| The thesis investigates factors that constrain the growth of small and medium size businesses (SMEs) in transition economies such as Serbia and Montenegro. Toward this goal, it reviews key barriers to doing business, as suggested by existing research. It also illustrates their relevance for Serbia and Montenegro using interviews conducted with SME managers and owners. Interview responses are used to explore four often overlooked barriers to doing business: inadequate human capital, illiquidity, use of social networks, and disconnects between the state and the SME sector. The thesis investigates each of these perceived constraints in order to illustrate their immediate effects, explore their prevalence in Serbia and Montenegro, especially relative to other noted barriers, and to suggest aspects requiring further analysis. |
