Microfinancing in SMEs Development, Evidence from Serbia

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Vladan Kovačević
Milan Beslac


SMEs constitute the backbone of entrepreneurship in the EU, as well as in Sough Eastern countries, as Serbia is, irrespective of national boundaries. From all enterprises active in the non-financial business sector in the European Union and in Serbia over 99 % are SMEs, but more than 92% of the total business sector consists of micro enterprises, which employ fewer than 10 persons. The ability of a financial system to reach these small entities is crucial for the achievement of general socio-economic improvement. Based on data of EU Craft and SME barometer (UEAPME), National Bank of Serbia, interviews of micro enterprises, EMN survey report, in the paper are discussed issues of the practice of micro financing and lenders experience, as well as the micro- financial services demand of specific target groups: small enterprises, entrepreneurs, small farmers, social enterprises, and supply potentials, and typical providers. The contribution of the paper  are assessments on  potential of the Serbian banking market, especially when it comes to micro-businesses and farmers in the rural areas which are underserved by other banks, and suggested essentials for a successful further market building in the purpose of SMEs development.

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Part I. Case Studies of Women Entrepreneurs


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