Multi-Criteria Analysis of Startup Investment Alternatives Using the Hierarchy Method
In this paper, we discuss the use of multi-criteria analysis for investment alternatives as a rational, transparent, and systematic approach that reveals the decision-making process during a study of influences and relationships in complex organizational systems. It is shown that this approach consi...
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| Format: | Article |
| Language: | English |
| Published: |
MDPI AG
2023-04-01
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| Series: | Entropy |
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| Online Access: | https://www.mdpi.com/1099-4300/25/5/723 |
| _version_ | 1797600250119061504 |
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| author | Tamara Kyrylych Yuriy Povstenko |
| author_facet | Tamara Kyrylych Yuriy Povstenko |
| author_sort | Tamara Kyrylych |
| collection | DOAJ |
| description | In this paper, we discuss the use of multi-criteria analysis for investment alternatives as a rational, transparent, and systematic approach that reveals the decision-making process during a study of influences and relationships in complex organizational systems. It is shown that this approach considers not only quantitative but also qualitative influences, statistical and individual properties of the object, and expert objective evaluation. We define the criteria for evaluating startup investment prerogatives, which are organized in thematic clusters (types of potential). To compare the investment alternatives, Saaty’s hierarchy method is used. As an example, the analysis of three startups is carried out based on the phase mechanism and Saaty’s analytic hierarchy process to identify investment appeal of startups according to their specific features. As a result, it is possible to diversify the risks of an investor through the allocation of resources between several projects, in accordance with the received vector of global priorities. |
| first_indexed | 2024-03-11T03:45:53Z |
| format | Article |
| id | doaj.art-951facf1e50940e2a9852cc86692afe3 |
| institution | Directory Open Access Journal |
| issn | 1099-4300 |
| language | English |
| last_indexed | 2024-03-11T03:45:53Z |
| publishDate | 2023-04-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Entropy |
| spelling | doaj.art-951facf1e50940e2a9852cc86692afe32023-11-18T01:15:28ZengMDPI AGEntropy1099-43002023-04-0125572310.3390/e25050723Multi-Criteria Analysis of Startup Investment Alternatives Using the Hierarchy MethodTamara Kyrylych0Yuriy Povstenko1Department of Mathematics and Computer Sciences, Faculty of Science and Technology, Jan Dlugosz University in Czestochowa, al. Armii Krajowej 13/15, 42-200 Czestochowa, PolandDepartment of Mathematics and Computer Sciences, Faculty of Science and Technology, Jan Dlugosz University in Czestochowa, al. Armii Krajowej 13/15, 42-200 Czestochowa, PolandIn this paper, we discuss the use of multi-criteria analysis for investment alternatives as a rational, transparent, and systematic approach that reveals the decision-making process during a study of influences and relationships in complex organizational systems. It is shown that this approach considers not only quantitative but also qualitative influences, statistical and individual properties of the object, and expert objective evaluation. We define the criteria for evaluating startup investment prerogatives, which are organized in thematic clusters (types of potential). To compare the investment alternatives, Saaty’s hierarchy method is used. As an example, the analysis of three startups is carried out based on the phase mechanism and Saaty’s analytic hierarchy process to identify investment appeal of startups according to their specific features. As a result, it is possible to diversify the risks of an investor through the allocation of resources between several projects, in accordance with the received vector of global priorities.https://www.mdpi.com/1099-4300/25/5/723multi-criteria analysiscriteria compositioninvestmentstartupSaaty’s methodglobal priority vector |
| spellingShingle | Tamara Kyrylych Yuriy Povstenko Multi-Criteria Analysis of Startup Investment Alternatives Using the Hierarchy Method Entropy multi-criteria analysis criteria composition investment startup Saaty’s method global priority vector |
| title | Multi-Criteria Analysis of Startup Investment Alternatives Using the Hierarchy Method |
| title_full | Multi-Criteria Analysis of Startup Investment Alternatives Using the Hierarchy Method |
| title_fullStr | Multi-Criteria Analysis of Startup Investment Alternatives Using the Hierarchy Method |
| title_full_unstemmed | Multi-Criteria Analysis of Startup Investment Alternatives Using the Hierarchy Method |
| title_short | Multi-Criteria Analysis of Startup Investment Alternatives Using the Hierarchy Method |
| title_sort | multi criteria analysis of startup investment alternatives using the hierarchy method |
| topic | multi-criteria analysis criteria composition investment startup Saaty’s method global priority vector |
| url | https://www.mdpi.com/1099-4300/25/5/723 |
| work_keys_str_mv | AT tamarakyrylych multicriteriaanalysisofstartupinvestmentalternativesusingthehierarchymethod AT yuriypovstenko multicriteriaanalysisofstartupinvestmentalternativesusingthehierarchymethod |