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The measurement of SMEs performance: a simplified perspective

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  • Humberto Ramirez
  • Thien Sang Lim

Abstract

Performance is the quintessential dependent variable in empirical studies analysing the impact of different drivers on the final output of SMEs. Its adequate measurement is essential to avoid conflicting results and to ensure connection with the research context. Yet, there is a remarkable lack of consistency in the measurement of the variable, despite the vast presence of theoretical procedures and frameworks. This study aims at supplying a simplified perspective for measuring the performance of small companies. The integration of 111 empirical articles categorises performance measurement into two symmetric dimensions and identifies five simplified measures and combinations. These indicators constitute a simpler yet comprehensive view that can be used in future empirical research to measure SMEs performance. The proposed perspective advances the conceptual measurement of the performance of SMEs and provides recommendations for further research.

Suggested Citation

  • Humberto Ramirez & Thien Sang Lim, 2025. "The measurement of SMEs performance: a simplified perspective," International Journal of Business Performance Management, Inderscience Enterprises Ltd, vol. 26(6), pages 795-817.
    • Handle: RePEc:ids:ijbpma:v:26:y:2025:i:6:p:795-817
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