FINANCING SOURCES FOR ROMANIAN SMEs IN THE CONTEXT OF KNOWLEDGE BASED ECONOMY

Daniel Uritu () and Alexandru-Emil Popa

Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, 2015, vol. 9, issue 1, 590-597

Abstract: SMEs access to the finance needed to run the business was and still is one of the main problems that SMEs are facing. The resources available to SMEs are always limited and insufficient for their development potential. Therefore, the study aims to identify the financing sources for Romanian SMEs, to quantify in what measure they apply to this financing sources and what is their trend.In order to present the actual financing sources for SMEs in Romania we used 3 methods. First we conducted an interview addressed to Romanian entrepreneurs in order to identify the financing sources to which they call on most frequently. Secondly, we conducted a quantitative study in order to quantify the number of entrepreneurs that appeals to each of the identified sources. Thirdly, we compared the results from the past five years (2011 – 2015) in order to observe the trend.Approximately 82.04% of Romanian SMEs under questioning finance their economic activities out of own sources and only 24.58% of them use the bank credit for financing. Although there is a great range of funding sources, very few entrepreneurs use other sources than the classic ones, self-financing and bank credit. There are significant numbers of SMEs that could use funds productively if they were available, but cannot obtain finance from the formal financial system.

Keywords: financing; SMEs; knowledge-based economy. (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:rom:mancon:v:9:y:2015:i:1:p:590-597

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