Assessment of opportunities for construction enterprises in European Union member states using the MULTIMOORA method

Abstract

A large part of the construction sector consists of small and medium enterprises (SMEs), which play a key role in the dynamics of the European economics. Thus, to help them achieve their growth potential, the European Union (the EU) has been channeling all possible efforts towards promotion of entrepreneurship and development of more advantageous business conditions for small enterprises. The article addresses the relationship between the significance of construction sector actors for economic development on the national scale and business development potential in the European states. The business development potential of the EU member states is suggested to be assessed with the help of the decision-making tool MULTIMOORA. To assess and rank the countries, eight integrated criteria have been selected for this particular purpose. MULTIMOORA is a quantitative method, which compares multiple and optimum objectives, expressed in different units, on as non-subjective basis as possible. MULTIMOORA is composed of three parts: the Ratio System, the Reference Point and the full Multiplicative Form, all of which are of the same importance and each in control of two others. With the help of results and the theory of dominance, countries were ranked according to suitability of their environment for business.