Organization of Small and Medium Enterprises in the Republic of Northern Macedonia

Abstract

Small and medium enterprises (SMEs) have a very important economic and social role, due to their contribution to the functioning of the economic network and job creation. These contributions are very valuable in the conditions of crisis and rising unemployment. Especially in the Republic of Northern Macedonia, the development of SMEs can affect the many challenges related to economic development, the effects of inequality, high unemployment and demographic growth. In addition, the development of the SME sector can contribute to strengthening competitiveness and productivity, while increasing Gross domestic product (GDP) and per capita income growth. This development will also promote the structural transformation of the SME sector, due to its connection with innovation and technological development. The study aims to identify and analyze the main structuring that affect the success and growth of small and medium enterprises (SMEs), ie their performance, as well as to analyze the effects that these indicators have on the economic growth of SMEs. In this research are addressed some important issues and general problems of the financing system, the financial situation of small and medium businesses in northern Macedonia. Also, this paper will present, both from a theoretical and practical point of view, the relationship between these key performance indicators, or in other words, SME growth. Therefore, the development of the SME sector is very important in Macedonia, especially considering that social problems are largely the consequence of unequal economic growth.