The Project „Growth Opportunities for Small and Medium Enterprises and Missed Opportunities in Lending“ was funded by the USAID Project for Better Business Conditions and lasted from July 2013 to October 2014. The purpose of this project is to encourage banks and other stakeholders to find procedures and other financial models that would better suit the SME sector by presenting them with the missed opportunities of existing practices. Furthermore, it is necessary to raise awareness that current bank lending practices miss the opportunity to generate profit and foster the growth of small and medium-sized enterprises, which could be achieved through research on the SME market and communication with banks. Therefore, for this purpose, two round tables were organized at the National Bank of Serbia. The first round table was held on June 19, and the second on October 7, 2014.
The expansion and development of the SME sector is both an opportunity and a necessity for the Serbian economy. Serbia has a few large companies, but they cannot be the engine of growth that is necessary for the country to progress further. Also, Serbia cannot expect foreign investors to come in large numbers and thus stimulate economic growth, as happened in some transition countries before they became members of the European Union. The first and necessary condition that will enable the SME sector to become a major part of progressive, globally competitive sectors, to generate a large number of jobs and potential income for its stakeholders, are government and financial institution policies tailored to the SME sector. Good cooperation between SMEs and the financial sector, primarily banks, is extremely important to achieve and maintain economic growth. In the case of Serbia, increasing the access of small and medium-sized enterprises to funding sources is likely more important to ensure than providing a more stable environment and an environment conducive to entrepreneurial development. Nevertheless, it is generally known that companies in Serbia are highly dependent on their own sources of financing, which indicates that there is significant room for improvement in banking finance in the country.
The report is available in English only Report – „Growth Opportunities for Small and Medium Enterprises and Missed Opportunities in Lending“
