Business plan as instrument to finance growth and development of SME and the corporative sector of Sandzak

Abstract

During the past ten years, there were certain changes affecting corporate governance, and development of SME sector. In 2004, the new Law on Enterprises was adopted, which far better regulates matters of company law, including corporate governance. The above situation caused a foundation to start the massive use of the name 'business plan', which is more recent and can be correlated with the arrival of foreign financial institutions and the inflow of foreign capital into the market of the Republic of Serbia. Business plans are often used in the SME sector to find the options for financing the venture. Business plan indicates the obstacles that stand in the venture and suggests alternative routes. A business plan is and must be a necessary part of corporate governance, in which the Board shall conduct the assessment, comparison and adjustment of business plans. And certainly a time will come when correct and realistic business plans will be in the complete function of corporate governance, not only for obtaining funds. The role of business plan (at the level of Sandzak) should be more emphasized to a greater extent in the short term benefit, especially long-term funding from a number of funds, especially the future accession of EU funds.