THE ROLE OF COMMERCIAL BANK CREDIT POLICY IN FINANCING ENTREPRENEURIAL ACTIVITY

Abstract

Nowadays, the efficient utilization of financial resources plays a pivotal role in developing entrepreneurial activity and enhancing its significance within the economy. The ability of business entities to expand production capacities, adopt new technologies, create job opportunities, and adapt to market demands depends largely on their financial capabilities. Particularly for small and medium-sized enterprises (SMEs) facing capital constraints, commercial bank loans represent one of the primary external funding sources. Consequently, the credit policy of commercial banks serves as an essential economic mechanism in financing entrepreneurial operations.