Comparative analysis of development funds for Serbia, Montenegro and Croatia

Abstract

Formation, growth, development and survival of SMEs, as the backbone of a country's economic development, depend significantly on the availability of capital in countries in which they operate. In conditions of low supply in capital market activities, development funds become even more significant for the SMEs sector. In this paper we will deal with the importance of development funds and their impact on the increase and acceleration of economic activity in the economies of Serbia, Montenegro and Croatia. Using the method of comparative analysis of the Development Fund of the Republic of Serbia, Investment and Development Fund of Montenegro and the Croatian Bank for Reconstruction and Development, we will analyze their impact on businesses and economy as a whole through capital investments to small and medium enterprises and entrepreneurs. The analysis will show that the environment and the level of development of business entities, and their capacity for further development have an important influence on the activities of development funds. What is more, in this paper we will also address the significance of development funds for SMEs, as opposed to commercial banks, in terms of availability of funds, securities and capital circulation.

Keywords

• development fund
• economic development
• small and medium enterprises and entrepreneurs (SMEs)
• finance enterprises