Alternative forms of financing of small and medium sized enterprises for the purpose of strengthening competitiveness at the international level

The goal of this research is to indicate the importance and function that the alternative sources of funding SMEs have in the process of strengthening the competitiveness at the international level. The subject of the research is the analysis and the evaluation of the most frequently used sources of funding in SME sector in Serbia and possibilities of using their alternative forms such as Business angels (BA), Venture Capital (VC) and Private Equity Funds (PEF). The results of the research indicate that the alternative to the insufficiently intense efforts for ensuring conditions of using BA, VC and PEF, is the bankruptcy of SMEs, as in the prevailing market conditions they are financing the majority of their activities from the commercial banks loans