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 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.

Conservation servitudes in South Africa

2020 ◽  
Vol 26 ◽  
pp. 105-133
Author(s):  
Marthán Theart ◽  
Kirstin Meiring
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
Developing Countries ◽  
Small And Medium Enterprises ◽  
Access To Finance ◽  
Insolvency Law ◽  
The Social ◽  
Legal Challenges ◽  
African Context ◽  
Medium Enterprises

Small and Medium Enterprises (SMEs) play a significant role in the economy of developing countries. Although SMEs contribute to economic growth, they still struggle with access to finance and cash flow constraints. The coronavirus (COVID-19) pandemic worsened this situation, making it necessary for countries to develop rescue regimes suitable for financially distressed SMEs. Focusing on Nigeria and Kenya – which represent the largest economies in West Africa and East Africa respectively – this paper critically sheds light on the socio-legal challenges posed by extant insolvency law regimes in both countries and their unsuitability for driving SME rescue. As a conversation starter in the African context, the authors identify transplanted concepts and structures which make SME rescue a futility, in the light of local circumstances, while proposing solutions tailored to the social milieu of both countries.

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 Exploring the Impact of Inflation and External Debt on Economic Growth in Morocco: An Empirical Investigation with an ARDL Approach

2021 ◽  
Vol 11 (11) ◽  
pp. 894-907
Author(s):  
Sara EL ABOUDI ◽  
Imad KHANCHAOUI
Keyword(s):  
Economic Growth ◽  
Interest Rates ◽  
Economic Activity ◽  
Small And Medium Enterprises ◽  
External Debt ◽  
Added Value ◽  
Economic Competitiveness ◽  
Negative Effect ◽  
Medium Enterprises ◽  
The Impact

This article seeks to empirically assess the effect of inflation and external debt on economic growth in Morocco. The estimates cover the period from 1985 to 2019. The results from the ARDL model show that external debt negatively influences the country's growth in the short and long terms. Due to its direct effect, inflation slows down economic activity and leads to lower GDP growth. The econometric estimate indicates that the low level of inflation leads to difficulties in repaying debt and, consequently, reduced economic growth. Low inflation also hurts economic competitiveness among small and medium enterprises (SMEs). Although the inflation rate is lower than the interest rates, it reduces the profit margins of companies and leads to lower investment. The negative effect on economic competitiveness leads to decreased sectoral added value, reducing future economic growth rates. Based on the results, two main measures are proposed to mitigate the negative effect of inflation and debt on economic growth. First, we must develop better institutional and governance quality. The latter allows debt funds to be well spent on non-rent-producing sectors capable of reviving the Moroccan economy. Second, we have to look for good inflation, in other words, inflation that stimulates economic activity without creating economic distortions.

scholarly journals Small and medium enterprises and eco-innovations: empirical study of Slovak SME´s

2019 ◽  
pp. 89-97 ◽  
Author(s):  
Ľubica Lesakova
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Circular Economy ◽  
Small And Medium Enterprises ◽  
Renewable Energy Sources ◽  
Well Being ◽  
Positive Contribution ◽  
Innovation Activities ◽  
Medium Enterprises ◽  
The Eu

Eco-innovation and green technologies are key to Europe´s future and they are at the heart of the European Union (EU) policies. The EU´s economic prosperity and well being are linked to its natural environment and the global demand for renewable energy and resource-efficient solutions will be a source of new jobs and economic growth in the years to come. As the numerous practical examples from industry demonstrate, eco-innovation is a powerful instrument that combines reduced negative impact on the environment with a positive impact on the economy and society. Eco-innovation call attention to the positive contribution that the small and medium enterprises can make to sustainable development and a competitive economy. To step towards sustainable economic growth, there is a need for much more eco-innovations to appear in small and medium enterprises (SMEs). The aim of the paper is to present the results of empirical research aimed at SME´s involvement in eco-innovation activities in Slovakia and to compare them with the EU 28 average. Our analysis is aimed at five eco-innovation activities contributing deeply to the circular economy. That is a) waste recycling and minimizing waste generation; b) re-planned energy usage to minimize consumption; c) redesigning products and services to minimize the use of materials or using recycled materials; d) changes to the use of water to minimize consumption and to maximize water re-usage; e) usage of renewable energy sources. Identified will be the actual and perceived issues (problems, difficulties) encountered by Slovak SMEs with regard to undertaking eco-innovations. Based on the research results formulated are the implications for SMEs managers and policymakers in Slovakia concerned with the SME´s involvement in ecoinnovation. Our study is qualitative and descriptive in nature and most of the data is based on secondary sources. The data used to assess the SME´s involvement in eco-innovation activities come from the survey commissioned by the EC in the year 2016 with the aim to explore SME´s activities in relation to the circular economy (including the ecoinnovation activities) in the period of years 2014-2016. As to the Slovakia 383 SMEs operating in manufacturing, services and in the industry sector has been interviewed. The methods used in the paper are the methods of causal analysis, deduction, abstraction, comparison as well as synthesis.

scholarly journals Support of local entrepreneurship: An empirical investigation for Serres-Greece

Spatium ◽  
2013 ◽  
pp. 16-21 ◽  
Author(s):  
Chrysanthi Balomenou ◽  
Marianthi Maliari
Keyword(s):  
Empirical Investigation ◽  
Small And Medium Enterprises ◽  
Local Development ◽  
The Internet ◽  
The European Union ◽  
Greek Language ◽  
Moral Hazards ◽  
Medium Enterprises ◽  
The Eu

