THE USE OF BALANCED SCORECARD IN SME

Abstract

Siska Elvani^a, Jani Januar^b

^a Faculty of Agriculture University of Jember, Indonesia

^b Faculty of Agriculture University of Jember, Indonesia

 

3elsiska3@gmail.com

 

The purpose of this study was to determine using Balanced Scorecard for SMEs. SMEs is business unit that has an important role in development, the first is, economic growth and employment and second is reducing poverty. However, in general SME awareness of performance appraisal is still lacking. Performance measurement is important for planning future goals so that SMEs is able to survive in competitive market. One of the measurement performance method was looks at the financial and non-financial aspects is the Balanced Scorecard (BSC). BSC is used in large companies, raising questions about whether BSC can be applied to SMEs. The research method used in this article was a literature study. The study results show that BSC can be used in SMEs. The BSC design for SMEs is no different from large companies. The difference is the duration of the process. The process is quicker in SME because of less complex organisational structures.

Keywords: SMEs, performance measurement, balanced scorecard