Statistical analysis of performance in SMEs

Abstract

Market economy is mainly characterized by private property. For entrepreneurs, private property allows action according to market realities, opportunities and strategies aimed to succeed. There is no doubt that all small and medium enterprise (SME) achievements are closely linked to profitability, as SMEs constitute a development engine that fuel country GDP. We examine the profitability implications of providing finance to 1233 Romanian SMEs during 2004-2008 based on financial structure ratios. In addition, we analyse the correlation between various return rates. We establish a correlation between performance and equilibrium of Romanian SMEs in five economic sectors: pharmaceutical, furniture manufacturers, leather garment, software and textiles.