This paper is divided into two parts, one theoretical and one empirical. The research deals with entrepreneurs that received loans from National Fund for Entrepreneurship and Development (ETEAN in Greek language). ETEAN provided enterprises with non interest or low interest loans based on state guarantees. The main objective of this research is to examine the project\'s effectiveness and its contribution into local development on Regional Unity of Serres, Central Macedonia, Greece. The first part is divided into two sections. A comparative analysis of guarantees to small and medium enterprises (SME?s) is presented in the first part referring to the European Union and in the second part to Greece. Particularly, in the first section of our paper presented data concerning guarantees provided in the EU. At the second section presented data which indicate the role of ETEAN?s programs into the contribution of local development in Greece and the moral hazards due to state provided guarantees. Furthermore, obstacles that entrepreneurs face when they applied for guarantee loans are analyzed in this part. Our data were extracted during the last three years by the extensive use of web links on the internet. Most data were taken from the websites of above mentioned ETEAN, the Pan-European Gateway to Business and Innovation Financing, the Gateway to European Research and Development and B.I.S. At the second part presented the results of our research based on 200 entrepreneurs in Serres who receive loans from ETEAN. The results analyzed with the use of descriptive statistical methods and correlations. It is noticeable that businessmen?s answers are similar to those deduced from the results of the researches that have been referred to in bibliography. In the final part of this paper the main conclusion is pointed out and that is that those programs which provide enterprises low interest or non interest loans support local development.

scholarly journals COMMUNITY DEVELOPMENT UMKM EKS LOKALISASI DOLLY MELALUI DIGITAL PLATFORM DALAM MENGHADAPI COVID-19

2021 ◽  
Vol 5 (1) ◽  
pp. 221
Author(s):  
Putu Aditya Ferdian
Keyword(s):  
Economic Growth ◽  
Community Development ◽  
Small And Medium Enterprises ◽  
City Government ◽  
Added Value ◽  
Creative Economy ◽  
Business Sector ◽  
Local Society ◽  
Digital Platforms ◽  
Medium Enterprises

The closure of Dolly's localization in 2014 had a significant impact on the economy of the surrounding community. Where Dolly is known as the largest prostitution place in Southeast Asia, which is in Putat Jaya, Sawahan District, City of Surabaya. The solution that has been carried out by the Surabaya City Government is to provide training for MSMEs (Micro, Small and Medium Enterprises), in order to create economic growth and opportunities for new creative businesses in local society. To strengthen the MSMEs sector that has been initiated by the Surabaya City Government, our team wants to provide an added value to these MSMEs by carrying out capacity building and a touch of digital platforms to develop the community business sector. So, existing MSME products can be promoted according to the correct and appropriate techniques. This aims to create a creative economy that can be independent from localization activities and can survive the Covid-19 pandemic.

scholarly journals EU Policy Towards Small and Medium Enterprises in the Eastern Partnership Countries as an Instrument of Political Influence

2021 ◽  
Vol 102 (2) ◽  
pp. 28-39
Author(s):  
Vyacheslav Sutyrin ◽  
Keyword(s):  
Soft Power ◽  
Small And Medium Enterprises ◽  
Political Influence ◽  
The European Union ◽  
Eastern Partnership ◽  
Eastern Partnership Countries ◽  
Eu Policies ◽  
Medium Enterprises ◽  
Constructivist Approaches ◽  
The Eu

The paper deals with the problem of investigating strategies and experience of the European Union which it employs to strengthen its political influence in the Eastern Partnership countries by means of working with business sector. The author analyses statistical data, official EU position and programme documents, funding data. Institutional and constructivist approaches are employed to study the processes and results of EU policies. The study covers the period between 2009 and 2020, and investigates aims, instruments, funding, KPI of the EU in dealing with business communities of Eastern Partnership countries. The author gives an overview of a range of opinions in expert discussions concerning the humanitarian influence of the EU. The conclusion is drawn that the scale and forms of EU interventions and funding for particular country are conditioned by the level of political relationship with its government. The bulk of funding (more than 60%) is directed not to loans or subsidies to SMEs, but to humanitarian (i.e. “soft power”) projects focusing of particular groups – entrepreneurs, active youth, regions, officials, etc. EU humanitarian penetration into focus countries of EP creates an infrastructure, social organizations and groups, which could be utilized to political ends.

Cash Waqf Crowdfunding Model for SMEs

2020 ◽  
pp. 338-353
Author(s):  
Rashedul Hasan ◽  
Abu Umar Faruq Ahmad
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Small And Medium Enterprises ◽  
Vital Role ◽  
Islamic Finance ◽  
Access To Finance ◽  
Relevant Publication ◽  
Medium Enterprises ◽  
Structured Literature Review ◽  
Sme Financing

Small and Medium Enterprises (SMEs) play a vital role in the economic growth. However, the industry has been facing challenges due to lack of access to finance among entrepreneurs. This chapter explores alternative financing platforms for SMEs and proposes specific solutions to the credit risk of SMEs. Authors used a structured literature review approach to analyse relevant publication to provide evidence on the application of cash Waqf as a viable source of Islamic finance for the SME sector. The donation-based cash Waqf model for SME financing is developed under the lens of stakeholder theory and Maqasid al-Shari'ah. The model is expected to provide greater insight to Waqf institutions on their role to operationalise the conceptual model in fostering the growth of SMEs and change the perception of stakeholders about the dynamics and potential of cash Waqf in economic development.

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