Microfinance and sustainable development of MSMEs and entrepreneurs in Serbia
Keywords:
microfinance, micro, small and medium enterprises, entrepreneurs, sustainability, bank-centric financial system, Serbia.
Abstract
The focus of the study is the analysis of the potential benefits for the growth and sustainable development of micro, small and medium enterprises (MSMEs) and entrepreneurs that would arise from the improvement of the domestic financial system through the introduction and representation of microfinance institutions. The study has been conducted on a sample of 150 respondents from the banking and private sector. Data analysis has been performed by a non-parametric method, the chi-square χ2 test of independence. Statistical data processing is performed using the statistical software package IBM SPSS Statistics 21. Results of the study indicate that the domestic financial system is banking-centric, undeveloped, poor and does not encourage sustainable development and growth of micro, small and medium enterprises and entrepreneurs. Also, the research confirmed that the introduction of microfinance institutions would contribute to the improvement of the domestic financial system, the establishment of micro, small and medium enterprises and entrepreneurs, as well as their positive business performance results and sustainable development.
References
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Soldić Aleksić, J. (2018). Primenjena analiza podataka. Beograd: CID Ekonomskog fakulteta Univerziteta u Beogradu.
Sommer, C. (2022). Unintended consequences of microfinance: Effects on credit access for small‐ and medium‐sized enterprises. Journal of International Development, 34(3), 564–586. https://doi.org/10.1002/jid.3614
United States Agency for International Development. (2017). Sources of financing of small and medium enterprises in Serbia. Belgrade, Serbia: Author.
Yusufu, S. O., Olusegun, S., & Hakeem, T. (2020). Effect of micro finance bank on the growth of Small and Medium Enterprises in Nigeria. KIU Interdisciplinary Journal of Humanities and Social Sciences, 1(2), 127-142. https://doi.org/10.59568/KIJHUS-2020-1-2-09
Anande-kur, F., & Faajir, A. (2020). Micro-Finance and Performance of Micro, Small and Medium Enterprises in Makurdi Metropolis. International Journal of Accounting & Finance (IJAF), 9(2), 1–17. Retrieved from https://www.inderscience.com/jhome.php?jcode=ijaf
Babajide, A. (2012). Effects of Microfinance on Micro and Small Enterprises (MSEs) Growth in Nigeria. Asian Economic and Financial Review, 2(3), 463-477. Retrieved from https://www.aessweb.com/journals/5002
Bagudu, H. D., Khan, S. J. M., & Roslan, A. H. (2016). The impact of microfinance institutions on the development of small and medium enterprises: a case study of Lagos state. International Research Journal of Management, IT and Social Sciences, 3(9), 95-106. Retrieved from https://sloap.org/journals/index.php/irjmis/
Behrens, A. (2021). Scaling-Up Green Finance for the Private Sector in Serbia in the Post-Pandemic World. Belgrade, Serbia: United Nations Development Programme.
Drexler, B., van Bork, G., Mueffelmann, S., Hashemian, C., Siek, H., Sturm, M., Benaglio, N., & Pytkowska, J. (2020). Microfinance in the European Union: Market analysis and recommendations for delivery options in 2021-2027. Brussels, Belgium: European Commission.
Erić, D., Beraha, I., Đuričin, S., Kecman, N., & Jakšić, B. (2012). Finansiranje malih i srednjih preduzeća u Srbiji. Beograd: Institut ekonomskih nauka i Privredna komora Srbije.
