SKRIVENI POKRETAČI RAZVOJA MALIH EKONOMIJA
HIDDEN DRIVERS OF SMALL ECONOMY DEVELOPMENT

Author(s): Brano Markić, Marko Markić
Subject(s): Economy, National Economy, Business Economy / Management, Micro-Economics, Public Finances, Accounting - Business Administration
Published by: Finrar d.o.o Banja Luka
Keywords: small economies; hidden drivers of growth; entrepreneurship; economic policy;
Summary/Abstract: The relative position of economies in the global distribution of income is changing. The logical question is how can small economies progress in their relative position in generating and distributing income, how can they improve their relative position? The paper the reforeemphasizes and highlights the hidden drivers of small economy development that they can identify, activate and follow in order to improve their relative position in income distribution.Mathematical descriptions of economies based on assumptions and selection of the most important variables from the aspect of economic growth are described by growth models. Entrepreneurship in our time is an activity, a process, an invisible assumption and a driver of economic development. In the research methodology, the paper hypothesizes that entrepreneurship,measured by the rate of emergence (birth rate) of new enterprises and the growth of gross domestic product are significantly related. Based on empirical data for EU countries,this link exists, and can be interpreted as moderate. Gross domestic product growth and entrepreneurship are related, and their causal relationship has not been empirically determined.In addition to entrepreneurship, the paper emphasizes economic policy as another invisible, hidden, but important driver of economic development. Therefore, encouraging entrepreneurship through economic policy measures is another important invisible driver of economic growth.

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