What are the methodological differences in the processes of examining economic effectiveness or specific selected issues, aspects in the scope of analyzing the effectiveness of a given business activity in a situation of comparison of analyzes carried out for small enterprises and large business entities conducting diversified economic activities?
For small business entities representing the SME sector, those operating in one area of economic activity, the simplest solution is to select economic and financial indicators relevant to the needs, which determine specific issues of efficiency, eg fixed assets, current assets or other classified capital categories, production factors. It is also possible to analyze and measure the effectiveness of specific processes in an enterprise, the effectiveness of measures, specific investment projects, efficiency of logistics processes, work efficiency of employees, etc. For each of the mentioned types of effectiveness tests other economic or financial indicators are used.
However, in the situation of the analysis of complex, multi-factorial processes realized with economic entities, multifaceted processes covering various spheres of activity of a specific enterprise, covering the entirety of a large enterprise operating in various business areas and with the involvement of much larger financial resources for conducted economic efficiency analyzes, then they should Complex indicator models built from many interrelated economic, financial and other indicators can be used.
A good solution in this situation is the involvement of Business Intelligence technology using large data sets describing the functioning of a specific large enterprise, gathered in Big Data database systems. In addition, advanced data processing and analysis can be made using cloud computing technology. In addition, access to data, data update and commissioning of specific analyzes of economic performance research can be carried out from the level of mobile devices, i.e. through the use of the Internet of Things technology.
Do you agree with me on the above matter?
In the context of the above issues, I am asking you the following question:
What are the methodological differences in the processes of examining economic effectiveness or specific selected issues, aspects in the scope of analyzing the effectiveness of a given business activity in a situation of comparison of analyzes carried out for small enterprises and large business entities conducting diversified economic activities?
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Efficiency indicators and the factors acting on it are the same in small and large businesses. Efficiency is important for both types of enterprises. But their scale differs. However, the financial crisis of the big company is more dangerous than the collapse of the small enterprise for the community.
Your question uses the term efficiency. In my view, the answer depends substantially on which resources the term "efficiency" refers to (e.g. energy, material and personnel efficiency). Personnel efficiency is usually measured in terms of labour productivity. While labour costs have been the main drivers for efficient staff deployment up to now, the consequences of the shortage of skilled workers, lack of deployment flexibility and the effects of demographic change are currently the main drivers. With regard to these factors, it can be assumed that SMEs will have to act differently from large diversified enterprises. In this respect, personnel efficiency will also have to be analysed and evaluated methodically differently. In this way I support your fundamental thesis that there are methodological differences. What these differences look like must be discussed in relation to the resource under consideration.
Hi,
It is purely based on business environment. the economic efficiency focused in business planning, operations, and the evaluation of its activities and in market area,share, product performance, and overall quality trends to small and large scale business ...
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