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


  • Dejan ERIC

    (Institute of Economic Sciences, Belgrade, Serbia)

  • Isidora BERAHA

    (Institute of Economic Sciences, Belgrade, Serbia)

  • Sonja DJURICIN

    (Institute of Economic Sciences, Belgrade, Serbia)


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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    References listed on IDEAS

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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, Institute of Economic Sciences.
    2. repec:mje:mjejnl:v:12:y:2017:i:2:p:129-140 is not listed on IDEAS
    3. repec:mje:mjejnl:v:13:y:2017:i:2:p:129-140 is not listed on IDEAS

    More about this item


    innovative small and medium-sized enterprises; economic growth and development; financin; risk; crisis;

    JEL classification:

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


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