ACCESS TO FINANCE FOR MICRO, SMALL AND MEDIUM BUSINESS UNITS IN SERBIAN AGRIBUSINESS
DOI:
https://doi.org/10.5937/ekoPolj1604219SKeywords:
Agribusiness, Micro, small and medium business units, FinancingAbstract
Micro, small and medium business units contribute to development of agribusiness only if adequate fnancial resources for founding and development are given. This paper analyzes the possibilities of fnancing micro, small and medium legal entities in agribusiness in Serbia, compared to large enterprises. Empirical research included a survey comprising 119 agribusiness units, grouped into three categories dependent on their size. The aim was to confrm that there are substantial differences between units of different sizes, concerning possibilities of accessing bank loans and concerning the process of evaluation of conditions for credit approval. Also, aim was to determine differences between the uses of necessary key economic measures in agribusiness. Results showed signifcant differences between each group of business units for the majority of the observed parameters. Consequently the small and medium-sized enterprises (SMEs) sector and especially entrepreneurs and farmers (micro units) only have limited access to fnancial resources and more fnancing costs compared to large enterprises.
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References
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2. Ayyagari, M., Kunt, A.D., Maksimovic, V. (2008): How Important Are Financing Constraints? The Role of Finance in the Business Environment, The World Bank Economic Review, vol. 22, no. 3, pp. 483–516, (available at http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.613.3442&rep=rep1&type=pdf ), (date of access Dec. 12, 2015)
3. Birovljev, J., Davidović, M., Petrović, R. (2011): Kreditna podrška malim I srednjim preduzećima u Srbiji, Ekonomika preduzeća, Savez ekonomista Srbije, vol. 59, no. 5-6, pp. 288-296, (available at http://scindeks-clanci.ceon.rs/data/pdf/0353-443X/2011/0353-443X1106288B.pdf ), (date of access Dec. 14, 2015)
4. Canton, E., Grilo, I., Monteagudo, J., Zwan, P. (2013): Perceived credit constraints in the European Union, Small Business Economics, vol. 41, no. 3, pp. 701–715, (available at http://www.ecb.europa.eu/events/pdf/conferences/ws_surveydata/Session_1paper_Canton_Grilo_Monteagudo.pdf ), (date of access Dec. 12, 2015)
5. Casu, B., Girardone, C., Molyneux, P. (2006): Introduction to banking, Pearson Education Limited, Prentice Hall, Upper Saddle River, USA
6. Ceranić, S., Maletić, R., Janković Šoja, S. (2009): Small and medium size enterprises as support to development of agribusiness of Republic of Serbia, 113th EAAE Seminar "The role of knowledge, innovation and human capital in multifunctional agriculture and territorial rural development", Belgrade, (available at http://ageconsearch.umn.edu/handle/57345 ), (date of access Dec. 12, 2015)
7. Ciaian, P., Falkowski, J., Kancs, dA. (2010): Access to Credit, Factor Allocation and Farm Productivity: Evidence from the CEE Transition Economies, 114th Seminar of the European Association of Agricultural Economists (EAAE), Proceedings, Berlin, Germany, 1-35. (available at http://ageconsearch.umn.edu/bitstream/61347/2/Ciaian%20Falkowski%20Kancs%2061347.pdf ), (date of access Dec. 14, 2015)
8. Ciaian, P., Pokrivcak, J., Szegenyova, K. (2011): Do Agricultural Subsidies Crowd-out or Stimulate Rural Credit Market Institutions? The Case of CAP Payments, AAEA and NAREA Joint Annual Meeting, Pittsburgh, USA, 1-27, (available at http://ageconsearch.umn.edu/bitstream/103085/2/Paper.pdf), (date of access Dec. 12, 2015)
