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Financing innovative small and medium-sized enterprises in times of crisis

Author

Listed:
  • Dejan ERIC

    (Institute of Economic Sciences, Belgrade, Serbia)

  • Isidora BERAHA

    (Institute of Economic Sciences, Belgrade, Serbia)

  • Sonja DJURICIN

    (Institute of Economic Sciences, Belgrade, Serbia)

Abstract

Small and Medium-sized Enterprises (SME) in general and particularly innovative ones are becoming an increasingly important factor on the road to achieving smart, sustainable and comprehensive development. Because of their propensity to innovative undertaking and risk, SMEs contribute significantly to economic growth but are generally less productive and pay the cost of high rates of death and lower rates of profitability. Financing SMEs is risky and uncertain and for innovative SMEs it is even more difficult to access financing. When financing innovative activities, investors perceive high risks and it is even more emphasized in times of crisis when there is an increase in the cost of capital. Institutional support and governmental programmes have an important role in closing financial gap that innovative SMEs are faced with. Because the survival and development of SMEs is to a great extant determined by their ability to access favorable financing, the main objective of this paper is to provide policy recommendations for promoting availability of financing to innovative SMEs in order to foster economic recovery and more dynamic development of Serbia. The recommendations are to emerge from analyzes and evaluation of currently available sources of finance for innovative SMEs.

Suggested Citation

  • Dejan ERIC & Isidora BERAHA & Sonja DJURICIN, 2011. "Financing innovative small and medium-sized enterprises in times of crisis," Romanian Journal of Economics, Institute of National Economy, vol. 33(2(42)), pages 59-74, December.
    • Handle: RePEc:ine:journl:v:2:y:2011:i:42:p:59-74
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    Citations

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    Cited by:

    1. Isidora Beraha & Ivana Stankovic, 2012. "The Role of Development Entrepreneurship and Small and Medium Entrerprises in Managing Structural Changes," Book Chapters, in: João Sousa Andrade & Marta C. N. Simões & Ivan Stosic & Dejan Eric & Hasan Hanic (ed.), Managing Structural Changes - Trends and Requirements, edition 1, volume 1, chapter 15, pages 303-319, Institute of Economic Sciences.
    2. repec:mje:mjejnl:v:12:y:2017:i:2:p:129-140 is not listed on IDEAS
    3. Eva Koisova & Jozef Habanik & Zuzana Virglerova & Zoltan Rozsa, 2017. "SMEs Financing as an Important Factor of Business Environment in Slovak Republic Regions," Montenegrin Journal of Economics, Economic Laboratory for Transition Research (ELIT), vol. 13(2), pages 129-140.

    More about this item

    Keywords

    innovative small and medium-sized enterprises; economic growth and development; financin; risk; crisis;
    All these keywords.

    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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