Key performance indicators of economic and financial model of financial and economic condition evaluation of SMEs in the region

Abstract

The paper presents a research of reducing the dimension of the number of quantitative indicators to measure (business activity, market potential, creditworthiness, the quality of staffing and moral, financial stability) applying the principal component analysis, which allowed the authors to determine new linearly independent and mathematically informative key performance indicators (KPI) for the development the efficient system of estimating the financial condition of local small and mediums enterprises, which taking into account the regional and industry specific features.