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The impact of small and medium-sized enterprises (SMEs) in employment and value added in the Republic of Macedonia registered a slight increase in the period from 2009 to 2013. Just like in other economies in the region, most SMEs work in the wholesale and retail trade sector (44.0%), followed by the manufacturing sector (13.0%) (OECD 2016). Based on the importance of SMEs in the Macedonian economy in general, this paper aims to point out the gap that exists between the well-identified weakness of the Macedonian economy towards stimulating the life expectancy of SMEs on the one hand and their development on the other, emphasized in the forms of the sources of funding available to them. For that purpose are used statistical analyzes and comparisons, and are accepted conclusions about the current situation with the SMEs environment and the forms of financing of SMEs in Macedonia

Competition is important for proper functioning of all economic sectors, because it pressures the companies to be more innovative, efficient and effective. With the proper competition, the results show better performance and achievement of the desired outcome. Consequently, well-functioning companies are drivers for economic growth. However, competition in the financial sector is not as easy applicable as in the other economic sectors. High regulations can affect the flexibility and the innovative performance of the financial institutions. Nevertheless, the results of the effect of competition in the financial sector, with an emphasis on the banks, are mixed. Some theories show that competition has positive impact, contrary to some other findings that showed limited effects. In order to have economic success and progress, economic freedom is needed. Hence, in this paper the Business Freedom Index is presented for Albania, Bulgaria, Greece, N. Macedonia and Serbia for 2019-2021. The competitive pressure in the market pressurizes the countries to perform better in the areas that can help them achieve progress.

The Covid- 19 crisis has gripped the world as a whole, with all its subsystems. For some it was and still is a nightmare, for others an unprecedented opportunity. While some industries are getting poorer, other industries are getting richer. This paper covers the analysis of a sector to which this period is not so dark. It is about electronic banking. The need to maintain physical distance has intensified the use of e-banking in some countries even unforeseen. On the other hand, there is still a reluctance to use this way of using banking conditions, sometimes due to aversion to technology, sometimes due to ignorance. This paper is written on the basis of a survey conducted among young people in the city of Stip, Macedonia, for their knowledge of banking and their predictions for electronic banking. A total of 202 people were interviewed and their answers were interpreted based on statistical analysis. The conclusion of this paper should be based on the views of young people on electronic banking and its future. Based on them, a forecast should be given for the future trends of electronic banking in Macedonia’s economic recovery. Methods of analysis, comparisons and statistical calculations were used to show the real picture of the current situation.

Every company must seek the formula that works best for its particular culture and industry. There is no one right way to transform a conventional company into a value driven company. But all the authentically responsible companies subscribe to a set of principles about: the mission, vision, transparency, working, responsibility, openness, authenticity and innovation – all this put in an agenda for value driven companies which are prepared for the challenges we all face. This chapter analyses how the transformational forces: the tangible worth of intangible assets, the war for top-grade talent, the impressive power of inspired employees, the transparent supply chains, the global impact of NGOs, the informed global consumer reshape the business landscape. The insurgent companies that seize on these drives will create real value and increase their long-term profitability. The concept of radical transparency in business gives the companies the opportunity to win the battle for success differently from the competitors, which would ensure the company's sustainable growth and profitability, arousing from the well-shaped relationships with the stakeholders who provide value for the company. The company's brand would be a synonym for those connections.

The developing countries, especially in the Balkans, barely use the municipal bonds as an alternative way of financing their activities. This paper is part of the project “The municipal bonds as an alternative source of financing municipals activities and the effective management of funds, with a special emphasis to the Municipality of Stip, R. Macedonia”. The paper has an important impact, according to both academic and practical perspective. It combines the experts’ academic analysis with the municipals potential in order to facilitate a successful municipal bond emission that would support the local economic growth. The purpose of this paper is to investigate the ability and willingness of the Municipality of Stip to issue municipal bonds. The main hypothesis states that the Municipality of Stip is able to issue a municipal bond as an alternative way of financing its investment activities. The research includes the classical SWOT analysis regarding the Municipality of Stip and continues with a statistical analysis based on correlation and regression relationships within the accounts of the Municipality’s annual reports. The methodological framework is based on quantitative research methods (correlations and regression methods) which result in acceptance of the main hypothesis in the paper - the municipal bonds as an alternative source for funding municipal’s activities are justified, especially if the funds are associated with a specific revenue-generating project. The findings would serve as a basis for the municipal bonds prospect, which would be the ultimate goal of combining the academic knowledge with the practical potential of the Municipality of Stip. The conclusions reveal that this would be the first municipal bond emission in the Republic of Macedonia. However, this fact can serve as an advantage in the market in terms of introducing financial instrument innovation. This paper suggests that the usage of municipal bonds is far away from a risky activity, especially if the funds are invested in revenue-generating projects. Municipal bonds can be a less expensive source of funds for the municipal’s projects, rather than different forms of domestic or foreign borrowings. In this way, municipalities can use this financial instrument to initiate and support local economic growth.

The justification of all the theoretical knowledge in this book is verified through the evaluation of the brand, which is analyzed in this chapter. Gradually, we fully complete the concept: from idea to evaluation of the brand. The valuation of the brand through radical transparency is elaborated through several variants: the brand equity as a measure of the value of the brand, financial approaches to valuation of brands, integration of finance and marketing through the “best practice” approach for brand evaluation and the brand value chain. Thus, we conclude the efforts for the understanding, application and assessment of the brand equity as a source of competitive advantage through the prism of radical transparency.

