Abstract

Paper entitled Financing and importance of small business to encourage economic activity, deals with the problem which is an adequate model of financing activities of small businesses and what their importance in encouraging commercial activities. It is focused on models of financing small businesses in developed market economies. The main objective of this work is to define models, characteristics and trends in the financing of small business and defines an adequate selection of the structure of financing of small and medium-sized enterprises based on determinants such as economic policy, regulations, traditions, and the development of small business, subsidies and the level of motivation of small entrepreneurs. The study is based on proving the hypothesis that financing and encouraging the development of small business implies the development economic activity and increasing employment. It has made use of scientific research methods, such as analysis method and descriptive method to explain forms of small business financing in international practice and domestic environment, and inductive and deductive methods to make right conclusions from the research results. To extract trivial and highlight the important elements in the work used are methods of abstraction and concretization, and methods of specification and generalization.

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