The importance of financial support for youth entrepreneurship in the Republic of Moldova

Abstract

Currently in the Republic of Moldova an increasingly important role is played by the development of small business in which the main advantages are provided to young entrepreneurs. The financial situation of the companies operating in the Republic of Moldova confirms a high degree of dependence on external sources of financing, and the smaller the size of the enterprise is, the higher the level of their dependence on external financing is. In this paper there have been examined the assets' sources of financing of companies operating in the Republic of Moldova, depending on the size of the business. The work is also based on the results of a survey conducted in the framework of the HEIFYE project in the Republic of Moldova aimed at improving the youth entrepreneurship environment, which in its turn underscores the importance of financial factors for business development. HEIFYE project studies have shown that for young entrepreneurs the funding issue is a priority in all the partner countries of the project: the Republic of Moldova, Ukraine, Armenia, Latvia, Georgia and Belorus. In this context, it is important to take measures to support young entrepreneurs, especially in financial terms.