Data envelopment analysis and assurance regions for assessing small business development center efficiency and unique projections

Data envelopment analysis and assurance regions for assessing small business development center efficiency and unique projections

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Article ID: iaor20003213
Country: United States
Volume: 44
Issue: 4
Start Page Number: 533
End Page Number: 542
Publication Date: Jul 1996
Journal: Operations Research
Authors: , , , ,
Keywords: small businesses
Abstract:

The University of Houston (UH) Small Business Development Centers (SBDCs) were analysed by Data Envelopment Analysis (DEA) and Assurance Region (AR) methods. The DEA/AR analyses were made for 11 decision-making units (DMUs) in 1990 and 1991 and for 13 DMUs in 1992. The DEA ratio method was applied to Model I in all three years; unique optimal solutions to the DEA-inefficient DMUs were verified. Also, autoregressions were applied to eliminate some DEA-efficient DMUs requiring unreasonable multipliers to maximise efficiency. In addition, measures of returns-to-scale (RTS) intervals from application of the DEA convex method in 1992 showed several additional DEA-efficient DMUs needed some additional funds to work toward the most productive scale size.

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