Forecasting in small and medium business

Abstract

A wide variety of forecasting methods, insufficient awareness of the necessity of forecasting among business people, and the complexity of forecasting techniques hinder their practical application in small and medium-sized enterprises. The article deals with the forecasting methods that are applied most frequently. When selecting a specific forecasting technique to be applied in a particular situation, one has to take into consideration a considerable number of factors. The most significant ones are cost and accuracy or, in other words, the combinations of accuracy and cost that are deemed best by management under specific circumstances.