Abstract
Research background:Small and medium-sized enterprises form the backbone of any national economy. Therefore, sources of financing are important for the enterprise´s growth around the world. Finance for enterprises can be divided into classic and alternative. Recently, alternative ways of financing experienced a boom, especially venture capital, business angels, and crowdfunding. Although this type of funding is well known around the world, there are difficulties in using alternative financing among the Visegrad group. Moreover, there are lots of other factors curbing the expansion of enterprises.Purpose of the article:The purpose of this paper is to identify and compare sources of financing for small and medium-sized enterprises among the Visegrad group with focus on alternative financing. Visegrad group consists of the Slovak Republic, the Czech Republic, the Hungary, and the Poland. This paper presents an overview of available financing for small and medium-sized enterprises among the Visegrad group.Methods:For analysis, we used data from the the Survey on the access to finance for enterprises in 2019. Moreover, we also did hypothesis testing to compare the usage of financing through bank overdraft in the year 2019.Findings & Value added:We have reached several conclusions. Firstly, this paper suggests that classic sources of financing are used more than alternative ways, from which the bank loans and leasing are used the most. Secondly, the best condition of financing among countries of the Visegrad group is in Poland, but also other countries have huge potential. And finally, financing of enterprises is not the main issue causing difficulties in making business.
Highlights
Small and medium-sized (SME) enterprises are an integral part of every economy
The aim of this paper is a comparison of available financing for SMEs based on SAFE survey data with a focus on alternative financing such as business angel’s investment and crowdfunding and the second aim is hypothesis testing on selected financing
Every thirteenth Czech company has a problem with the availability of capital. access to finance is the least barrier defending SME to grow
Summary
Small and medium-sized (SME) enterprises are an integral part of every economy. Their share in the country's produced GDP and the share in the number of jobs created is notable in each economy. In the Visegrad group (V4), SMEs contribute more than half of GDP and employ more than 60% of the total workforce. SMEs are more involved in job creation than large companies [2]. These SMEs often face funding barriers due to insufficient collateral, unclear information, risk and high transaction costs for capital acquirers [9, 13]. SME development is a sign of a countrys macroeconomic stability [7]
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