Hybrid ConvLSTM Model for Evaluating the Performance of SMEs in The Software Sector

Abstract

SME is a term used for businesses based on the number of employees, size, and turnover. SMEs form the basis of the economy and are indispensable organizations of business life worldwide. In this study, the ConvLSTM model was created to evaluate the financial performance of SMEs operating in the software sector in Turkey. The motivation of the study is to analyze the performance of SMEs operating in the software sector in Turkey. The study used data from the Small and Medium Enterprises Development of Türkiye for 2018-2022. ConvLSTM was compared with LR, LSTM, SVM, CNN, RF, and MLP. Experiments showed that ConvLSTM outperformed other models, performing above 0.8 R2 for all parameters.