Multi-Criteria Decision-Making in SMEs Venture Capital Allocation: Analytic Hierarchy Process and Double Auction Approach

Abstract

Small and medium-sized enterprises (SMEs) make a significant contribution to the economy and can reduce the unemployment rate. To improve their success, SMEs often need outside support, such as venture capital or other sources of financing. For governments, private investors, and banks to provide financial support, it is important to identify relevant criteria to evaluate the future success of SMEs. To evaluate SMEs and allocate venture capital effectively, this study proposes a multi-criteria decision-making technique that combines the Analytic Hierarchy Process (AHP) and the double auction method. The double auction approach is used to match SMEs with investors based on their AHP scores and funding needs. The AHP is used to assess the importance of various factors that influence SME success. This study aims to support an effective and informed decision-making process for the distribution of venture capital to SMEs by bringing these two methods together to promote their growth and success.