CIP EU financial instrument for small and medium size enterprises

This paper presents CIP (Competitiveness and Innovation Programe) as a framework for gurantiee facilitiy for SMEs (Small and Medium Sized Enterprises) founded by European Community and European Investment Found. Small and Medium Sized Enterprises constitute the basis of the European economy. They play a remarkable role for regional adjustment to the economic globalisation for innovation, economic growth and employment within the EU. National and regional authorities have to ensure a favourable environment for SMEs, including innovative ones, by developing SMEs support programes and facilitating their access to finance. It can be a great opportunity for financing Serbian Small and Medium sized Companies in the future if the Goverment established appropriate intermediar institution. In that way Serbian SMEs will increasing their access to finance and risk capital which enables them to tap their growth and innovation potential and achieve competitiveness