Entrepreneurial Business Management and Financing of Small and Medium Enterprises

Abstract

Living in a time of rapid socio-economic change occurring globally, regionally and nationally, they operate with varying intensity in the SME sector. Until recently, the focus of attention has not been on small and medium-sized enterprises and their entrepreneurship from an economic perspective.

The changes that have taken place in the world have reflected a greater risk of shifting the economic focus by shifting the entrepreneurship of micro and small enterprises. In developing countries such as the United States and the United Kingdom, small businesses became an important factor in economic development in the 1990s due to increasing employment in small enterprises.

First, many people who set up their own businesses or were employed in small businesses were virtually laid off by large companies in the 1980s and early 1990s.

Second, large companies have seen a noticeable trend in outsourcing some of their activities to small businesses, a process that has been greatly facilitated by the increasing use of the Internet.

Third, the relative stability of the economies in England and the United States after the 1990s encouraged more and more entrepreneurial activity.

Fourth, the emergence of new economies in the world has accelerated global development, which is also encouraging more and more entrepreneurial activity.

Therefore, in the coming years, it can be expected that small businesses, continuously, will play a significant role in job creation and economic growth and, therefore, due attention should be paid to the research of entrepreneurship and small enterprises, as which is the topic of this research paper. Small and medium-sized enterprises are an important component of local, regional and national economies and, as such, a potential target for policy and institutional interventions. However, it should be emphasized that the importance of small and medium enterprises for any economy depends a lot on the ability of the state to fulfill its roles effectively. In this sense, economic strategies aimed at supporting small and medium-sized enterprises, in particular, small enterprises should focus on the factors that encourage it, but also on those factors that limit the creation and growth of those businesses. Empirical experiences show that small enterprises have a very important role for development in many respects. In fact, small enterprises produce 2.5 times more new products than large enterprises, they can often diffuse more successfully some of the latest technologies, almost as a rule, their innovations are more effective and efficient, they can be irreplaceable in some areas of production, and can also more effectively meet the needs of relatively small but special markets.