Business analysis of the financial support for organic production in Montenegro - Technological and organizational aspects

Abstract

This paper is exploring the importance of financial support for the development of organic production in Montenegro, based both on organizational and technological aspect. Empirical research as the base of this paper treats problems of financing this activity, the results showed that direct positive correlation exists between financing conditions and level of development of organic production, especially taking into account the use of contemporary technologies. Additionally, this is first field research of financing organic producers in Montenegro. The sample covered 18.6% of the total number of producers. One of the aims of this research is comparative analysis of financial support of international funds on one side and commercial banks on the other side. Namely, in modern business conditions imply the use of advanced technologies that require significant financial resources, therefore, financing conditions represent a critical factor of development of this area in Montenegro.