The application of saw method to support the decisions concerning start-up financing

Abstract

The aim of the paper was to present the problem of risk assessment of financing start-ups of individual economic activities as the problem of multi-criteria decision making. The detailed goal of the study was to build a decision model and its empirical verification. Research methodology – The SAW method - was used to build the model based on the concept of the aggregation of the decision-maker's preferences. In the process of building the model, the correspondence analysis was also used. Result – The result of the research is the decision model, the usability of which has been subjected to empirical verification. Originality/value – The model approach proposed in the paper is an original approach for two reasons: Firstly, the correspondence analysis was used in the stage of assigning ranks to verbal or interval variables; Secondly, the use of Cramer's V coefficient to calculate the weightings of criteria and decision sub-criteria was proposed, hence the resulting algorithm of the model should be recognized as the added value of the conducted research.