Analysis of Financing Sources for SMEs In Croatia

Marina Klačmer Čalopa – University of Zagreb Faculty of Organization and Informatics, Pavlinska 2, 42 000, Varaždin, Croatia

Abstract: This paper presents sources of financing for small and medi­um-sized enterprises (SMEs) in Croatia. The paper presents the problems that the companies have when financing the development of SMEs, and then traditional and alternative types of enterprise financing in the Re­public of Croatia.

This paper researches the scientific and professional literature over the past decade (before, during and after the COVID-19 crisis), primarily drawing from the Web of Science database and utilizes an analytical ap­proach to detect issues accompanying financing sources for SMEs in Cro­atia. The analysis focuses on quantitative research methods to review se­lected articles based on keywords such as entrepreneurship, financing sources, and SMEs. Only articles aligning with the specific aims of this paper will undergo in-depth examination. The obtained results from the analysis of sources of financing will be presented through examples from business practice.

8th International Scientific Conference – EMAN 2024 – Economics and Management: How to Cope With Disrupted Times, Rome, Italy, March 21, 2024, CONFERENCE PROCEEDINGS, published by: Association of Economists and Managers of the Balkans, Belgrade, Serbia; ISBN 978-86-80194-83-7, ISSN 2683-4510, DOI: https://doi.org/10.31410/EMAN.2024

Creative Commons Non Commercial CC BY-NC: This article is distributed under the terms of the Creative Commons Attribution-Non-Commercial 4.0 License (https://creativecommons.org/licenses/by-nc/4.0/) which permits non-commercial use, reproduction and distribution of the work without further permission. 

REFERENCES

Chit, M. M., & Rizov, M. (2023). SMEs’ diversification of financing sources: Strategy or des­peration?. International Journal of Finance and Economy, https://doi.org/10.1002/ijfe.2822

Croatian Business Angels Network. (n.d.). O nama (About us.). http://crane.hr/onama

Dikaputra, R., Sulung, L. A. K., & Kot, S. (2019). Analysis of Success Factors of Reward-Based Crowdfunding Campaigns Using Multi-Theory Approach in ASEAN-5 Countries. Social Sciences, 8(10), 293. https://doi.org/10.3390/socsci8100293

Elgammal, M. M., Al Bakri, A. A., & Al Janahi, A. Y. (2023). The Effect of New and Tradi­tional Sources of Financing on the Performance of Small and Entrepreneurship Business­es: The Case of Qatar. Cogent Economics & Finance, 11(2). https://doi.org/10.1080/23322039.2023.2183667

European Survey. (2023). Access to sustainable finance for SMEs – a European survey. https://www.smeunited.eu/publications/access-to-sustainable-finance-for-smes-a-european-sur­vey-2023

Gopal, M., & Schnabl, P. (2022). The rise of finance companies and FinTech lenders in small business lending, The Review of Financial Studies, 35(11). pp. 4859-4901

Harc, M. (2019). Struktura kapitala malih i srednjih poduzeća u Republici Hrvatskoj, Poslovna izvrsnost, Vol. 13 No. 1, https://doi.org/10.22598/pi-be/2019.13.1.87

Kolaković, M., Turuk, M., & Turčić, I. (2019). Access to Finance – Experiences of SMEs in Cro­atia. Zagreb International Review of Economics & Business, Vol. 22, Special Conference Issue, pp. 1-14, 2019.

Kovšca, V., Lacković Vincek, Z., & Murić, D. (2024). Contemporary Forms of Financing for Small and Medium-sized Enterprise: Country Case Study of Croatia. TEM Journal. Vol­ume 13, Issue 1, pages 818-829, ISSN 2217-8309, DOI: 10.18421/TEM131-84

Kraemer-Eis, H., Botsari, A., Gvetadze, S., Lang, F., & Torfs, W. (2023). The European Small Business Finance Outlook. https://www.eif.org/news_centre/publications/eif_working_paper_2023_96.pdf  Accessed 15 February 2024

The Official Gazette. (136/2013). Strategija razvoja poduzetništva Republike Hrvatske 2013–2020. (the Strategy of development of entrepreneurship in the Republic of Croatia 2013–2020).

Ploh, M. (2017). Ograničenja i mogućnosti financiranja malih i srednjih poduzeća u Republici Hrvatskoj. FIP-Financije i pravo, 5(1). 79-106.

Poslovno inovacijska agencija Republike Hrvatske. Business Innovation Croatian Agency. BI­CRO. https://hamagbicro.hr/o-nama/osnivanje/

Rijanto, A. (2022). Creative industries project financing through crowdfunding: The roles of fund target & backers. Creative Industries Journal, 15(1). pp. 79-96

Rupeika-Apoga, R., & Saksonova, S. (2018). SMEs’ alternative financing: The case of Latvia, European Research Studies Journal, XXI(3). pp. 43-52

Sanga, B., & Aziakpono, M. (2023). FinTech and SMEs financing: A systematic literature review and bibliometric analysis, Digital Business, Volume 3, Issue 2, https://doi.org/10.1016/j.digbus.2023.100067 

Schenk, A. (2015). Crowdfunding in the context of traditional financing for innovative SMEs. In European Conference on Innovation and Entrepreneurship (p. 636). Academic Confer­ences International Limited.

Sequeira, J., Pereira, C., Gomes, L., & Lima, A. (2024). Features of the Association between Debt and Earnings Quality for Small and Medium-Sized Entities. Risk. Volume 12, Issue 2, DOI10.3390/risks12020032.

Shao, J., Lou, Z., Wang, C., Mao, J., & Ye, A. (2022). The impact of artificial intelligence (AI) finance on financing constraints of non-SOE firms in emerging markets, International Journal of Emerging Markets, 17(4). pp. 930-944.

Xiang, D., Zhang, Y., & Worthington, A. C. (2021). Determinants of the use of fintech finance among Chinese small and medium-sized enterprises. IEEE Transactions on Engineering Management. 68(6). pp. 1590-1604.

Zhao, T., Matthews, K., & Munday, M. (2021). Neither True-friend nor Fair weather friend: Re­lationship Banking and SME borrowing under Covid-19 (No. E2021/25). Cardiff Univer­sity, Cardiff Business School, Economics Section.