9. Demirgüç-Kunt, A., Beck, T., Honohan, P. (2008): Finance for all? Policies and pitfalls in expanding acces,The World Bank, Washington DC, (available at http://siteresources.worldbank.org/INTRES/Resources/ 469232132156870-2932/Final-brief-2-english.pdf), (date of access Jan. 12, 2016)
10. Down, S. (2010): Enterprise, Entrepreneurship and Small Business, Sage Publications Ltd, New York, USA
11. Erić, D., Beraha, I., Đuričin, S., Kecman, N., Jakišić, B. (2012): Finansiranje malih i srednjih preduzeća u Srbiji, Institut ekonomskih nauka i Privredna komora Srbije, Beograd, (available at http://www.pks.rs/SADRZAJ-Files/Biro%20za%20saradnju%20sa%20EU/Finansiranje%20MSP%20u%20Srbiji.pdf), (date of access Feb. 2, 2016)
12. FAO (2016): Rural Infrastructure and Agro-Industries Division, Agribusiness Development – The importance of agribusiness, UN, New York, (available at www.fao.org/ag/ags/agribusiness-development/en) (date of access Jan. 12, 2016)
13. Hanedar, E.Y., Broccardo, E., Bazzana, F. (2014): Collateral requirements of SMEs: The evidence from less-developed countries, Journal of banking & fnance, vol. 38 no. 1, pp. 106-121, (available at http://web.a. ebscohost.com /ehost/), (date of access Jan. 12, 2016)
14. Hoflich, P. (2011). Banks at Risk, Global Best Practices in an Age of Turbulence, John Wiley & Sons, Singapore
15. Jaćimović, D., Rakićević, Z. Omerbegović-Bijelović, J. (2014): One Approach to Risk Management in SMEs Banking Required and Realized Support to Serbian Agricultural Farms at the Beginning of the XXI Century, Management, vol. 71, no. 1, pp. 49-55, (available at http://www.management. fon.rs/management/e_management_71_english_05.pdf), (date of access Jan. 12, 2016)
16. Offcial Gazette of Republic of Serbia (2013): Law on Accounting, Published in the Službeni glasnik RS, No. 62/13 of 16 July 2013.
17. Maletić, R., Ceranić, S. (2010): Small and medium enterprises as development factor of agribusiness in Republic of Serbia, Abstract, Applied Studies in agribusiness and commerce, vol. 4, no. 3-4, pp. 45-49, (available at http://apstract.net/index.php/2015/09/30/small-and-medium-enterprises-asdevelopment-factor-of-agribusiness-in-republic-of-serbia/, Hungary), (date of access Jan. 12, 2016)
18. Maletić, R., Popović, B., Paunović, T. (2014): Regional aspect of Agribusiness SMEs Development in Serbia - opportunity to reduce unemployment,Teme, vol. 39, no. 4, pp. 1445-1456, (available at http://teme2.junis.ni.ac.rs/public/journals/1/previousissues/teme4-2014/teme 204-2014-03.pdf ), (date of access Feb. 2, 2016)
19. Malhotra, M., Chen, Y., Criscuolo, A., Fan, Q., Hamel, I., Savchenko, Y. (2006): Expanding Access to Finance: Good Practices and Policies for Micro, Small, and Medium Enterprises, World Bank, USA 20. Milošević, N., Barjaktarović Rakočević, S., Milanović, N. (2014): One Approach to Risk Management in SMEs Banking, Management, vol. 73, no. 1, pp. 59-67, (available at http://www.management.fon.rs/management/ e_management_73_english_07.pdf), (date of access Feb. 2, 2016)
21. Ministartsvo privrede Republike Srbije (2016): Mala i srednja preduzeća, Taken from www.privreda.gov.rs/mala-i-srednja-prduzeca-2/ (date of access Febr. 18, 2016)
22. National Agency for Regional Development – NARD (2013): Report on the conditions, needs and problems of SMEs in Serbia, Belgrade
23. Popović, B. (2009): Doprinos malih i srednjih preduzeća razvoju agrobiznisa Republike Srbije, Journal of Agricultural Sciences, vol. 54, no. 1, pp. 63-80, (available at http://joas.agrif.bg.ac.rs/sites/joas.agrif.bg.ac.rs/fles/article/pdf/252-1450-81090901063p.pdf), (date of access Feb. 2, 2016)