Ideba, E. T., Orji, A., Ogbuabor, J. E., Nwodo, I. P., & Anthony-Orji, O. I. (2023). Does Microfinance Bank Credit Influence Output Performance in Nigeria? A New Empirical Evidence from the Dols Approach. Journal of Academic Research in Economics, 15(3), 612–626. Retrieved from https://www.jare-sh.com/
Jain, S. (2019). Microfinance for Micro, Small and Medium-Sized Enterprises in Jaipur, Rajasthan: Sources and Challenges. OORJA - International Journal of Management & IT, 17(2), 23–31. Retrieved from http://oorja.org.in/user/index.php
Kimmitt, J., & Munoz, P. (2017). Entrepreneurship and financial inclusion through the lens of instrumental freedoms. International Small Business Journal, 35(7), 803-828. Retrieved from https://journals.sagepub.com/home/isb
Lash, N. A., & Batavia, B. (2021). Microfinance and business regulations in emerging markets. Enterprise Development & Microfinance, 32(4), 235–248. https://doi.org/10.3362/1755-1986.20-00017
Musau, E. G. (2015). Effects of micro-finance institutions’ services on the sustainability of small enterprises: A survey of small enterprises in Huruma Estate, Eldoret Town. International Journal of Business and Management Invention, 4(1), 12-31. Retrieved from https://ijbmi.org/
National Bank of Serbia. (2020). Banking sector in Serbia (Fourth Quarter Report 2019). Belgrade, Serbia: Author.
Niaz, M. U., & Khan, A. A. (2021). Financial Inclusion through Microfinance and Entrepreneurial Development. City University Research Journal (CURJ), 11(4), 638–650. Retrieved from https://cusitjournals.com/index.php/CURJ
Nikolić, M., & Filipović, M. (2022). The report about small and medium-sized enterprises
and entrepreneurship. Belgrade, Serbia: Ministry of Economy.
Odoom, F., & Dzisi, S. (2015, September). Microfinancing and the Performance of Small and Medium Enterprises in Ghana. Paper presented at the European Conference on Innovation & Entrepreneurship, Genoa. Retrieved from https://www.proquest.com/docview/1728249442?sourcetype=Conference%20Papers%20&%20Proceedings
Ojong, N., & Simba, A. (2019). Fostering micro-entrepreneurs' structural and relational social capital through microfinance. Journal of Small Business & Entrepreneurship, 31(1), 1-20. Retrieved from https://www.tandfonline.com
PricewaterhouseCoopers. (2017). Ex-ante study to assess the potential future use of Financial Instruments to deploy IPA resources in support of Small and Medium-sized Enterprises (SMEs) in Serbia. Belgrade, Serbia: Author.
Rotich, I., Lagat, C., & Kogei, J. (2015). Effects of microfinance services on the performance of small and medium enterprises in Kenya. African Journal of Business Management, 9(5), 206-211. Retrieved from https://academicjournals.org/journal/AJBM
Rousseau, P. L., & Wachtel, P. (2017). Financial Systems and Economic Growth: Credit, Crises, and Regulation from the 19th Century to the Present. New York: Cambridge University Press.
Ruslan, R. A. H. M., Gan, C., Baiding H., & Quang, N. T. T. (2019). Accessibility to Microcredit by Small- and Medium-sized Enterprises in Malaysia. International Journal of Business & Economics, 18(3), 287–305. Retrieved from https://ijbe.ielas.org/index.php/ijbe
Soldátková, N., & Černý, M. (2022). Microfinance in Sub-Saharan Africa: social efficiency, financial efficiency and institutional factors. Central European Journal of Operations Research, 30(2), 449–477. https://doi.org/10.1007/s10100-021-00789-8
Soldić Aleksić, J., & Hroneos Krasavac, B. (2009). Kvantitativne tehnike u istraživanju tržišta. Beograd: CID Ekonomskog fakulteta Univerziteta u Beogradu.
Soldić Aleksić, J. (2018). Primenjena analiza podataka. Beograd: CID Ekonomskog fakulteta Univerziteta u Beogradu.
Sommer, C. (2022). Unintended consequences of microfinance: Effects on credit access for small‐ and medium‐sized enterprises. Journal of International Development, 34(3), 564–586. https://doi.org/10.1002/jid.3614
United States Agency for International Development. (2017). Sources of financing of small and medium enterprises in Serbia. Belgrade, Serbia: Author.
Yusufu, S. O., Olusegun, S., & Hakeem, T. (2020). Effect of micro finance bank on the growth of Small and Medium Enterprises in Nigeria. KIU Interdisciplinary Journal of Humanities and Social Sciences, 1(2), 127-142. https://doi.org/10.59568/KIJHUS-2020-1-2-09