Productivity Measurement System for Small and Medium-sized Enterprises (SMEs) using Balanced Scorecard Approach

Productivity measurement is important in inculcating performance evaluation in Small and Medium-sized Enterprises (SMEs). Balanced Scorecard is undoubtedly one of the most widely recognized methods used in measuring productivity. When measuring productivity in SMEs, there is a lack of research in the usage of Balanced Scorecard approach. The objective of this project is to develop a productivity measurement system (PMS) for SMEs using Balanced Scorecard approach. This work presents a proposed application of Balanced Scorecard approach to a SME’s PMS. The proposed model can be used to measure the productivity level of a SME based on the four Balanced Scorecard perspectives. The scope of this work was the findings regarding PMS and various methods used in measuring productivity. The methodology used in developing PMS was the Prototyping Method. Through this project, it is found that SMEs and large organizations have the similar design in process steps for Balanced Scorecard approach. However, the key difference is the duration of the process involved. Thus, Balanced Scorecard can be successfully implemented in SMEs when it adapts to the characteristics in SMEs. As a result, PMS for SMEs using Balanced Scorecard approach was being developed in order to demonstrate the application of the proposed model

Problems and ways of business climate improving in the regions

The presence of the specific conditions and development factors of small and medium-sized enterprises (SMEs) in the regions of the country supposes the differentiated state policy in order to maintain a favorable business climate in the eld. The article presents the results of the research whose purpose was to determine the main issues and directions of the improvement of the business climate in the region, allowing to intensify the activities of local authorities in support of SMEs and considering the peculiarities of the territories development. The subject matter of this research is conditions and factors generating the business climate of the region. As a hypothesis, a direct connection between the prevailing regional business climate and the development of the quantitative indicators of active SMEs in the eld was assumed. The study used the method of comparative analysis, sociological methods of focus groups, survey research, and statistical methods of ranking and grouping. The article theoretically substantiates the correctness of the usage of the «business climate» category as an object of study in the framework of such project as «Implementation of «Business Climate» as an Independent Rating», which makes possible the argumentation of the used methodology and concretization of the factors affecting the functioning of small and medium-sized businesses in the regions. This research confirmed a direct correlation between the established business climate in regions and quantitative indicators of the development of active small and medium-sized enterprises in the eld. Such factors as “ financial resources” and “government support” limited the development of business increasingly. In conclusion, a set of measures is provided to improve the business climate in the region both at national and regional levels of government. In addition, it was concluded that to generate a favorable business environment in the regions of Kazakhstan, it is necessary to make a smooth transition from a policy of “identification and punishment of conscientious entrepreneurs” to a policy of “prevention of violations and promotion of good business.” The results of the research can be used in the work of the local executive authorities in order to improve business climate in the regions of country

Challenges and success factors for implementation of lean manufacturing in European SMES

Small and medium-sized enterprises are crucial to value creation in the European economy. The SMEs need continuous improvement initiatives to stay competitive. However, SMEs are less likely to implement lean practices compared to larger companies. Limited research exists on the factors that are vital for succeeding with Lean implementations in SMEs. A case study of Norwegian and Belgium SMEs has been conducted in the European research project ERIP (European Regions for Innovative Productivity). Six critical success factors are suggested, which correspond well with previous research: 1) Ensure strong management involvement. 2) Develop thorough employee participation. 3) Allocate sufficient time for preparing the organisation. 4) Focus on creating motivation to complete initiatives. 5) Build competence internally in the organisation. 6) Establish a performance evaluation system

Knowledge management as a key stone of sustainable welfare in the Italian rural areas

Sustainable well-being in the rural areas directly depends on their sustainable development. However, sustainable management in contemporary agriculture does not come easy for farmers due to different challenges and quality standards. To meet these challenges and to achieve sustainable development, the agricultural enterprises need an informational support. Therefore this article offers knowledge management as a tool for facilitating agricultural performance and enhancing quality of rural life.Practical application of knowledge management is quite complicated due to its intangible characteristics. Hence, the paper is targeted at developing sustainable organizational model of knowledge management affordable for small and medium enterprises. This model was created after content-analysis of the literature and was verified through an executed survey. The Italian agriculture was considered as a context for this study

