Original scientific paper

https://doi.org/10.55539/jesd.9.1.1.

Deepening the dialogue on SME business performance: Are there nonlinear effects as well?

Tin Horvatinovic ; Faculty of Economics & Business, University of Zagreb

Abstract

ABSTRACT
Studies analyzing the business performance of small and medium-sized enterprises are high in number and
importance. Throughout the years, a vast number of variables have been introduced to explain what causes
the observed difference in the business performance of small and medium-sized enterprises. However, many
previous studies looked at only linear effects of such variables, while neglecting potential non-linear aspects.
This study tried to fill that gap in the literature by using both linear and quadratic effects of well-established
variables in the literature. By using linear regression on a sample of 245 small and medium-sized enterprises,
this study reports that entrepreneurial experience has a significant quadratic effect, while gender has a
significant linear effect on business performance. Based on the employed methodology and results, limitations
of this study and avenues for future research were outlined.

Keywords

entrepreneurship; SME; business performance

Hrčak ID:

275098

URI

https://hrcak.srce.hr/275098

Publication date:

31.3.2022.

Visits: 632 *