Efficiency and profitability along the lifecycle stages of small enterprises

Csaba Bálint Illés, Hilda Hurta and Anna Dunay

International Journal of Management and Enterprise Development, 2015, vol. 14, issue 1, 56-69

Abstract: The Adizes lifecycle model is a widely used model for determining the different development stages of enterprises. Lifecycle stages may be differentiated even in the smallest companies, and the model may be used in analyses before making plans and can be a practical tool for managers in the decision-making process. We conducted an overall survey among Hungarian SMEs in 2012, and examined the different attitudes and behaviour of managers in different lifecycle stages of their companies and the most important motivations and driving forces of their decisions in the specific stages. Firstly, we analysed the financial performance of enterprises according to the results of their balance sheet, by which we determined four main categories depending on their business success. Our results proved that the profitability of enterprises is strongly influenced by their lifecycle stage and the growing process is also determined by the age of the enterprise.

Keywords: SMEs; lifecycle stages; profitability; competitiveness; Greiner; growth model; Adizes; lifecycle model; Hungary; enterprise efficiency; small firms; small and medium-sized enterprises; enterprise development; enterprise lifecycle; decision making; firm growth; motivation; driving force; financial performance; firm performance. (search for similar items in EconPapers)
Date: 2015
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.inderscience.com/link.php?id=69311 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:ijmede:v:14:y:2015:i:1:p:56-69

Access Statistics for this article

More articles in International Journal of Management and Enterprise Development from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().