Economics and Management of SMEs

This subject enables students to understand the importance and role of small and medium-sized enterprises (SMEs) in economic growth and development of a country. The students will gain systematic knowledge of managing the processes within SMEs as well as analyzing the impact of external factors on growth and development of SMEs. The students will enrich theoretical knowledge, gained by studying Enterprise Economics and Entrepreneurial Economics in the first few years of study, with the conceptual knowledge of efficient and effective management of SMEs, and will acquire the necessary knowledge to continue their education at the second cycle studies.

Upon completion of this course the student will gain basic knowledge about entrepreneurship and management of small and medium-sized enterprises. In this way, the student will be able to find the optimal solutions in managing SMEs by applying the basic knowledge of economic theory and science on decision-making and will have a basic knowledge for further study of the theory of economics and management of small and medium-sized enterprises. The student will be able, independently and in a team, to analyze business problems and develop a business plan for each project in the company. The student will able to encourage and initiate innovations of product and process, and to commercialize them successfully.

Definition of small and medium-sized enterprises; The characteristics of small and medium-sized enterprises; Organizational-legal forms of small and medium-sized enterprises; Entrepreneurship in small and medium-sized enterprises; Starting a new business; Management of business functions in small and medium-sized enterprises. The role and models of financing of small and medium-sized enterprises (loans, leasing, factoring, business angels, venture capital funds, mezzanine financing, financing on the stock exchange); The role and models of non-financial support to small and medium-sized enterprises (commercialization of innovation, entrepreneurship education, institutions of entrepreneurial infrastructure: clusters, business incubators, technology parks, innovation centers).

Interactive lectures, i.e. systematic transfer of knowledge from the literature and practical examples. Illustrations and exercises that involve two-way communication, and students are invited to freely express their opinions on cases that will be discussed. The main form of work will be case studies as well as developing a business plan in a team of students for the selected business idea, or an independent preparation of scientific and research papers in the form of pre-exam papers. During the semester guest lectures and discussions with successful entrepreneurs and managers will be organized.

Colloquium I (0-20 points); Colloquium II (0-20 points); Final exam (0-50 points); Attendance (2point); Class activities (seminar papers, discussions, case studies) (0-8 points)

Petković, S.; Berberović, Š. (2013). Economics and Management of Small and Medium-Sized Enterprises. Principles and policies. Banja Luka: Faculty of Economics; Berberović, Š.; Jelic, M. (2006). Management of Small and Medium-Sized Enterprises. Banja Luka: Faculty of Economics; Hatten, T. S. (2012). Small Business Management: Entrepreneurship and Beyond. Fifth Edition. Mason, Ohio: South-Western Cengage Learning.