An Overview of Performance Measurement Methods in SMEs

Abstract

Enterprises search for competitive advantages that leads them to improve their performance. The importance of performance measurement has gained increasing recognition in recent years. Companies have realized the need to effectively measure and monitor the enterprise’s performance. Small and medium-sized enterprises (SMEs) have become increasingly important in national and international markets because they contribute to the development of local and national economies. SMEs often face serious challenges when competing with multinational companies. Large corporations have the financial, human capital and expertise to procure and implement complex performance measurement systems and ensure their relevance to the company’s shortand long-term goals, Inclusive and effective performance measurement systems are essential for gaining competitive advantage and continuously adapting to the dynamic environment in which SMEs operate. Aim of this paper is to give an overview of the performance measurement methods in SMEs. Based on current research project of authors, it is necessary to recommend a methodology for performance measurement, depending on the research requirements.