Development of an Improved Methodology for Assessing the Performance of Small Business Entities

This article develops an improved methodology for assessing the performance of small business entities. The proposed approach goes beyond the separate recording of final financial results and provides for the assessment, within a unified calculation framework, of value creation intensity, production capacity utilization, the effect of the cost structure on value, asset-use efficiency, stability and growth potential, the degree of coverage of value losses, and value created through labor. The methodology is based on a six-stage mechanism comprising the formation of indicators, their normalization to a 0-1 range, weighting, calculation of partial indices, determination of the 0-100-point IKB integral score, and transformation of the result into a management decision. A five-level authorial identification scale is proposed for the economic interpretation of the final results.