Abstract:

This article describe empirical study focused on evaluation of business efficiency of manufacturing small and medium enterprises (SME) in countries of Eastern Europe and investigation of its dynamics over time. For these purpose, method of data envelopment analysis (DEA) were applied to data received from an annual enterprise survey conducted by the World Bank. The study was performed in order to identify which countries are more favorable for business activity. We have defined the country ranking based on the output of DEA models and compared it with Ease of doing business ranking provided by the World Bank [21] and corruption ranking provided by the transparency International Agency [18] in order to identify how level of business efficiency corresponds to business environment.