Financing of the SME sector in Serbia: Opportunities and limitations

Small and medium-sized enterprise (SME) sector has become a highly significant segment of the modern economy in both developed and developing countries. This sector is a major creator of new jobs, innovations and technological advancements, earning its place in the development strategies of individual countries and regional associations, including the EU. In its economic policy, the Republic of Serbia assigns considerable importance to this sector to enhance the competitiveness of its economy and to access developed international markets. However, due to their small size, enterprises in this sector face significant challenges, primarily limited opportunities for financing their growth and development. This paper addresses the financing possibilities for the SME sector, exploring options such as commercial bank loans, capital market financing and access to investment loans and credits. The research presents findings based on a sample of 127 small and medium-sized enterprises, focusing on the opportunities and challenges these businesses encounter in securing funding for their operations.