Performance measurement in SMEs

Authored by: Robin Jarvis

The Routledge Companion to Performance Management and Control

Print publication date:  August  2017
Online publication date:  August  2017

Print ISBN: 9781138913547
eBook ISBN: 9781315691374
Adobe ISBN:

10.4324/9781315691374.ch20

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Abstract

The aim of this chapter is to examine through the literature the application of performance measurement in Small and Medium Size Entities (SMEs). However, when addressing issues relating to SMEs, it is necessary to consider the important question of the definition of a SME. Conveniently, the European Commission (EC) has defined SME. The EC has needed to adopt a uniform definition across Europe for the consistent application of regulation throughout European Union’s internal market. Helpfully, most research literature and policy within Europe, in need of a common definition, also use the EC definition. This consistency in the context of the SME research agenda is important so that we can compare and develop a robust literature. The EC definition includes three metrics which will be described later in the chapter 1 in the context of our study of SMEs and Performance Measurement Systems.

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