scholarly journals Economic Crisis and Macro-economic Status of Small and Medium Enterprises

ECONOMICS ◽  
2016 ◽  
Vol 4 (2) ◽  
pp. 9-27
Author(s):  
Zoran Lukić ◽  
Dragan Petrović ◽  
Rankica Marelj
Keyword(s):  
Economic Crisis ◽  
Small And Medium Enterprises ◽  
Economic Status ◽  
Radical Change ◽  
Economic Situation ◽  
Added Value ◽  
Macroeconomic Indicators ◽  
Balkan Region ◽  
Medium Enterprises ◽  
The Eu

Summary Small and medium enterprises comprise an optimal unity with large enterprises. Such approach provides an effective long-term economic structure. In the EU, the number of employees and added value of SMEs grew until 2008, followed by a stagnant trend during the crisis in the EU. As early as 2010, the added value started recovering, while a number of companies and employees stagnated. As for BiH, SMEs revenues dropped in the period from 2008 to 2009, followed by their recovery and growth, while the investments maintained constant decline to the end of the observed period. Macroeconomic indicators do not indicate a radical change of trends from 2008 to 2011. In that period, the EU recorded significant oscillations. Correlation analysis for BiH has shown an interconnection between GDP and industrial production, with SMEs revenues. The ratio of investments and SMEs revenues does not indicate the existence of a correlation. The economic crisis and instability of BiH affect the poor economic situation. BiH underutilizes EU funds for SME development. The EU Programme for SMEs and job creation has failed to demonstrate significant results in Bosnia and Herzegovina and the Balkan region. The economic crisis and instability affect the economic situation in BiH. Stimulus of creating new and expansion of existing SMEs is a prerequisite for economic recovery of the country in times of crisis and in the periods of economic prosperity.

scholarly journals New tools and opportunities in growth and climate friendly greening for small and medium enterprises in the European Union

2015 ◽  
Vol 9 (4) ◽  
pp. 25-31
Author(s):  
Xénia Szanyi-Gyenes ◽  
György Mudri ◽  
Mária Bakosné Böröcz
Keyword(s):  
Economic Growth ◽  
Environmental Sustainability ◽  
Small And Medium Enterprises ◽  
Sustainable Growth ◽  
Added Value ◽  
Easy Access ◽  
The European Union ◽  
Access To Finance ◽  
Medium Enterprises ◽  
The Eu

The role of Small and Medium Enterprises (SMEs) is unquestionable in the European economies, while financial opportunities are still inadequate for them. The more than 20 million SMEs play a significant role in European economic growth, innovation and job creation. According to the latest EC Annual Report , SMEs are accounting for 99% of all non-financial enterprises, employing 88.8 million people and generating almost EUR 3.7 tn in added value for our economy. Despite the fact that there is plenty of EU funding available for these SMEs, for certain reasons these funds hardly reach them. But we have to see that the EU supports SMEs by various way, e.g. by grants, regulatory changes, financial instrument, direct funds. On the other hand, SMEs and decision makers realised that the environmental sustainability has to be attached to the economic growth, therefore more and more tools are available for these enterprises. Over the last few years, public institutions, the market, the financial community and non-governmental associations have explicitly demanded that firms improve their environmental performance. One of the greatest opportunities might lay in the Climate- and Energy Strategy till 2030 as 20% of the EU budget is allocated to climate-related actions, however the easy access to finance is still a key question. Does the EU recognise the actual difficulties? Is there a systemic reason behind the absorption problems? Is the EU creating a more businessfriendly environment for SMEs, facilitating access to finance, stimulates the green and sustainable growth and improving access to new markets? The paper analyses the current European situation of the SMEs and the effectiveness of some new tools, which are specially targeting SMEs. JEL classification: Q18

scholarly journals CORRELATION OF TOTAL GDP AND NUMBER OF SMALL AND MEDIUM ENTERPRISES IN THE EU-28

2021 ◽  
Author(s):  
Mirjana Štaka ◽  
Keyword(s):  
Gross Domestic Product ◽  
Social Role ◽  
Small And Medium Enterprises ◽  
Added Value ◽  
Domestic Product ◽  
Eu Countries ◽  
Medium Enterprises ◽  
The Relationship ◽  
The Eu