This article reveals some major prospects and constraints of the Small and Medium Enterprises Sector from the East-Planning Region of the Republic of Macedonia. The economic profile presented here, only reaffirms its great significance for the overall condition of the regional economy as the numbers show that over 99% of all active enterprises from this region fall into this category. The analysis of the prospects and constraints is designed as a comparative study of the strengths, weaknesses, opportunities and threats gathered from the interviews conducted and the documents examined. It will provide further indication and a starting point for the following series of additional researches within the project named “Forms of finance of the growth of the small and medium-sized enterprises with a focus of the East-Planning Region in the Republic of Macedonia”. Specifically, the intention of the ongoing project which is internally funded by the “Goce-Delchev” University from Stip, is to identify the most dominant sources of finance, detect if they pose limitations for the SMEs, and promote some alternative and modern forms of finance. Also, the project will produce a proposal of a possible framework of enterprise policy intended for the policy makers and the other interested parties in this sector. During the assessment of the standard elements of this framework, a set of interacting measures will be recommended also, for the purpose of enhancement of the entrepreneurial environment. Nevertheless, the survey reveals that indeed, the financial problems are real and present for the small and medium firms, and that the traditional sources such as bank loans, do not match the growing needs for finance of these firms, not in a quantitative nor in a qualitative sense irrespectively. This gives only a further justification of the researching efforts we plan to accomplish amid the continuing project we are involved in.

This chapter analyzes the phenomenon of branding and the related process of creating new value, and thus a sustainable competitive advantage through recognition of the concept of radical transparency. The brand equity is a common denominator of all tangible and intangible resources of the company, the amount of its abilities, of any activity indicating a slightly higher value, any attempt to be better and to achieve more. Therefore, in addition the brand equity is elaborated as a source of value for the business. This chapter examines the role of brand equity in providing greater market share, creating entry barriers for new competitors, achieving production and market expansion, providing a price premium, attracting quality workforce, ensuring consumers loyalty and stimulating innovation. For the brand equity to truly provide value it should be more than the company's image or position of the product – the brand should be a unifying force across the company, providing the business with direction and purpose.

The focus of this paper is the analysis of the most important factors for SMEs’ performance, survival and growth in EU. The main objective is to consider what determines the potential failure of young companies to innovate and grow. The importance of new, young and thus often still small firms for innovations and growth is commonly claimed. Therefore, factors that would inhibit these small, young companies to achieve their goals can have a huge public impact. The research results show that the age of the firm (which reflects its reputation) is important to the degree to which the firm feels financially constrained. Also, finance barriers can be associated with the market failure. Risk and informational asymmetries create capital market imperfections and a firm’s lack of reputation and collateral become crucial elements. Conclusions reveal that the ability of SMEs to grow depends highly on their potential to invest in restructuring, innovation and qualification. All of these investments require capital and therefore access to finance. Recent policy initiatives aim at improving the financial environment for European entrepreneurial activity and more specifically to support newly-founded innovative firms in order to increase their global competitiveness and spur innovation. Key words: SMEs, financing, innovation, growth.

One thing is in common for all the textile companies in the Republic of Macedonia: they engage a good part of the working population across the country and realize signifcant foreign exchange inflows from their export activities. However, there is a general opinion that the textile companies rarely practice strategic planning. Their function is basically reactive to changes in the environment. The share of the textile industry in the creation of gross value added in the national economy is low. This paper is devoted to the analysis of the current competition and o$ers ways to create sustainable competitive advantage for companies in the textile industry. The textile company's competitive advantage is a common denominator of all the activities it performs. Therefore, the competitive advantage comes from those individual activities such as designing, manufacturing, marketing, distribution and sale of products or services. Each of these activities has contributed to the formation of the relative cost-position and the basis for differentiating products; and at the same time each activity adds value to the final product. The basic tool for the examination of all the companies’ activities and their mutual interaction and influence in creating the companies’ competitive advantage is the value chain. Its analysis is the research subject in this paper. The research results and findings suggest that textile companies should concentrate more on those activities that significantly contribute to strengthening its competitive advantage based on differentiation. The result would be higher added value, and the latter is the basis for higher profitability.

The aim of this paper is to examine current macroeconomic thought about economic and financial crisis. Since 1960’s two schools of thought are pre-dominant in macroeconomics Keynesian and neo-classical. Many authors from neo-classical economists such as Robert Lucas (1976), gave a critique to macroeconomic policy and characterize the existing macroeconomic models that relied upon historical aggregate data to design macroeconomic policy as useless. They couldn’t help to design a macroeconomic policy. Many authors point out on crisis as all bad things that could happen to good investors. Asymmetric information’s create agency problems between investors and firms. Asymmetric information’s can distort efficient investment choices (investors may choose less efficient projects). These may also, as a consequence increase monitoring costs, for the investors. This will also reduce netwelfare. Perhaps the paradox of developing countries, and industrialized economies commonly subsidize agriculture is the question that raised the most attention in this regard. Existing view in the macroeconomics is that more attention should be given on deviations from an established path of agricultural protectionism. In the past period over the years eloquent pleas were written by the agricultural economists for less government intervention in agricultural markets. While their arguments are persuasive, the demand for government intervention expressed through the political process remains strong. However, in conclusion on this part as a task of new agroeconomists is to look for new policy directions.