Financing SMEs in Macedonia

Petrevska, Biljana (2014) Financing SMEs in Macedonia. In: International Conference "SMEs Development and Innovation: Building Competitive Future of South-Eastern Europe", 3-4 Oct 2014, Ohrid, Macedonia.

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Entrepreneurship is closely related to the small and medium sized enterprises (SMEs). Regardless the country’s level of economic development, the SMEs encompass over 98% of business entities in the contemporary economy. They are particularly important for the job creation, GDP, value added, as well as innovation, local and regional development and so forth. The objective of this research is two-folded: firstly, to describe the sources of financial support to the SMEs, and secondly, to identify and address the most applied sources of financing. For the purpose of that, the research is elaborating the case of Macedonia. It poses comparative analyses based on stylized facts obtained from desk-research and available sources of secondary data. In this line, the paper elaborates the significance of the Macedonian Bank for Development Promotion (MBDP) in providing financial support to the SMEs in Macedonia. The data set covers the period 1999-2011. Since the quantitative analyses do not always disentangle key facts necessary for pointing out concluding remarks regarding particular issues, analyses based on qualitative approach are additionally introduced. This empirical investigation underlined that the role of the MBDP is additionally important since it gave support in the period when the interest rates (nominal and real) of the commercial banks were extremely high and when the SMEs were practically excluded from the financing of the banking sector. Finally, the research findings point to fact that the MBDP has substantial role in terms of financing and development of the SMEs, as well as the entrepreneurship in Macedonia.

Item Type: Conference or Workshop Item (Paper)
Uncontrolled Keywords: Financing, SMEs, Macedonian Bank for Development Promotion, Macedonia
Subjects: Social Sciences > Economics and business
Divisions: Faculty of Tourism and Business Logistics
Depositing User: Biljana Petrevska
Date Deposited: 19 Dec 2014 13:16
Last Modified: 19 Dec 2014 13:16

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