The influence of support programs on the financial performance and viability of small-medium sized enterprises

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2010 (EN)
The influence of support programs on the financial performance and viability of small-medium sized enterprises (EN)

Athanasopoulou, Maria (EN)

Boutsouki, Dr Christina (EN)
Kyrgidou, Lida (EN)
Plakogiannaki, Dr Emmanouela (EN)
School of Economics, Business Administration and Legal Studies, Executive MBA (EN)
Ziamou, Dr Lilia (EN)

Recognition of the role of SMEs in economy’s growth has led to the development of support systems in order to boost SMEs’ activities. However, the effectiveness of these support mechanisms to the SMEs’ performance is still a developing area of study. The current paper investigates the impact of support programs to SMEs’ financial performance and viability ratios, using a sample of 124 SMEs integrated in the first pronouncement of the Peripheral Entrepreneurial Programs in the context of the C’ Community Support Framework. Furthermore the study involves interviews with 3 owners-managers of supported SMEs regarding the effectiveness of these programs and their potential improvement. The paper statistically compares the evolution of financial performance and viability ratios of supported firms between the years 2002 (before their assistance) and 2006 (after the assistance). The overall impact was found to be positive on specific financial figures: sales, profits and liquidity figures. Financial viability could not be statistically investigated. The owners-managers of the firms declared that support programs do have positive effect on their business performance, however they regard management, personnel and market conditions more significant factors in a company’s success. Furthermore they emphasized delays in payments as a problem in the whole procedure and proposed provision so that the engaged entities (banks, consultants and others) to be better informed. Problems however were encountered in data collection which did not permit the creation of a more representative sample consisted of both supported and not supported firms so that to boost the validity of the current research results. Key Words: Support Programs, financial performance & viability, small and medium-sized enterprises (EN)


Διεθνές Πανεπιστήμιο της Ελλάδος (EL)
International Hellenic University (EN)


School of Economics and Business Administration, Executive MBA programme (EN)

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