FINANCIAL SUPPORT AS A DETERMINANT OF SMALL AND MEDIUM-SIZED ENTERPRISES ECONOMIC GROWTH
Abstract
Abstract: European Union integration and revitalization of economy after the global economic crisis require small and medium-sized enterprises in Republic of Serbia to face more complex and dynamic environment which requires greater competitiveness in terms of improved quality, efficiency and management practices. However, the competitiveness of the regional SMEs is still at a much lower level compared to other European SMEs. Pointing out to the characteristics of small and medium enterprises, a logical conclusion can be drawn that state support for this sector is important. When forming the support modalities, the whole sector should not be viewed unambiguously. This paper analyses the importance of financial and non financial support for SMEs in terms of organizational capability and competiveness. Roy’s test, Pearson's coefficient of contingency (χ), and multiple correlation coefficients (R) are applied as univariate statistical procedures. By applying MANOVA and discriminant analysis, the results point out to a difference and clearly defined boundary between other forms of support and financial forms of support in all the analyzed units. The research results indicate that the financial forms of support for SMEs are perceived to impact the SMEs organization capability and competitiveness and the largest contribution of respondents’ unit favours the benefit of state institutions in forms of financial support.
References
Bell, J. C., & Young, S. (2004). Small firm internationalisation and business strategy. International Small Business Journal, 22 (1), 23-54.
Ignjatijević, S., Babović, J., & Đorđević, D. (2012). Balasa index in determining comparative advantage in the export of agricultural products. Teme, Vol. 36 (4), 1783-1800.
Irwin, D. (2007). Financing Entrepreneurship at the Regional and Local Level in South-East Europe, OECD Papers: Promoting Entrepreneurship in South-East Europe – Policies and Tools, 6 (12), 15-17.
Jašarević, A. (2013). Mala i srednja preduzeća u Srbiji u eri globalizacije. Ekonomika, 59(1), 101–113.
Julian, C.C. (2003). Export marketing performance: A study of Thailand firms. Journal of Small Business Management, 41 (2), 213-221.
Kapor, P. (1999). Značaj malih izvoznika za jugoslovenski izvoz. U: M. Kovačević i H. Hanić (ur.), Ekonomsko finansijski odnosi sa inostranstvom: moguće alternative u funkciji obnove i razvoja jugoslovenske privrede: savetovanje jugoslovenskih ekonomista (str. 96–102). Beograd: Naučno društvo ekonomista Jugoslavije.
Knowles, D., Mughan, T. & Lloyd-Reason, L. (2006). Foreign language use among decision makers in successfully internationalized SMEs. Journal of Small Business and Enterprise Development, 13 (4), 620-641.
Kotabe, M. & Czinkota, M.R. (1992). State government promotion of manufacturing exports: gap analysis. Journal of International Business Studies, 23 (4), 637-658.
Lautanen, T. (2000). Modeling small firms’ decision to export - evidence from manufacturing firms in Finland in 1995. Small Business Economics, 14 (2), 107-124.
Leonidas L. C., Palihawadana, D., & Theodosiou, M. (2011). National Export-Promotion Programs as Drivers of Organizational Resources and Capabilities: Effects on Strategy, Competitive Advantage, and Performance. Journal of International Marketing, 19 (2), 1–29.
Lloyd-Reason, L., Damyanov, A., Nicolescu, O. & Wall, S. (2004). Internationalisation Process, SMEs and Transitional Economies: A Four-Country Perspective. International Journal of Entrepreneurship and Innovation Management, 5 (3-4), 206-226.
Lu, J.W., Beamish, P.W. (2002). The Internationalisation and Growth of SMEs. Strategic Management Journal, 22 (6-7), 565-586.
Rakita, B. & Mitić, S. (2012). Networking and clustering as contemporary strategies of business internationalization. U: S. Lovreta, M. Petković i J. Janićijević (ur.), From Global Crisis to Economic Growth. Which Way to Take? Vol. 2, Business and Management (str. 47–78). Belgrade: Faculty of Economics.
Sekulić, M., & Perović, V. (2014). Značaj izvoznih aktivnosti za poslovanje industrijskih preduzeća. Zbornik radova Fakulteta tehničkih nauka, 28(6), 1374–1377.
Seringhaus, F.H.R. (1986) The impact of government export marketing assistance. International Marketing Review, 3 (2), 55-65.
Seringhaus, F.H.R. & Botschen, G. (1991). Cross-national comparison of export promotion services: the views of Canadian and Austrian companies. Journal of International Business Studies, 22(1), 115-133.
Todorović, L. V. (2007). Mala i srednja preduzeća i njihov uticaj na izvoz. Ekonomska diplomatija, 2(7–8), 75–84.
Vapa – Tankosić, J., Ignjatijević, S., & Gardašević, J. (2015). Evidence of Export Perfomance Determinants prior to EU Integration: Is The Single Market too far away?. Teme, XXXIX (4), 1257-1276.
Vapa-Tankosić, J., Redžepagić S., & Stojsavljević, M. (2013). Trade, Regional Integration and Economic Growth: MEDA Region and the Western Balkan Countries. A Focus on the Mediterranean Region Series: Financial and Monetary Policy Studies, 36. Peeters, Marga; Sabri, Nidal; Shahin, Wassim (Eds.). London: Springer Ltd. 215-229.
World Bank (2004). Can intervention work? The Role of Government in SMEs success. Washington, DC: The World Bank.
Žunić-Kovačević, N., Vapa-Tankosić, J., & Lazić, B. (2016). The mechanism of SMEs internationalization towards the EU single market perspective. In D.Rabat, K.Černe and Zenzerović R. (Eds.) European Union Future Perspectives: Innovation, Entrepreneurship and Economic Policy (pp. 43-59). Pula: Juraj Dobrila University of Pula. ISBN 978-953-7320-24-9. UDK 339.13(497:4-6EU).
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).