FACTORS INFLUENCING THE PROFITABILITY OF SMES FROM THE REPUBLIC OF SERBIA: FOOD INDUSTRY

Dragana Novaković; Dragan Milić; Mirela Tomaš Simin; Bogdan Jocic; Tihomir Novaković

doi:10.59267/ekoPolj2502409N

Authors

Dragana Novaković Assistant Professor, University of Novi Sad, Faculty of Agriculture, Trg Dositeja Obradovića 8, 21101 Novi Sad, Serbia
Dragan Milić University of Novi Sad, Faculty of Agriculture, Trg Dositeja Obradovića 8, 21101 Novi Sad, Serbia
Mirela Tomaš Simin University of Novi Sad, Faculty of Agriculture, Trg Dositeja Obradovića 8, 21101 Novi Sad, Serbia
Bogdan Jocic University of Novi Sad, Faculty of Agriculture, Trg Dositeja Obradovića 8, 21101 Novi Sad, Serbia
Tihomir Novaković University of Novi Sad, Faculty of Agriculture, Trg Dositeja Obradovića 8, 21101 Novi Sad, Serbia

DOI:

https://doi.org/10.59267/ekoPolj2502409N

Keywords:

Profitability, SMEs, food industry, panel regression analysis

Abstract

Drawing from an extensive literature review on the impact of microeconomic and macroeconomic variables on the profitability of food enterprises globally and within national markets, this research analyzes the performance of small and medium-sized food companies in the Republic of Serbia from 2014 to 2022. The objective of this paper is to analyze the influence of microeconomic and macroeconomic factors on their profitability. By applying panel regression analysis, the impact of various factors on profitability, measured by return on assets, was examined. The research findings indicate that both the current asset turnover ratio and the growth rate of gross domestic product exert a significant positive influence on the profitability of the examined enterprises, whereas factors such as indebtedness, average collection period, asset tangibility, and inflation demonstrate a significant negative impact.

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References

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