Work detail

Estimating the Efficiency of Small and Medium Enterprises in the Czech Republic

Author: Bc. Jan Průša
Year: 2008 - summer
Leaders: doc. Ing. Vladimír Benáček CSc.
Work type: Bachelors
Language: English
Pages: 60
Awards and prizes: B.A. with distinction from the Dean of the Faculty of Social Sciences for an extraordinarily good bachelors diploma thesis.
Abstract: This thesis analyzes the efficiency of Czech small medium enterprises. We use the data from 2002 to 2005 of thirty manufacturing industries, each divided into five subgroups according to the number of employees. We combine two types of methods: We employ standard and advanced robust data envelopment analysis (DEA) to obtain cross-sectional rankings; and stochastic frontier analysis (SFA) to make statistical inference on the production process.
The results reveal substantial variance in the efficiency scores, which is only partly removed by the robust DEA specification. Both SFA and DEA suggest an inverse relationship between size in terms of employees and efficiency, but this relationship is not statistically significant. On the contrary, our tests strongly support the presence of a systematic gap between common practice and best practice.
Our results further demonstrate that Czech SME depend more on labour than on capital. The impact of investment or intangible assets such as software or patents is negligible. Finally a simple test for time effect shows that between 2003 and 2005 Czech SME moved towards higher efficiency.
Downloadable: Bachelor Thesis of Jan Průša


Česká Spořitelna


Patria Finance