ from those for a large enterprise. The study brings out what determinants lead to success. Based on the objectives and determinants of success, the paper presents a business performance measurement framework, OPQR (for Organisational Design, Process Management, Quality Management and Recipient Satisfaction), and defines an appropriate set of performance measures for SMEs. The framework is nonprescriptive and recognises that there can be many approaches to achieve sustainable high levels of performance.

Online publication date: Mon, 26-Jan-2009

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Globalisation and Small Business (IJGSB):
Login with your Inderscience username and password:

    Username:        Password:         

Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com