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eKonferencije.com: Performance Management in Micro and Small Entreprises

Performance Management in Micro and Small Entreprises

1. Vladimir Skoric, Serbia
2. Tina Topalovic, Serbian Engineering and Operations Management Association, Serbia
3. Janko Jakovljevic, Serbian Engineering and Operations Management Association, Serbia
4. Aleksandar Jankulovic, Metropolitan University, Serbia

According to the report on implementation of the European Commission, it is stated that in the years 2010 and 2011 there were up to 20.8 million of small and medium enterprises in the EU, 19.2 million of which were micro-firms with less than 10 employees. Despite the slight decrease in the number of SMEs, European Commission has concluded that in the years 2010 and 2011 “small and medium enterprises (SMEs) with their turnover have retained their position of "spine" of the European economy". In the Republic of Serbia, in comparison to the EU, percentage stake of small and medium enterprises in the total number of enterprises is larger and according to the figures from National Agency for Regional Development of the Republic of Serbia, in the year 2010 quantified 99.8% of the total number of enterprises. In the year 2011, number of newly established SMEs was reduced in comparison to the year 2010 and the number of closed SMEs increased, while employment rate declined by additional 3.5 percent. Technical and technological lag and lack of competitiveness of Serbian economy are still defined as key limiting factors for more efficient involvement in international trends. In the Republic of Srpska, during the same reporting period, small and medium enterprises and craft shops accounted for 99.6% of the total number of firms, and around 80.15% of total operating revenues. The aim of this paper is to explore ways how to manage the performances within the SMEs sector by focusing on micro and small enterprises and to determine the coherence of performance management with the implementation of the system of quality management. Apart from that, this study also aims at exploring the possibility for application of financial and non-financial parameters within the Balanced Scorecard technique for managing the performances in the enterprises surveyed, and all that in order to increase the competitiveness of a firm and thus competitiveness of the region as well. For the purpose of achieving previously mentioned objective, research has been conducted in the Republic of Serbia and in the entity of Bosnia and Herzegovina, Republic of Srpska. The study was carried out in three cities: Banja Luka, Kragujevac and Belgrade. The process of data collection was executed by surveying the owners or top management representatives of the companies, while the analysis was realized by using standard statistical tools and SPSS software. This paper contributes to the better understanding of managing micro and small enterprises and indicates the impact of standardization on the process of managing and decision-making process. On top of that, this work also stands for raising the awareness regarding the usefulness of the application of methods and techniques of performance management in running micro and small enterprises.

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Datum: 19.11.2013.

REDETE 2014 - Researching Economic Development and Entrepreneurship in Transition Economies

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