Micro, small and medium enterprises play a major role in the country's economic growth and development. The connection and correlation of GDP and the number of small and medium-sized companies represents a key not only economic but also social role of EU countries. This paper seeks to explore small and medium enterprises as an important role in economic growth and development. Micro, small and medium enterprises play a very important role in the economic development of the country, which is the reason for many studies and analyzes. In addition to contributing to gross domestic product creation, they also play a key social role as they reduce unemployment. The aim of this paper is to assess the relationship between the components of gross domestic product (GDP) and the development of small and medium enterprises (SMEs) in the EU-28 in the years 2009-2019. To achieve this goal, we reviewed the literature, presented statistical data that confirm the importance of these companies in economic development, such as: indicator of entrepreneurship (calculated as the number of SME companies per 1000 inhabitants), participation of SMEs in creating added value. We have presented this data for selected EU countries. Material and methods of work will be performed statistical analysis of data collected for SMEs in the EU and thus enable verification of the hypothesis set in the paper. Secondary data downloaded from the Eurostat site will be used. Based on the downloaded data and the application of a simple regression model, a universal and original model will be presented. Before presenting the model, a correlation will be made in order to present the comprehensiveness of the model. The model will be presented in the form of a function, which will have the value of parameters on the basis of which the influence of independent variables on dependent ones will be determined. The results and conclusions are presented at the end of the paper. The results of the research confirm the theoretical significance and role of small and medium enterprises, as well as the need for their internalization and growth into global market leaders. If the unemployment rate increases by 1 unit (if one person loses his job) in the EU, it will cause a decrease in total domestic value (GDP) by 0.509 units. Every new unemployed worker will cost the EU so much unproduced output and new added value. Assuming that there is no unemployment in the EU, ie that the rate is equal to 0, the EU would produce a gross domestic value of 16,135 euros (note: only the impact and the relationship between the unemployment rate and GDP is taken into account here). Thus, it is clear how much costs and effects unemployment has on the gross domestic product and economic policy of EU countries.

scholarly journals Factors behind trade credit financing of SMEs in Croatia

2020 ◽  
Vol 8 (1) ◽  
pp. 59-76
Author(s):  
Sandra Pepur ◽  
Dujam Kovač ◽  
Marijana Ćurak
Keyword(s):  
Trade Credit ◽  
Small And Medium Enterprises ◽  
Added Value ◽  
Knowledge Generation ◽  
External Financing ◽  
The European Union ◽  
East European ◽  
Funding Sources ◽  
Credit Financing ◽  
Medium Enterprises

Small and medium enterprises (SMEs) contribute to the national economy in terms of employment, added value, knowledge generation, and innovation. However, their potential and in the case of economic downturns even their survival is affected by the difficulties in their access to external financing under acceptable terms and adequate timing and amount. In the case of asymmetric information problems, which make SMEs more sensitive to financial market imperfections, trade credit can be a valuable source of financing. In the European Union, trade credit is among the most relevant external funding sources and it is among the most important alternatives to financial intermediaries’ financing. However, there are substantial differences between the countries with respect to availability and use of trade credit. Therefore, this research examines determining (company-specific and country-specific) factors behind the use of trade credit as a financing source in Croatia. The empirical analysis is based on the data for 1,225 SMEs operating in Croatia in the period from 2008 to 2017 and is done using the panel data methodology. The findings confirm that firms’ characteristics, as well as the characteristics of financial, macroeconomic and legal environment in which the firms operate, influence the use of trade credit in SMEs in Croatia. The paper contributes to relatively scarce empirical evidence on the determinants of trade credit use by SMEs in South-East European countries.

scholarly journals Innovative Activity of Small and Medium- Sized Enterprises

2021 ◽  
Vol 27 (4) ◽  
pp. 580-608
Keyword(s):  
Comparative Analysis ◽  
Small And Medium Enterprises ◽  
Added Value ◽  
Innovation Activity ◽  
Processing Industry ◽  
Innovative Performance ◽  
Secondary Information ◽  
Medium Enterprises ◽  
Published Research ◽  
Stimulation Of

