The Role of Government Policies on Corporate Financing Conditions

  • Authors

    • Elmedina Shuajibi Faculty of Economics, AAB College, Pristina, Republic of Kosovo
    • Agim Beqiri Faculty of Public Administration, AAB College, Pristina, Republic of Kosovo
    • Rametulla Ferati Faculty of Economics, University of Tetova, Tetova, Republic of North Macedonia
    • Jeton Kelmendi Faculty of Public Administration, AAB College, Pristina, Republic of Kosovo
    • Venet Shala Faculty of Economics, University “Ukshin Hoti” Prizren, Prizren, Republic of Kosovo
    https://doi.org/10.14419/30ahd340

    Received date: April 28, 2025

    Accepted date: July 11, 2025

    Published date: August 28, 2025

  • Business Climate; Entrepreneurial Ecosystem; Mentoring Programs; Small and Medium Enterprises; Start-Up Development

  • Abstract

    This study aimed to analyse the role of public policy in the context of corporate finance, focusing on its impact on the development of small and medium-sized enterprises and venture capital. The objective was to identify key factors that enhance competitiveness and foster innovative activity. Quantitative methods of analysis were employed, enabling an evaluation of the effectiveness of state support programmes for start-ups. The results revealed that start-ups receiving government support exhibited a 30% higher growth rate and a 40% increase in innovation activity compared to those without such assistance. Furthermore, the study found that companies participating in state programmes were, on average, 25% more likely to successfully attract private investment. Additionally, 70% of start-ups with access to mentoring programmes and consultancy services reported improved business performance within their first year. The findings also demonstrated that integrating mentoring initiatives and sustainable practices into government programmes can significantly enhance the business climate and promote national economic growth. These results underscore the importance of refining government support schemes to improve their effectiveness and sustainability, which are critical for advancing entrepreneurship and innovation within the country. Overall, the study highlights the necessity of adopting a comprehensive approach to government policy to create a conducive environment for business growth and development. Such an approach should include fostering stronger collaboration between government agencies and the business community, incorporating modern technologies and management practices, and ensuring adequate funding and support across all stages of the enterprise life cycle.

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    Shuajibi, E., Beqiri, A., Ferati , R., Kelmendi, J., & Shala, V. (2025). The Role of Government Policies on Corporate Financing Conditions. International Journal of Accounting and Economics Studies, 12(SI-2), 52-60. https://doi.org/10.14419/30ahd340