Determinants of the growth of Small and Medium Enterprises

Abstract

SMEs (Small and Medium Enterprises) play a vital role in the economic and social life of the country. Existing studies mostly use proxy performance indicators and relatively general determinants of the performance of SMEs. The goal of the research is to contribute to the deepening and expansion of knowledge about the determinants of performance and growth of SMEs, while the growth and performance of SMEs are expressed by monetary indicators of actual performance, and the determinants of performance are ascertained in specific enterprises based on personal observation of the researcher. The research was conducted on a sample of 146 SMEs. Descriptive statistics, correlation and regression analysis were used to analyze the research sample. The results of the research are the positive determinants, which are the ambitions of the founder, the number of employees, the excellence of the product, the diversity of the level of education and work experience of the employees, the level of education of the employees and the managerial experience of the founder. Negative determinants are the company's age, proof of product excellence, and explicit formulation of financial goals. The originality of the research lies in the use of audited performance indicators of specific SMEs, which are influenced by the determinants identified in these SMEs' field research. Determinants are divided into positive and negative, including the intensity of their influence, further into long-term and short-term, and according to the range of influence on various performance indicators.