A Scorecard for Small Business Performance

Abstract

Evaluating organizational performance  of small businesses has frequently  been a neglected managerial function.   When evaluation efforts have been undertaken, they have ranged from  simple  internal  reviews  to co1nplex  and  often  costly  audits conducted  by independent parties.  However, most individuals working in a small business rarely take the time or make the effort to undertake a comprehensive review of their business activities.  To begin the process of answering  the important question  of how well a small  business is performing,  a straightforward approach that is easy to prepare and interpret on a regular basis is required. Realizing that most individuals involved with small businesses are pressed for  time, an  easy-to-use  evaluation  instrument  designed  to focus  attention  on strategic performance indicators (SPIs) has been developed. These SPIs focus attention on the primary functional areas of a business: management, marketing, and finance.  Each question has been designed to help the reviewer think about the importance of strategic performance indicators to the overall success of the business.