THE IMPORTANCE OF INNOVATION AND ITS FINANCING METHODS FOR SMES IN PODRAVINA REGION

Nowadays, in modern and turbulent business environment, it’s very hard for SMEs to prevail everyday challenges’ without introducing innovations in their business models. However, innovations are usually not cheap or easy to implement. Moreover, not all entrepreneurs have possibility and knowledge to access all possible ways of financing for SMEs innovations. Therefore, the aim of this paper is to examine how do SMEs use financing methods for their innovations in northern part of Croatia - Podravina region. An empirical research is conducted with intention to analyze how do SMEs finance their innovations and whether they use own ways of financing or some sort of EU funds or state agencies. It is very interesting to observe that majority of analyzed SMEs still use old-fashioned ways of innovations financing, even though there are very cheap and very assessable ways of financing at their reach.

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