SUPPORT OF ENTREPRENEURSHIP OF SMALL AND MEDIUM ENTERPRISES THROUGH FINANCIAL RESOURCES FROM EU FUNDS - Polish Journal of Management Studies

Search
Polish Journal of Management Studies
 ISSN 2081-7452
Go to content

Main menu:

SUPPORT OF ENTREPRENEURSHIP OF SMALL AND MEDIUM ENTERPRISES THROUGH FINANCIAL RESOURCES FROM EU FUNDS

Abstracts > Vol 1


SUPPORT OF ENTREPRENEURSHIP OF SMALL AND MEDIUM ENTERPRISES THROUGH FINANCIAL RESOURCES FROM EU FUNDS


Huttmanova E., Kiselakova D.*


Abstract

This paper focuses on the importance of sector small and medium enterprises (SME) in each economic system and necessity of support of development and of entrepreneurship of this sector.  The first part deals with an analysis of development of quantitative parameters of SME through selected macroeconomic indicators and with present situation of development in EU and Slovakia. The main part analyses support of entrepreneurship of SME through  EU funds and programmes and utilization of financing through EU funds in Slovakia in practice. In the end of the paper are outline new trends and ways of the financing of SME and its effects on international competitiveness and cooperation for SME in  EU. (JEL: L26, G15, O11)


Key words: support of entrepreneurship, small and medium enterprises (SME), financing of SME, financial resources, EU funds

Introduction

Small and medium enterprises (SME) in general terms, companies with fewer than 250 employees, are regarded as the backbone of economies in EU. Some 99 % of all enterprises are SME,  and it is in SME that most new jobs are created.  The European Union is implementing a wide range of policies designed to create a business environment, which encourages entrepreneurship and entrepreneurs to start new enterprises, businesses and to grow  existing ones. In June 2008, the European Commission launched the Small Business Act for Europe, with the aim of strengthening still further support for SME, and particularly to ensure that SME needs are taken into account at all levels of policy-making,  EU, national, regional and local[6]. The current economic and financial crisis makes the need for SME support all the more vital. Many activities in EU and discussions will focus on reducing the administrative burdens on business and financing and removing  barriers to entrepreneurship. The important financial sources for support of entrepreneurship represent also EU financial funds.
The aim of this paper is to characterize the importance of development of sector SME for each economic system through selected macroeconomic indicators by international comparison, to analyse the main factors of utilization of  EU financial funds and programmes in competitiveness and in practice of SME and other firms [1]. The main research problem, which is discussed:
How can support of financing improve the entrepreneurship of SME and its importance on macroeconomic indicators? What is the importance of entrepreneurship and financing for each company management?  How to improve access to finance  and financing for SME in EU? The answers to the questions are expected also from management of support of entrepreneurship and financing from EU financial funds and several of supporting programmes.


... more in full version

Summary

The objective of this paper is to point at the importance and big developing potential of sector SME for each economy system. Based on the analysis of selected main macroeconomic indicators  were pointed at positive trends of growth of this sector, the comparison of main macroeconomic indicators and comparability of importance of sector SME in Slovakia and in EU.
For the support of development of this sector and its entrepreneurship is necessary to use opportunities through the financing via EU funds and its programmes.  In the paper main spheres of these activities of NADSME in Slovakia  were sketch and also necessity of rising of utilization of many programmes for SME in Slovakia in practice.
The prosperous sector of SME in Europe is a key to the success of healthy national economy and business environment. Europe needs more entrepreneurship in order to stay competitive in the world globalization. Thus is necessary  to create positive and motivating environment for more people to start up as well as for the growth of small enterprises and doing business in the enlarged EU [5]. New challenges of increasing market internationalisation and industrial mutations require  also from Slovak companies not only strong production capacity but also a high level of adaptation and flexibility together with strategic approach. Support of entrepreneurship and utilization of financing through EU funds, Structural funds and programmes  for SME, has been growing around the world.
We would like to outline new trends in the SME financing, with further considerations based on convergence of interest rates in European monetary area, tendencies to decrease the income tax, improvements of access to loans, decreases  in price and/or costs of capital, and permanently rising utilization of long-term financing from EU funds and programmes.


References

[1]   Dankova, A.: Rozvoj malych a strednych podnikov v Karpatskom euroregione. Bratislava: EKONOM, 2005. 67 s. ISBN 80-225-1951-0
[2]   Markova, V.: Male a stredne podnikanie v Slovenskej republike. Banska Bystrica: Univerzita Mateja Bela, 2003. ISBN 80-8055-816-7.
[3]   Annual report 2007, National agency for development of SME. [Online] http://www.nadsme.sk/mediaprofiles//Vyrocne%spravy/AR07_en.pdf [Quoted 2009-04-10, 2009-04-15]
[4]   Small and medium size enterprise financing in Eastern Europe. [online] The World Bank Development Research Group, 2003. [Quoted 2009-04-10, 2009-04-15] Accessible online: <http://www-wds.worldbank.org/servlet/WDSContentServer
/WDSP/IB/2003/01/07/000094946_02121304013466/Rendered/PDF/multi0page.pdf
[5]   Financial and legal constraints to firm growth - Does size matter? [Online] The World Bank Development Research Group, 2002. [Quoted 2009-04-14, 2009-04-15] Accessible online:  <http://www-wds.worldbank.org/servlet/WDSContentServer/WDSP/IB/2002
/03/15/000094946_02030504085434/Rendered/PDF/multi0page.pdf <http://www.euroinfo.gov.sk/index> [Quoted 2009-04-14]
[6]   http://ec.europa.eu/enterprise/e_i/news/article_8890_en.htm
[7]   http://www.nadsme.proxia.sk/

WSPIERANIE PRZEDSIEBIORCZOSCI MALYCH I SREDNICH PRZEDSIEBIORSTW SRODKAMI FINANSOWYMI Z FUNDUSZY UNIJNYCH


Streszczenie

Artykul koncentruje sie na znaczeniu sektora malych i srednich przedsiebiorstw (MSP) w kazdym systemie gospodarczym i koniecznosci wspierania i rozwoju przedsiebiorczosci w tym sektorze.  Pierwsza czesc dotyczy analizy ilosciowej rozwoju malych i srednich przedsiebiorstw wykorzystujacej parametry wybranych wskaznikow makroekonomicznych zwiazanych z obecna sytuacja i rozwojem w UE i na Slowacji. Glowna czesc prezentuje wsparcie przedsiebiorczosci  malych i srednich przedsiebiorstw w ramach funduszy i programow UE oraz wykorzystanie w praktyce finansowania z funduszy UE na Slowacji. Na koncu przedstawione sa nowe trendy i zarys sposobow finansowania MSP oraz ich wplyw na miedzynarodowa konkurencyjnosc  i wspolprace malych i srednich przedsiebiorstw w UE.





 
Back to content | Back to main menu