FINANCING OF SMALL AND MEDIUM ENTERPRISES – CASE OF MACEDONIA

Year 2016, Volume: 5 , 371 - 377, 01.09.2016

Nexhbi Veseli Vjollca Hasani Teuta Veseli

Abstract

This
paper is prepared in a clear structure, in order to clarify in details
microfinance, as a method for SMEs in accessing financing sources. At the
beginning microfinance has been developed as an opportunity to help poor people
lift themselves out of poverty. The most important thing is that microfinance
helps people to open new businesses and with that improve economic and social
condition of the society. It is done knowing the great need for access to
financial resources, and also for other ways of support, either informal or
nonfinancial methods. In this study, the importance is given to the development
of microfinance in Macedonia, it is about the stages that have been performed
and the results so far achieved. Knowing the methods of financing SMEs in other
countries, the main issues that we have analyzed are the sources and methods of
financing SMEs in Macedonia. In order to make the evaluation of these factors,
we have used regression analysis on three variables.Finally there are presented
the results obtained from empirical analysis, where we have analyzed the
amounts of credits allocated to SMEs, the number of active enterprises, and the
change of interest rates for SME loans, all these are made ​​for a period from
2004 - 2012 (divided into quartiles). The results clarify the impact of credits
and interest rates on the existence of SMEs and the opening of new enterprises
in Macedonia. To our bad luck, the obtained results do not match with the results
of other countries, while the reason is explained at the end of the study.

Keywords

Microfinance, Small and Medium Enterprises (SME), lending, banks, business support agency

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