Entrepreneurship policy evaluation and decision analysis for SMEs

Since the second half of 2007, the global economy has felt the effects of the credit crunch, and the sub-prime mortgage crisis in the US has resulted in a loss of consumer confidence. Small and medium enterprises (SMEs) have been the foundation for economic development and have provided important contributions to job creation. Economic policy makers worldwide are trying to implement actions that will enhance the competitive vitality of SMEs and foster entrepreneurial drive through effective entrepreneurship policy. Surprisingly, prior research has given little attention to the evaluation of entrepreneurship policy. The paper proposes an integrated model that combines the Decision Making Trial and Evaluation Laboratory (DEMATEL), analytic network process (ANP), and zero-one goal programming (ZOGP) methods. This model considers the interdependent relationship among complex policy evaluation criteria and alternatives, and addresses the constraints of itemized annual budgets. Then, the paper applies the model to an empirical case study of entrepreneurship policy for SMEs in Taiwan. The evaluation results show that three alternatives (incubator center, financial assistance, and knowledge-sharing platforms) are selected under budget constraints and the model provides an effective solution to help policy makers evaluate and select feasible entrepreneurship policy mix. (C) 2011 Elsevier Ltd. All rights reserved.