KNjIGA SAžETAKA / BOOK Of ABSTRACTS - Treći međunarodni ...

MSc Zoran Najdanović
Zagreb Business School
Vukovarska 68, 10000 Zagreb, Croatia
tel.: 091/233-61-55
e-mail: zoran.najdanovic@gmail.com
PhD Branislav Mitić
e-mail: mmmbane@gmail.com
Title of the contribution:
Microcrediting as an incentive for development of rural
economies
Keywords:
banks, rural economies, microcredit, development
Type of presentation:
Ppt
3. TemATSkA cJelinA: kReiRAnJe i DiSTRiBUciJA pRoizvoDA RURAlnog TURizmA
Theme:
Regional development, financing and International cooperation
Purpose of study:
The main objective of this study is to prove the importance
and need to achieve a legislative micro crediting
framework as in the EU and countries of SEE.
Methodology/Approach:
The primary research was carried out on 1100 respondents
in the Republic of B&H under the working title
„The readiness to raise loans for starting business“. As
the approach to a bank credit market in Croatia is similar
as in B&H, below 40 percent of the adult working age
population are eligible for banks, introduction of micro
credit institutions to a market of financial institutions
becomes “conditio sine qua non” for development of a
small economies and thus overall economy of a single
country.
Findings:
The result analysis will prove that a large number of
unemployed and retired population without access to
a bank loans through sources of micro credit organizations
will be able to start their business projects. This funding
is very important for rural areas where agricultural
households have no regular source of monthly income
and for the banks they are not creditworthy.
Structured abstract
EC (European Commission) defines the term of micro
credit loans as loans less than € 25,000 but Members of
EU can reduce the amount due to the height of its GDP
in relation to EU average. Although the EU social protection
is at the top of the world, yet 25% of the population
of most developed Western Europe does not have access
to formal financial sector.
Originality/Value:
The self-employment project though microcredit organizations
contributes to self-employment of the unemployed
population, improves and raises standards of
independent businessmen who don’t have access to
banking markets. The contribution of the funding model
is in a theoretical and practical proposal for self-employment
that will reduce unemployment, increase of
citizen’s life standard, and for a state and local community
it will create new revenue through taxes and contributions.
Research limitations/Implications:
The biggest obstacle is lack of information among the
population about alternative ways of financing their
own entrepreneurial projects, besides using bank loans.
Also respondents represent skepticism for a new kind
of institution that does not have a long tradition, which
is one of the basic requirements for choosing their own
credit institutions.
Practical implications:
For the aim of the practical application best quote comes
from the EU resolution on microcredit: “The success
of the European initiative on microcredit can significantly
contribute to achieve the goals of the revised
Lisbon strategy for growth and employment and the
creation of innovative, creative and dynamic European
economy.”
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