EVALUATION OF ECONOMIC VALUE ADDED (EVA) IN SMALL SERVICE SECTOR ENTERPRISES

Abstract

The article focuses on a comprehensive study of the evaluation of Economic Value Added (EVA) as a modern and effective tool for assessing the performance and competitiveness of small enterprises operating in the service sector. In the context of rapid digital transformation, increasing globalization, and intensifying market competition, traditional financial indicators such as profit, return on investment, or cash flow often fail to provide a complete picture of a small company’s efficiency and value creation potential. The EVA methodology, which reflects the true economic profit of an enterprise after accounting for the cost of invested capital, offers a more objective and strategically significant perspective on financial performance, particularly relevant for small service businesses where resources are limited and efficient capital utilization is critical. The research demonstrates that the use of the EVA indicator enables managers of small service enterprises to determine whether business operations create or destroy value for owners and stakeholders. This approach helps align financial results with strategic objectives, optimize investment decisions, and identify areas for improving operational efficiency. The article examines the key principles of EVA calculation, emphasizing its importance for small service enterprises, where intangible assets, customer experience, and service quality are decisive factors in generating added value. Special attention is given to the role of EVA in the strategic financial management of small enterprises. Integrating EVA into performance evaluation contributes to greater transparency, accountability, and rational use of scarce resources. Moreover, implementing the EVA model supports the adoption of a value-oriented management paradigm, focusing on long-term growth and sustainability rather than short-term profitability. The study also explores the potential for combining EVA with other analytical tools, such as ROI, MVA, and Balanced Scorecard, to create a multidimensional framework for performance assessment adapted to the scale and specificity of small service enterprises. The results of the research confirm that applying the EVA approach in small service businesses improves management efficiency, optimizes cost structures, enhances customer satisfaction, and strengthens competitive advantages. The authors conclude that the adoption of EVA methodology in small service enterprises can promote sustainable business development, ensure strategic stability, and increase long-term market value.