The hypotheses in this study are related to the drivers of firm growth in SMEs in the EU. The drivers of firm growth: Economics: Drivers of firm growth Research Paper, UCC, Ireland
| University | University College Cork (UCC) |
| Subject | Economics: Drivers of firm growth |
1.1 Outline of tested hypotheses
The hypotheses in this study are related to the drivers of firm growth in SMEs in the EU. The drivers of firm growth have been understood as business environment factors determining operating sustainability, compatibility, success, and profitability. For instance, access to finances, availability of supporting partners, and access to skill and asset resources create a high-performing business environment. These factors make the business environment more suitable for firms trying to operate successfully. Therefore, these factors are the drivers of SME growth in the EU. Three hypotheses have been tested in terms of the impact or influence of each of the independent factors with business environment compatibility, the dependent factor (Jatnika, 2015). The fourth hypothesis aims at testing the relationship between two independent variables to understand how much skill availability determines the performance of the business environment.
1.2 Used techniques and data
The hypotheses have been tested using both bivariate and multiple regression analysis. The bivariate approach involves the use of correlation scores and the corresponding p-values to decide if a hypothesis should be accepted or rejected. The multiple linear regression analysis involved the use of Unstandardized coefficients for accepting or rejecting alternative hypotheses (Pallant, 2020). The data used for the hypothesis testing is the response of 16365 samples on 8 different questions related to the elements of a business environment. Data transformation has been done before running the analysis to compute pairs of related survey questions into quantitative variables.
1.3 Structure of the report
The purpose of this report is to present the relationship between the quantitative variables to understand the drivers of SME growth in the EU. The report contains a description of the hypotheses followed by a supporting literature review. The report also contains highlights on the entrepreneurs surveyed and the key variables. The report further presents the analysis of the data and conclusions from the findings
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