Application of the MARS Method to the Evaluation of Grant Applications and Non-Returnable Instruments of Start-Up Business Financing

Abstract

This paper discusses the issue of evaluation of grant and loan proposals submitted by start-up businesses. A multi-criteria model for the evaluation of proposals for start-up business financing is proposed, based on the MARS method and taking into account three criteria: professional experience of the person planning to start a business, evaluation of the business plan, and evaluation of credit history of the applicant. Modelling of the expert's preferences was based on verbal comparisons of decision variants from the reference set consisting of solutions close to the ideal solution. The usefulness of the model has been verified using data from loan applications submitted to the Business Friendly Fund, operating in one of cooperative banks in the Podlaskie voivodeship.

The application of saw method to support the decisions concerning start-up financing

“…In the issues of this type there may be applied methods of multi-criteria decision-making, the methods using the concept of a fuzzy set and fuzzy conclusion. In the previous research concerning the analyzed problem there were used, among others, the methods based on the paradigm of disaggregation of the decision-maker's preferences: MARS method and UTA method [Konopka, Roszkowska, 2015;Roszkowska, Konopka, 2016] and WINGS method (Weighted Influence Non-linear Gauge System) [Michnik, 2016]. In order to construct the presented model the SAW method has been used (Simple Additive Weihiting Method) -it was presented in the next chapter of the paper.…”