FACTORS THAT DETERMINE SUCCESS OF SMALL AND MEDIUM ENTEPRISES. THE ROLE OF INTERNAL AND EXTERNAL FACTORS

The paper investigates how the success of an enterprise, particularly a small enterprise, can be measured and quantified. The methodology undertakes a review of the state-of-the-art and comes with own suggestions for defining factors (or indicators) that determine success of small and medium enterprises (SMEs). The paper presents different approaches to defining enterprise success and discusses whether subjective or objective measures should be applied. Our findings directly inform the theoretical model presented in this study. The literature review enabled to draw both the theoretical model and the economic model that would test the success factors and their potential impact. This study offers an insight into the SMEs issue and their functioning on the market. The results have significant implications for the researches and policy-makers and can become a basis for preparing relevant enterprise support policies.