The enterprise size and age as determinants of SMEs failure

Abstract

This paper presents an analysis of the failure determinants of small and medium enterprises in Serbia. The aim is to examine the relationship between size and age, and the failure of small and medium-sized enterprises. The analysis was performed on data from a survey conducted in Serbia in small and medium-sized enterprises during 2018 and 2019, which had financial difficulties and at some point ceased or dramatically changed the business operations. Separate statistical analyzes were conducted for the size of small and medium enterprises and the factors of failure, and for the age of enterprises, in order to determine the categories that are more sensitive to financial distress than others. The results indicate that enterprises in Serbia are differently affected by the financial crisis when looking at the size of companies, while attitudes about certain factors of failure do not differ. Further, in the case of the age of the enterprise, the results show that younger enterprises are more prone to financial crises and bankruptcy than more mature enterprises.