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The Effects of State Funded Support on the Survival of Start-up Companies in Serbia

Ivana Vujanić[1], Đorđe Dabetić[2], Ivana Erić[3], Maja Đokić[4]
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Paper Received: 13.12.2020.
Paper Accepted: 29.01.2021.
DOI: 10.5937/Oditor2101071V

Review

UDC:
005.41:334.7(497.11)
336.6(497.11)
336.77:338.3(497.11)
EAT: M13

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.

Key words: start-up, survival rate, loans, subsidies

[1]Professor of Applied Studies Ivana Vujanić PhD, Belgrade Business and Arts Academy of Applied Studies, Kraljice Marije 73, Beograd, E-mail: ivana.vujanic@bpa.edu.rs
[2]Assistant Professor of Applied Studies Đorđe Dabetić PhD, Belgrade Business and Arts Academy of Applied Studies, Kraljice Marije 73, Beograd, E-mail: djordje.dabetić@bpa.edu.rs
[3]Professor of Applied Studies Ivana Erić PhD, Belgrade Business and Arts Academy of Applied Studies, Kraljice Marije 73, Beograd, E-mail: ivana.eric@bpa.edu.rs
[4]Associate Professor Maja Đokić PhD, Faculty of Economics and Engineering Management in Novi Sad, Cvećarska 2, Novi Sad, E-mail: djokic.maja@fimek.edu.rs