A QUALITATIVE ANALYSIS OF SUSTAINABILITY BARRIERS OF SMALL AND MEDIUM ENTERPRISES

Abstract

This paper presents the barriers for growth and development of small and medium enterprises in the Republic of North Macedonia. The internal, external, institutional and financial barriers faced by managers/owners of small and medium enterprises are analyzed. Barriers from the market and competitive environment are analyzed in the sector in which the company carries out economic activity; the degree of competition and strategic behavior of competing enterprises; range of growth support networks and alliances. The financial environment was analyzed by assessing the capability of the local financial system; methods of financing the business; availability and cost of capital and finance. Internal organizational barriers are explored by analyzing internal resources and capacities; growth barriers related to the whole problem of human resource management and conditions for employment and dismissal of workers; lack of qualified managers; absence of business skills. Social barriers were analyzed through the following aspects: social capital, trust and networking between entrepreneurs; degree of support or lack of local actors and agencies. Institutional barriers were analyzed by assessing the legislative framework; degree of corruption and bribery. For the needs of the research topic and the subject of the analysis in the paper, the data were collected by applying a qualitative research strategy and using an in-depth, semi-structured interview, purposefully created. A deliberate sample was designed, where the main criteria for identification and selection of potential respondents were: managers or owners in/of micro, small and medium enterprises, from different industries, operating within the Republic of North Macedonia. The analysis of the data is thematic and narrative, to illustrate the views and opinions / examples expressed by the respondents, quotes from the received answers are presented. The obtained results give us an in-depth overview of the barriers faced by small and medium enterprises in the external and internal business environment and they can be used as indicators for future development and risk forecasting. The conclusions provide an overview of the priority needs for improving the business climate in enterprises and the country that will enable the sustainability of small and medium enterprises that are an important factor for social development.