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Ekonomika preduzeća
2018, vol. 66, iss. 1-2, pp. 121-136
article language: English
document type: Original Scientific Paper

Access to finance for young innovative enterprises in Serbia: Assessment and recommendations for policymakers
aMetropolitan University, FEFA Faculty, Department of Economics, Belgrade
bCentre for Technology Entrepreneurship Development and Innovation ICT Hub, Belgrade
cUniversity Singidunum


Advancing Serbia's Competitiveness in the Process of EU Accession (MESTD - 47028)


We provide new empirical evidence of broader relevance for financing innovation, by assessing access to finance for young, innovative enterprises in Serbia as a transition economy. A relevant data set was analysed using an online survey, building upon a wider literature review, policy documents and related entrepreneurship surveys. Derived results, corroborated by in-depth interviews with stakeholders, suggest that young innovative enterprises are overly reliant on internal sources of financing. When considering external financing, they tend to be mostly interested in grants, subsidised bank loans (and to a lesser extent equity investment), rather than the more traditional bank financing. These results support other studies demonstrating that equity financing is better suited to finance early innovation compared to debt, and that subsidised government programmes are required to bridge the gap to equity financing. Our policy recommendations centre on fostering non-bank sources of financing, while providing support to increasing technology readiness and improving the business climate.



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