24. Schlesinger, W., Unsal, F., Zaman, M.R. (1987): Attributes of Sound Banking as Perceived by Small Businesses: Results of a Survey, Journal of Small Business Management, vol. 25, no 4, pp. 47-54, (available at https://www.questia.com/library/journal/1G1-6164811), (date of access Jan. 12, 2016)
25. Stokes, D., Wilson, N. (2010): Small Business Management and Entrepreneurship, Cengage Learning EMEA, Hampshire, England
26. Offcial Gazette of the Republic of Serbia (2014): The Strategy of Agriculture and Rural Development of the Republic of Serbia for the period 2014 -2024, No. 85/2014
27. Offcial Gazette of the Republic of Serbia (2015): The strategy for support to development of SMEs, entrepreneurship and competitiveness for the period from 2015 to 2020, no. 35/2015
28. Ožegovič, L., Pavlović, N. (2012): Menadžment malih i srednjih preduzeća – Nosilac razvoja privrede, Škola biznisa, no. 1, Visoka poslovna škola strukovnih studija, Novi Sad, pp. 74-84
29. Popović, V., Grujić, B. (2015): Agricultural subsidies in the budget of the Republic of Serbia, Economics of Agriculture, vol. 62, no. 2, Belgrade, pp. 513-526, (available at http://scindeks-clanci.ceon.rs/data/pdf/0352-3462/2015/0352-34621502513P.pdf), (date of access Febr. 18, 2016)
30. Savić, B., Vasiljević, Z., Popović, N. (2016): The role and importance of strategic budgeting for competitiveness of the agribusiness supply chain, Economics of Agriculture, vol. 63, no. 1, Belgrade, pp. 295-312, available at http://www.ea.bg.ac.rs/images/Arhiva/2016/Broj%201/19%20EP%201%202016-19.pdf), (date of access Febr. 18, 2016)
31. Serbian Agribusiness Project (SAP), (available at http://dai.com/our-work/projects/serbia%E2%80%94serbian-agribusiness-project-sap) (date of access Jan. 11, 2016)
32. USAID (2012): Financing the growth of small and medium enterprises, Business enabling project, Belgrade, (available at http://www.bep.rs/documents/c3/FINANCING%20THE%20GROWTH%20OF%20SME%20-%20Critical%20Issues%20and%20Recommendations.pdf)
33. Van Caneghem, T., Van Campenhout, G. (2012): Quantity and quality of information and SME fnancial structure, Small Business Economics, vol. 39, no. 2, pp. 341–358, (available at http://web.a.ebscohost.com/ehost), (date of access Febr. 18, 2016)
34. Van Horne, J., Wachowicz, J. (2007): Fundamentals of fnancial management, Data status, Belgrade
35. Veselinović, B., Drobnjaković, M. (2014): Qualitative and quantitative analysis of micro and macro aspects of agricultural fnance, Ekonomika poljoprivrede, vol. 61, no. 3, pp. 771-787, (available at http://ageconsearch.umn.edu/bitstream/186525/2/15%20EP%203%202014.pdf ), (date of access Febr. 18, 2016)
36. World Economic Forum (2016): The Global Competitiveness Report, 2015/2016, (available at http://www3.weforum.org/docs/gcr/2015-2016/ Global_Competitiveness_Report_2015-2016.pdf), (date of access Jan. 9, 2016)
37. World Bank Group. (2016): Enabling the business of agriculture 2016,Comparing regulatory good practices, Washington, (available at http://eba.orldbank.org/~/media/WBG/AgriBusiness/Documents/Reports/2016/EBA16-Full-Report.pdf), (date of access Feb. 2, 2016)
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Published
2016-12-31
How to Cite
Sedlak, O., Jovin, S., Pejanović, R., Ćirić, Z., & Eremić Đođić, J. (2016). ACCESS TO FINANCE FOR MICRO, SMALL AND MEDIUM BUSINESS UNITS IN SERBIAN AGRIBUSINESS. Economics of Agriculture, 63(4), 1219–1235. https://doi.org/10.5937/ekoPolj1604219S
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