The Impact of Business Analytics on Financial Performance and Economic Contribution of Small and Mid-sized Enterprises

Abstract

This research investigates the influence of Business Analytics (BA) on the financial performance and economic contribution of Small and Medium-sized Enterprises (SMEs). It explores how indicators of financial performance and economic implications like job creation and local investments are affected by the amount of BA applications. In this quantitative study, data was gathered from 200 respondents. Respondents were managers and executives of different SMEs.

According to the results, there is a positive relationship between BA application and SME performance. This is in line with the Resource-Based View (RBV) and Diffusion of Innovations Theory. Particularly, the regression analysis demonstrates that the degree of BA application illustrates nearly 43.4% of the variance in financial performance and economic contribution. According to this, SMEs that apply BA adequately improve economically and usually have better financial performance.

According to the results, BA is indispensable for SMEs. It implies that expanding analytical competence can augment revenue, propel profitability, and offer large economic rewards. The research delivers important insights for managers and policymakers of SMEs as it brings attention to the requirement of support in the integration of BA employing training, capital investment, and infrastructure upgrades. Subsequent investigations should work with a large sample size, investigate other contributing factors, and evaluate the effectiveness of specific BA tools and techniques.

This research concludes that BA helps SMEs improve their performance, establishing a solid framework for utilizing data-driven insights to secure a competitive advantage and foster economic development.