Financing and Success/Performance of Small Businesses in Serbia

  • Aleksandra Stoiljković University of Novi Sad, Faculty of Economics, Subotica, Serbia
  • Slobodan Marić University of Novi Sad, Faculty of Economics,Subotica, Serbia

Abstract

Financing represents a general problem for small enterprises with numerous constraints. Defining the problem of research will eliminate the answer to the following research question: Does the financing of small enterprises, based on the volume and structure, determine business performance, i.e., success? As well as the overall problem orientation of this research, motivation is related to the analysis of business performance, i.e., success of small enterprises in relation to the nature of financing small businesses. It has to be defined 'The idea is to identify and define the role of financing as a factor of competitiveness and performance in small business operations, as the general objective of the paper. Lack of financial resources is one of the most common causes of failure of small enterprises. The main hypothesis is: There is a significant correlation between the volume and structure of sources of financing and the performance of small enterprises. Data: Secondary data from the reference databases (Serbian Business Registers Agency) for 2018, which include 150 cases, serve as the relevant basis for the realization of the research within the adequately set area of the research. Tools will be used to study the relationship, i.e., connectivity of selected research variables based on regression analysis in the frame of parametric quantitative procedures. Business performance variables, measured by indicators of profit and revenue growth, with variables of volume and structure of financing as is equity and % of equity as a structure; measures like time in business, total revenue, total number of employees, represent the size and age of business. Findings point to the conclusion that the volume of financing as well as the participation of own capital contribute to the business performance of small enterprises, which is measured by the most relevant variables in terms of profit and total revenue. Contribution: Based on the facts presented, we can say that all research assumptions have been confirmed, and the presented research results are significant and representative for future managerial practice of small businesses. The key contribution of this research is identification of an optimal financing structure for business performance of small enterprises.

Author Biographies

Aleksandra Stoiljković, University of Novi Sad, Faculty of Economics, Subotica, Serbia

Aleksandra Stoiljković is a Teaching Assistant at the Department of Management, Faculty of Economics in Subotica, University of Novi Sad, Republic of Serbia. She teaches Business Economics and Economics in Tourism, at Undergraduate Studies and Cost Management and Modeling the Development of Tourism and Hospitality, at Master's Studies. She is a PhD student at the Faculty of Economics and the author of numerous papers in the field of Business Management and Economics in Tourism.

Slobodan Marić, University of Novi Sad, Faculty of Economics,Subotica, Serbia

Slobodan Marić is an Assistant professor at the Department of Management, Faculty of Economics Subotica, University of Novi Sad, Republic of Serbia, where he teaches bachelor’s courses in Principles of Management and master’s courses Performance Management and Contemporary Management. He has taken part in many national and international scientific and research projects. In addition, he is the author and coauthor of numerous scientific and professional papers in the fields of management, performance management, entrepreneurship and project management.

 

Published
2020-12-07
How to Cite
Stoiljković, A., & Marić, S. (2020). Financing and Success/Performance of Small Businesses in Serbia. Management:Journal Of Sustainable Business And Management Solutions In Emerging Economies, . doi:10.7595/management.fon.2020.0022
Section
Articles