Multicriteria decision aid and financial structure of SMEs

Abstract

The operational research techniques were the first to be used in the solution of some financial problems. The traditional financial approach analyzes these problems in the context of optimization. It is based on the principle according to which an optimal financial structure is the one that allow the enterprise to maximize the expected return for a given level of risk. In this case, the solution of financial problems is based on an evaluation criterion (mono-criterion paradigm). But in reality, the modeling of financial decisions should take into consideration multiple criteria. In the case of an SME, these criteria should include those related to the owner-manager which represents the main decision maker. The aim of this paper is to examine the contribution of multicriteria analysis methods in solving financing problems, focusing on the financial structure decisions in SMEs. The results of this research show that using multicriteria analysis allows SMEs to structure the financial problem, evaluate financing alternatives using financial and non-financial criteria (both quantitative and qualitative), and achieve to a collective, transparent and justified decision.