Microcredit financial institutions as a strategic instrument for strengthening Serbian financial system, promoting entrepreneurship, and achieving inclusive economic growth

Ivana Ostojić; Predrag Petrović

doi:10.71159/icemit2554O

Authors

Ivana Ostojić Institute of Social Sciences, Centre for Economic Research, Belgrade, Serbia
Predrag Petrović Institute of Social Sciences, Centre for Economic Research, Belgrade, Serbia

DOI:

https://doi.org/10.71159/icemit2554O

Keywords:

microfinance institutions, MSMEs and entrepreneurs, inclusive economic growth, financial inclusion, financial system

Abstract

Microfinance can act as both a financial and developmental tool for Serbian MSMEs by improving access to credit, promoting inclusion, building capacity, fostering innovation, and supporting regional and green development. The demand for microfinance is driven by exclusion from mainstream finance and the need for small, flexible, and accessible financial products. The research investigates how microfinance would contribute to the stability of the Serbian financial system and to the inclusive growth of the MSME sector. Results of the study indicate that there is a significant demand for microcredit in Serbia, and microfinance would contribute to the stabilization of the domestic financial system, as well as to the improvement of the financial position of MSMEs. Research confirmed that there is a mismatch between the currently available banking products and the financial needs of MSMEs. It was also verified that microfinance would stimulate employment in Serbia and facilitate the establishment of enterprises.

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