Enhancing efficiency of SMES in Latvia

Abstract

Efficient management and competitiveness of the company has become a decisive growth factor in ensuring sustainable development of SMEs. In order to identify the factors ensuring competitiveness, the authors have studied the factors characterizing and influencing the company's efficiency. As a result, the authors studied by means of a monographic or descriptive method the theoretical base for management efficiency, analysed the trends of the SME sector in Latvia and analysed the application of the principles of the theory of constraints to ensure the efficiency of Latvian SMEs. This research aims to provide companies an insight into the theoretical and real factors of the theory of constraints. As a result of the study, the authors conclude that by exploring the factors of the theory of constraints, companies can manage this process and maybe use it as one of the tools for ensuring competitiveness.