Future Studies Research Journal: Trends and Strategies (Dec 2013)

MCDA-C Methodology Based Performance Evaluation of Small and Medium-Sized Businesses at the City of Lages

  • Marcelo Nascimento,
  • Fabricio Haubert,
  • Fernando Filardi,
  • Marcus Vinicius Andrade de Lima

DOI
https://doi.org/10.7444/fsrj.v5i2.102
Journal volume & issue
Vol. 5, no. 2
pp. 79 – 112

Abstract

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When employed in a focused manner, corporate performance evaluation has proven to be instrumental for entrepreneurs as an important tool that contributes with performance improvements at their organizations. The descriptive study herein, prepared as of a questionnaire comprising 46 queries, poses to analyse the performance of micro and small companies (MSEs) by employing the multicriteria methodology for constructive decision aiding (MCDA-C). As of respondent replies, MCDA-C descriptors were formed, shaping six prime groups so as to identify relevant factors that drive or hinder MSE success. The questionnaire was applied to managers in charge administering 25 small and medium-sized companies of Lages, a city within the Brazilian state of Santa Catarina. Study findings provide evidence as to the fact that (i) 24% of surveyed companies, tend to go bankrupt; (ii) managerial functions at the MSEs are the prime source of influence on negative outcomes; (iii) from a financial control standpoint, surveyed companies fall far shorter than the minimum level deemed necessary to qualify as satisfactory; (iv) those that present the best results, operate both within the domestic and international markets; (v) the study placed under the spotlight the group “Evolution Stage”, evidencing the trend of ever increasing MSE expansion. This study revealed that corporate failure contributing factors are intensely interconnected and largely depend on the entrepreneur´s own performance, the prime contribution of findings residing in demonstrating that MCDA-C can be employed to analyse the performance of micro and small businesses.