Unlike most European countries, Serbia still relies exclusively on commercial banks as sources of finance for companies. Micro, small and medium enterprises (MSMEs) and a large number of entrepreneurs make up the majority of business entities in our economy and they are very varied. In addition to the size, they also vary in age, the degree of business development, the type of activity, scope, reach, industrial sector etc. This variety also leads to different financial needs of MSMEs – the type of financing, the amounts, the duration, security requirements, repayment plans, the CCIS says.
Sometimes, all these needs can be met through a suitable combination of financing instruments alone, explains Tamara Dundjerovic, the head of the Center for Programs of Support to the Economy and MSMEs at the CCIS.
Within the structure of the financial sector of Serbia, banks make up over 92%, whereas, in Europe, according to the European Commission, the banks' participation in the financial sector is 70%.
– Special attention should be paid to the possibilities of financing while taking into account the specific needs of various industries and the considerable difference between the financing of innovative and technologically advanced MSMEs and those in the traditional industries. The recommendation is certainly to consider the implementation of a more flexible normative framework and the possibilities for the operations of non-banking institutions – says the CCIS representative.
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