Economics & Sociology

ISSN: 2071-789X eISSN: 2306-3459 DOI: 10.14254/2071-789X
Index PUBMS: f5512f57-a601-11e7-8f0e-080027f4daa0
Article information
Title: The Analysis of Chosen Business Obstacles and Problems with the Financing of Young Entrepreneurs in Slovakia
Issue: Vol. 7, No 3, 2014
Published date: 20-09-2014 (print) / 20-09-2014 (online)
Journal: Economics & Sociology
ISSN: 2071-789X, eISSN: 2306-3459
Authors: Monika Sobeková Majková
Ján Solík
Juraj Sipko
Keywords: small and medium sized enterprises, young entrepreneurs, financial resources, obstacles in financing, barrier of financing
DOI: 10.14254/2071-789X.2014/7-3/7
Index PUBMS: 1ffc3498-aa13-11e7-8eae-080027f4daa0
Language: English
Pages: 90-103 (14)
JEL classification: G11, G32

Small and medium-size enterprises (SME) are the backbone of every economy. Usually they create half of state added value and employ about two thirds of employees. Because of their importance for each country, we decided to write about their problems in relation to obtaining finance. Small size is the primary reason why they have problems securing a bank loan. Furthermore, they usually have a short business history and weak capital power. Unemployment of young people is not a problem only in Slovakia but also in the European Union in general. In 2013, more than 30% of young people under 25 years old were without work – an alarming number. Supporting entrepreneurship is one to decrease this figure. In 2011-2012, we conducted research on young Slovak entrepreneurs and the problems they encounter in starting a business. In this study, we try to illustrate the present business obstacles and issues with financing of young businessmen in Slovakia. The main objective of the study is to conduct a theoretical knowledge review on financing of SMEs and to analyse the main factors that make obtaining finance more difficult in Slovakia. We would also like to show different points of view of young entrepreneurs and potential young entrepreneurs in Slovakia on financing businesses and also the different viewpoints of men versus women. After this analysis, we would like to offer a summary of opinions to solve this problem. Slovakia has a big problem with unemployment of young people and one of the ways how this issue could be solved would be to support young businessmen in overcoming obstacles in starting their own businesses.