The study examines the basic research methodologies and approaches for assessing business performance. It provides a critical literature analysis on how perception-based evaluation can be used to evaluate performance, specifically for SMEs. The analysis of the literature covers articles from major journals related to the topic. The methodology followed during the conduct of this paper involves starting with the broad case of articles in general business performance measurement, then focusing on the indicators used to study SMEs. Next, the review screens the list, focusing on the differences between subjective and objective measures. The validity issue related to subjective measures is also discussed.