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The aim of this paper is to analize the role and importance of financial and non-financial instruments of support ing the sector of small and medium enterprises (SMEs) in the Republic of S rpska (RS). For that purpose , in late 2013 and early 2014, there was conducted a quantitative research on a sample of 110 respondents on the whole territory of RS, with the aim of finding the answers to the following question : What is the reason that a large number of SMEs in RS fail to provide adequate financial and non-financial support to their business activity and what measures should be taken in order to improve the current situation? In order to specify the research problem, we ask ourselves if the existing instruments of financial and non-financial support to the sector of SMEs in the RS are sufficiently developed and accessible, as to contribute to the successful growth and development of the said enterprises ? We found that the above mentioned instruments of support to the SME sector in RS are not sufficiently developed. Respondents were acquainted with the sole instruments and models of financial and non-financial support that exist in RS. According to the results of the empirical research, we conclude that creating and mastering the models and instruments of financial and non-financial support to SME sector in the RS and providing the adequate business climate for their successful functioning, will increase the availability of favourable financial means for SMEs, as well as the possibility of using the positive aspects of clusters, guarantee funds, factorings and other forms of entrepreneurship infrastructure .

THE ANALYSIS OF FINANCIAL AND NON-FINANCIAL SUPPORT TO THE SECTOR OF SMALL AND MEDIUM ENTERPRISES IN THE REPUBLIC OF SRPSKA