The importance of small and medium enterprises (SMEs) for the economy of our country is constantly growing. In 2018, they made up 99.8% of the enterprises in the country. They employ 75.7% of all employees in the economy and they provide 65.3% of the country‘s added value. The innovation activity of SMEs largely determines the overall innovative performance of our country, and therefore the pace of its development. It is increasingly realized that the stimulation of innovation in SMEs is an important mechanism for achieving competitiveness and economic success not only of individual enterprises but also of our country as a whole. Given this, the first purpose of this study is to perform a comparative analysis of the innovation activity of Bulgarian SMEs compared to the other EU countries and to determine the main areas of achievement and lag. The comparative analysis was performed on the basis of data from official national, European and world sources, as well as from published research results on this issue. The second purpose is to present the results of an empirical study of the innovation activity of a sample of Bulgarian SMEs, conducted by the authors. The survey covers 100 micro, small and medium-sized enterprises from different sectors of the processing industry and its purpose is to check, supplement and clarify secondary information studied for the first stage.

scholarly journals Sektor MŚP jako potencjalny odbiorca Funduszu Rozwoju Lokalnego Eksportu na przykładzie województwa podkarpackiego

2011 ◽  
Vol 7 ◽  
pp. 264-287
Author(s):  
Paweł Czapliński
Keyword(s):  
Small And Medium Enterprises ◽  
Medium Enterprises ◽  
The Eu

This article is an attempt to identify the needs of small and medium enterprises of Podkarpackie voivodeship in the scope of export support as well as establishing and developing economic contacts with subjects from the EU. As it is suggested by the conducted research, there is a considerable need to the use of export instruments and activities. Unfortunately, their implementation is faced with numerous limitations both on the side of enterprises themselves and their environment. It needs to be emphasised, however, that it requires changes not only at the administrative and legal level, but also at mental-related one.

scholarly journals Kenaikan Omzet UMKM Makanan dan Minuman di Kota Bogor Pasca Sertifikasi Halal

Al-Muzara ah ◽  
2020 ◽  
Vol 8 (2) ◽  
pp. 109-127
Author(s):  
Hana Khairunnisa ◽  
Deni Lubis ◽  
Qoriatul Hasanah
Keyword(s):  
Small And Medium Enterprises ◽  
Descriptive Analysis ◽  
Linear Regression Analysis ◽  
Multiple Linear Regression Analysis ◽  
Work Hours ◽  
Added Value ◽  
Total Revenue ◽  
Food And Beverage ◽  
Before And After ◽  
Medium Enterprises

Halal certification is one of the company’s strategy that aims to retain their consumers and become a difference with competitors and to give added value for product. Most of the researchers have proved that halal certificates affect big companies’ total revenue. However, there are not many studies that have proved that halal certificate would affect the total revenue of micro, small, and medium enterprises (MSMEs), especially in Bogor City. This research aims to determine the characteristics of MSMEs’ owners and their business, analyze the changes of MSME’s total revenue before and after owning a halal certificate, and the factors that affect MSMEs’ total revenue after owning a halal certificate. The questionnaire data were collected through an interview with 40 food and beverage MSMEs’ owners who have halal certificates in Bogor City. This research uses descriptive analysis, paired sample t-test, and multiple linear regression analysis as the analysis methods. Results based on this research showed that there was a difference in the total revenue of MSMEs before and after owning a halal certificate. The factors that have positive and significant effects of MSMEs’ total revenue influences are capital, work hours, length of business, and a dummy of promotion.

scholarly journals INNOVATION CLUSTERS AS AN ASSOCIATION MODEL OF THE SMALL AND MEDIUM-SIZED ENTERPRISES: THE CONTEXT OF REGIONAL DEVELOPMENT

2020 ◽  
Author(s):  
Ivana Kostadinović ◽  
◽  
Sunčica Stanković ◽  
Keyword(s):  
Regional Development ◽  
Small And Medium Enterprises ◽  
Empirical Studies ◽  
Added Value ◽  
Western Balkans ◽  
Services Sector ◽  
High Level ◽  
Medium Enterprises ◽  
Innovation Clusters

Numerous empirical studies have long been indicated the importance of business infrastructure for economic and regional development. Ensuring long-term economic growth, as well as the creation and development of small and medium enterprises (SMEs), as key drivers of the development of modern economies, requires a high level of efficiency and flexibility of business infrastructure. In the Western Balkans, the absence of a coherent business infrastructure network is the biggest obstacle to the rapid growth of their economies. For this reason, the activities of the Western Balkan governments in the future should be aimed at developing a network of business infrastructure in order to increase the share of the knowledge and services sector with high added value in the economic structure. This paper aims to point out the role of innovative clusters as a model of associating SMEs in the context of regional development.

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