FINANCING SOURCES AS A LIMITING FACTOR OF DEVELOPMENT SMALL AND MEDIUM-SIZED ENTERPRISES IN THE REPUBLIC OF SRPSKATihomir Spremo |
Published 2018 |
ABSTRACT
The name of this paper inevitably raises the question: why seek the influence of funding sources on the development of small and medium-sized enterprises in a country? The simple answer is that the topic is "important", because even in the most developed countries today, one of the constant problems facing small and medium enterprises (SMEs) is the difficult access to capital, where there are fairly agreed attitudes in scientific and professional circles. The aim of the study is to analyze, on the basis of the results of the research, the key aspects of SME financing in the Republic of Srpska and propose possible solutions. To examine and try to make it clear how much the lack of adequate sources of capital affects the development of SMEs with implications for the economy in the Republic of Srpska. The research has shown that in the Republic of Srpska, the sources of financing for SMEs are not sufficiently developed. Insufficient and limited financial resources can not meet the needs of SMEs for capital, which slows down their development. Such problematic financing and inadequate financial support for small enterprises is an obstacle to the faster development of the Republika Srpska economy. SMEs are still dependent on external financing banks, despite programs aiming at increasing access to equity.
Keywords: sources of financing, small and medium enterprises, capital, financial support.