Financial Barriers to SME Growth in Slovenia

V Bukvič, WJ Bartlett

Research output: Contribution to journalArticle (Academic Journal)peer-review


This paper is based on the findings of a research project (Phare ACE 1997) that aimed to identify the critical barriers to small business growth and development in Slovenia, Bosnia and Macedonia. Within this paper the authors limit themselves solely to financial barriers to SME growth in Slovenia as being the most important ones besides fiscal barriers. The research was based on a sample survey of more than 200 Slovenian SMEs carried out in autumn-winter 2000/01. Among financial barriers, some specific issues such as the high cost of capital, high collateral requirements, and banks' bureaucratic procedures were highlighted as worrying constraints. The key barriers to growth identified in the research also included other factors linked to financial constraints, like customers' late payment of bills and inadequate information on finance. Slovenia's membership in the EU may ameliorate some of these problems by opening up greater access to global capital markets. But the research suggests there will be a continuing need to develop and implement more effective policies to ease financial constraints facing SMEs and to thereby enhance job creation, competitiveness and innovation in Slovenia.
Translated title of the contributionFinancial Barriers to SME Growth in Slovenia
Original languageEnglish
Pages (from-to)161 - 181
Number of pages21
JournalEconomic and Business Review
Volume5 (3)
Publication statusPublished - Sep 2003

Bibliographical note

Publisher: Union of Economists of Slovenia

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