REGULATORY AND INSTITUTIONAL RESTRICTIONS ON SMALL BUSINESS LOANS IN SERBIA

Lending to small and medium-sized enterprises is significantly more difficult compared to lending to large companies. In many studies, SMEs cite access to funding sources as one of the biggest barriers to business growth and development. In Serbia, bank lending is the main external source of financing for SMEs. However, in addition to the restrictions from the aspect of banks and the restrictions from the aspect of these enterprises, the restrictions on difficult lending to SMEs also come from the institutional and regulatory support of our country. EU regulations and strategic documents of our country are increasingly emphasizing the provision of adequate financing and lending conditions for SMEs, given that these companies are the backbone of each country's economy. It is especially important to preserve this sector in the period of the current crisis, by choosing adequate measures, subsidies and state guarantees. This paper aims to present the most significant limitations in giving loans to SMEs, from the regulatory-institutional aspect, i.e. limitations that can be removed or at least mitigated by adequate regulations.