Performance Evaluation of Start-Ups by Using BLUES Methodology

Small and medium-sized enterprises are the engine of growth and innovation in a competitive market economy. Start-ups are small and medium-sized enterprises that are highly innovative, that do not have enough starting capital, and that are expected to earn high profit after barriers are overcome. Start-ups usually appear in high technology and information technology fields and employ inhabitants of local regions. Business incubators provide the necessary background for start-up firms especially discounted office space, consulting, and other services. In spite of the important role of business incubators in regional and the national economy, in the Czech Republic there is no institution that registers business incubators, start-ups and spin-offs. This lack of information results in a situation that makes interdependency and cooperation of incubators is nearly impossible. At the same time the effectiveness of existing start-ups and spin-offs is not evaluated periodically so that needed feedback is missing which makes viability improvement more difficult. The quality and range of services connected with infrastructure will have to be changed to be able to support development of innovative firms, to convey contacts between businesses and institutions of research and development and to provide tools supporting results of research and development in companies. Services should also provide mediation and facilitation of access of firms to applied research. The aim of the paper is to evaluate performance of start-up firms by using methodology BLUES". There have been described a several ways how to evaluate performance of young companies, but there have not been introduced many methods for evaluation of start-ups. Methodology BLUES is one those focused on start-up firms and their evaluation.