IMPACT OF BUSINESS MACRO ENVIRONMENT ON THE SMALL BUSINESS MANAGEMENT IN THE REPUBLIC OF SERBIA AND THE REPUBLIC OF NORTH MACEDONIA

Abstract

Based on the theory of small businesses and their practices, as well as the fact that the primary role in their operation is played by the management function, it is concluded that the key to the success or failure of small businesses is their management. However, small businesses management style is impacted not just by the manager/owner and the enterprise's resources, but also by macro-environmental factors, particularly those at the national level, that either have a direct or indirect impact on these businesses and their managers/owners.

Based on the preceding premise, the focus of this research is on the management of small businesses in two neighboring countries: Republic of Serbia and Republic of North Macedonia, i.e. its specific characteristics arising under the influence of national macro-enviromnetal factors. Specifically, the dissertation aims to reveal the characteristics of management within small businesses in both countries differentiated under the influence of the national macro-environment.

The research methodology includes PEST analysis of the national external factors, as well as empirical research of managers/owners of small businesses as an internal factor, with the aim of deriving a management model specific to the national environment in which they operate. A comparative analysis of the findings from the applied research procedures has also been conducted to verify that although we are dealing with the same domain - management of small businesses, national specifics, both in relation to macro-environmental factors and in relation to small business management, have their own influence on the process.

The results of this research will help to improve managerial practices in existing small businesses and serve as guidelines for prospective managers in successful businesses. In terms of policymaking, research results may persuade the governments of both countries to provide more effective support for small businesses.