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A "DEA" Based Taxonomy to Map Successful SMEs

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Executive Summary

The study investigates the dimensions and characteristics that effect SMEs performance. SME's productivity can be measured using the ratio of its outputs and inputs. The study utilizes the Data Envelopment Analysis (DEA) methodology to derive a novel taxonomy for mapping successful SMEs. The paper presents the results of business performance measurements of 248 SMEs. The taxonomy reveals that owners of efficient SME's concentrated on cost reduction activities. Efficient SMEs owners did not invest in marketing activities. The authors found that the least efficient SMEs invested in advertising and marketing activities more than the others.

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