Do SMEs in Slovakia face real difficulties in obtaining financing? Comparison of the studies from Slovakia and the EU

Abstract

Abstract. Financial crises and worsening economic and business conditions reduce the number of enterprises in Slovakia. Many relevant institutions declare that barriers for doing business are increasing and many small companies have problems with financing. We decided to compare several scientific research studies from Slovakia and provide an answer to the question: Do SMEs in Slovakia really have problems with obtaining financial resources or is it just an overused assumption? Do companies face this type of financial risk? The aim of this article is to bring an answer to this question on the basis of the results of two scientific research studies conducted in Slovakia and focused on business and finance. The first was conducted in cooperation with the Association of Young Entrepreneurs and the second was part of international research at the Pan-european University in Bratislava and The University of Tomáš Baťa in Zlín. Both were realized in 2011-2013.The paper compares the obtained evidence with the statistical data from the EU. The comparison of Slovak and EU results concerning the situation with SMEs access to financing in Slovakia allowed to identify the differences and similarities regarding the stated hypotheses. This comparison offers a wider view on the situation in Slovakia and other EU countries.The results of our Studies, Vol. 9, No 3, pp. 36-52. DOI: 10.14254/2071-8330.2016 Aleksandr Ključnikov, Monika Sobeková Majková Alexander Schwendemann, Christian Knogler Do SMEs in Slovakia face real diffi culties in obtaining fi nancing?Comparison of the studies from Slovakia and the EU 37 study provide interesting conclusions. Slovak research studies explain that problems with access to financing of SMEs are in some way more pressing than according to the EU statistical data, but all research studies provide clear evidence about the difficulties SMEs face in obtaining finance in Slovakia.

Role of Microfinance Institutions in Financing Micro and Small Enterprises in Ethiopia

“…In contrast, the result from the PCA and the secondary data of loan trend and job created shows that there is no correlation between access to credit and number of job created. And this result contradicts the result of ADA (2017); ITC (2019); FDRE (2016); Fowowe (2017); Dinh et al 2010; Cherkos et al (2018); Ključnikov et al (2016); Gebreeyesus et al (2018) and ITC (2016) and other empirical evidence across the globe. However, due to limited data available for this study, we could not recommend for hast generalization and hence it needs further study to consider representative sample size and triangulate the evidence of secondary data with primary data through survey method.…”

“…However, despite this all contribution to the economy, the most recent report by World Bank (2019) reveals that, 40% of formal MSMEs in developing countries have an unmet financing need of $5.2 trillion every year, which is equivalent to 1.4 times the current level of the global MSME lending. Different empirical evidences across the world such as (ADA, 2017;ITC, 2019;FDRE, 2016;Gebreeyesus, Ambachew, Getahun, Assefa, Abebe, Hassen & Medhin, 2018;Fowowe, 2017;Dinh, Mavridis & Nguyen, 2010;Cherkos, Zegeye, Tilahun & Avvari, 2018;Ključnikov, Majková, Schwendemann & Knogler, 2016;ITC, 2016) also founds that lack of access to credit is the main constraints for the success of MSEs. Considering the huge contribution in creating job opportunity with relatively low capital, MSEs are identified as one of the priority areas of action among the programs addressing African development (Drbie & Tilaye, 2013).…”

Tax Reform as an Instrument for the Stability of the National Economy

“…Slovakia is in a stage of development when it seeks to reach the economic level of the European Union countries by creating an attractive business environment [16]. In addition, a good business environment creates a favorable environment for the development of small and medium-sized enterprises (SMEs), which are important part of the national economic system [17]. In the context of the above-mentioned Zubaľová [18] notes that it is not possible to remove all distortions from all areas burdened with taxes, i.e.…”