The effects of state funded support on the survival of start-up companies in Serbia
This paper examines the existence of a cause-and-effect relationship between state funding and the lifespan of startup companies in Serbia. The literature is dominated by two opposing views. According to first, there is a positive impact of state financial support on the growth and the survival rate...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Center for Economic and Financial Research, Belgrade
2021-01-01
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| Series: | Oditor |
| Subjects: | |
| Online Access: | https://scindeks-clanci.ceon.rs/data/pdf/2217-401X/2021/2217-401X2101071V.pdf |
| Summary: | This paper examines the existence of a cause-and-effect relationship between state funding and the lifespan of startup companies in Serbia. The literature is dominated by two opposing views. According to first, there is a positive impact of state financial support on the growth and the survival rate of companies. On the other hand, the prevailing notion is that state financial support for startups, especially in countries in transition, is less efficient than other state measures. The goal of this paper is to evaluate the effectiveness of state financial support for newly formed companies in Serbia, given the contradictory results presented. The starting assumption is that the financial resources that the state allocates through subsidies and dedicated loans for start-up companies in Serbia has a positive effect on the duration of their lifespan. The survey covered 100 companies that had been founded in the period of 5 to 6 years. The data obtained was statistically analyzed using appropriate non-parametric methods. Results show the presence of a positive impact of state funded support on the lifespan of start-up companies in Serbia. The results obtained can help further define state policies for the development of small and medium-sized enterprises. |
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| ISSN: | 2217-401X 2683-3476 |