Assessing sustainability support to small and medium sized enterprises (SMEs)

The aim of this paper is to evaluate qualitatively the impact of sustainability support to Small and Medium Sized Enterprises (SMEs) where quantitative results are often difficult to appraise. Many of these organisations require sustainable business support to enable them to start or build their business concepts on sound sustainable platforms. Many SMEs are unable to quantitatively evaluate the benefit which they have received from support programmes because they are in the project planning stage or have limited financial data. Without a form of evaluation, support networks often cannot retain funding support. This paper is based on the grounded theory approach to analyse qualitative data received from participants in a sustainability support programme. Research on such programmes to SMEs is scant. This paper proposes the use of qualitative data collection and its evaluation to be considered when making the case for funding such programmes, along with quantitative data when availabl

Internationalisation, cultural distance and country characteristics: a Bayesian analysis of SME's financial performance

Relying on the accounting data of a panel of 403 Italian manufacturing SMEs collected over a period of 5 years, we find results suggesting that multinationality per se does not impact on the economic performance of international small and medium sized firms. It is the characteristics of the country selected i.e. the political hazard, the financial stability and the economic performance that significantly influence SMEs financial performance. The management implication for small and medium sized firms selecting and entering new geographic markets is significant, since our results show that for SMEs it is the market selection process that really matters and not the degree of multinationality

Why small and medium construction enterprises do not employ six sigma

Six sigma (6σ) is a powerful business strategy which is aimed at increasing customer satisfaction and profitability by improving the quality of products and services. Many organisations have implemented 6σ and achieved significant levels of success. Successful implementation of 6σ leads to outcomes that would be welcome in the construction industry, given its reputation of suboptimal performance. The construction industry relies heavily on small and medium enterprises (SMEs). Any improvement in construction SMEs would lead to improvements in the construction industry as a whole. Against this background, a survey was undertaken to establish whether construction SMEs used 6σ and to identify factors affecting the adoption of this business strategy. It was found that none of the SMEs in the sample used 6σ. The reasons given for not employing 6σ, in descending order of importance, were: lack of knowledge about 6σ programme; lack of resources (human, time, money); 6σ programme not required by customers; other sufficient quality system in use; 6σ provides no perceived benefits; and end users not prepared to pay for 6σ programme. These reasons can be challenged when a critical analysis of innovation in the external environment within which construction SMEs operate, trends in the mode of delivery of construction industry products, trends in performance measurement in the construction industry and the flexibility of 6σ as a quantitative approach to managing quality. Construction industry stakeholders need to think about 6σ critically and make informed decisions about its role in the construction industry quality management agenda

Development of Small and Medium-Sized Regional Enterprises: Creation of Priority Areas (the Case of Sverdlovsk Region)

This article presents the results of the research which deals with the current level of development of small and medium enterprises (SMEs) in Sverdlovsk region. The study analyses the statistics of entrepreneurship development as well as Russian and international experience in this sphere. It also includes a sociological survey of entrepreneurs’ satisfaction with the business climate in the region. The research was aimed at elaborating guidelines for the long-term development of a regional entrepreneurship support system. This system seeks to facilitate the implementation of the ‘Strategy for the Development of Small and Medium Enterprises in Sverdlovsk Region before 2030’. As a result, an amalgam of strategic responses for the development of SMEs is presented. The completed response comprises measures intended to address the problems entrepreneurs face by developing SME support tools; to solve the endemic problems of the sector by improving the system of regional SME support; and to promote the realization of concrete priority areas for entrepreneurship development.The research work was carried out in collaboration with the Ural Federal University n.a. the First President of Russia B. N. Yeltsin and OOO “Analytical Centre Expert-Ural’” at the request of Sverdlovsk Regional Entrepreneurship Support Fund. The research was conducted in the period of September-November 2014. The state programme of Sverdlovsk region ‘Development of Industry and Science in Sverdlovsk Region Before 2020’ (approved by the Order of Sverdlovsk government of 24 October 2013 № 1293-ПП)