EVALUATION OF SMES FINANCING IN MACEDONIA FROM THE â€œSUPPLY SIDEâ€ PERSPECTIVE
AbstractThe starting point of the research is the wide accepted evidence that the SME sector is one of the most importantÂ drivers of the economy in each country. In addition, many studies and research have concluded that accessÂ to finance remains to be a major concern and main obstacle for SMEs growth and development in developingÂ countries. Bank loans are the main source of external financing of SMEs almost in all countries in the region,Â however, there are many factors as higher administrative costs and risks involved in lending to SMEs thatÂ reduce banksâ€™ willingness to lend to them. Therefore, many governments have acknowledged the importanceÂ of implementing various policies and programs aimed to support SMEs and their development, particularly inÂ the time of global financial crises. However, the Government policies regarding this issue should be based onÂ detail analysis of both, supply and demand side. The aim of this research is to provide an assessment of SMEÂ financing from the â€œsupply sideâ€ i.e. from the banksâ€™ viewpoint. The method used for the research is a questionnairebased survey on five selected banks in Macedonia and on-site interviews with bankâ€™s officials.
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