Bridging Entrepreneurial Intention and Action: How Financing Models Shape the Growth of Innovative SMEs in Widening Countries

Ana Kitić (), Mladen Radišić and Aleksandar Takači
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Ana Kitić: Faculty of Mechanical Engineering, University of Niš, Aleksandra Medvedeva 14, 18000 Niš, Serbia
Mladen Radišić: Faculty of Technical Sciences, University of Novi Sad, Trg Dositeja Obradovića 6, 21102 Novi Sad, Serbia
Aleksandar Takači: Faculty of Technology, University of Novi Sad, Bulevar Cara Lazara 1, 21102 Novi Sad, Serbia

Administrative Sciences, 2025, vol. 15, issue 11, 1-21

Abstract: While entrepreneurship is recognized as a key driver of economic development, barriers such as financing constraints, regulation, and inefficient capital allocation continue to limit its potential, especially in Widening countries. This study examines how different financing mechanisms contribute to improving business performance in innovative companies and whether such instruments trigger business model adaptation. A quantitative survey was conducted among 81 companies, and the collected data was analyzed using correlation analyses to test predefined hypotheses. The findings indicate that financing mechanisms significantly influence business improvement, with grants and venture capital showing the strongest effects. Financing also often induces adaptations in business models, partially confirming the hypothesis that such changes enhance financial outcomes. The analysis of the Global Entrepreneurship Index (GEI) further reveals that, although higher-ranked countries tend to perform better overall, no strong correlation exists between GEI ranking and access to financing. The study contributes to the literature by emphasizing the differentiated effects of financing instruments on firm growth and by offering theoretical insights and practical implications for policymakers seeking to strengthen entrepreneurial ecosystems in emerging regions.

Keywords: entrepreneurial intention; entrepreneurial finance; SMEs (small and medium-sized enterprises); venture capital; business angels; crowdfunding; grants; Global Entrepreneurship Index (GEI); widening countries (search for similar items in EconPapers)
JEL-codes: L M M0 M1 M10 M11 M12 M14 M15 M16 (search for similar items in EconPapers)
Date: 2025
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