Evolving Business Analytics of Capital Structure and Working Capital Optimization in Serbian MSEs

In Serbian medium-sized enterprises (MSEs) (2009-2018), the study found a 14.8% domestic capital decline offset by foreign capital inflows (p<0.05). With regional disparities, Šumadija achieved 17.34%*** foreign capital growth, South/East Serbia suffered a -7.13%*** domestic capital decline. Proximity to Belgrade, as the capital city, significantly correlated with financing success (β=0.42, p<0.1). Manufacturing dominated with 10.25%*** foreign capital growth versus agricultural slump (1.93% ns). WCM optimization yielded 24-day cash conversion cycle reductions and +1.7*** inventory turnover improvements in manufacturing. Simulations project 8-10% manufacturing growth with optimal WCM. Foreign capital's high variability (SD=6.42) exacerbated regional inequalities, particularly in Vojvodina (-1.28% foreign capital) versus Šumadija's exceptional performance. Findings show foreign capital mitigates domestic capital decline in certain regions while creating new spatial economic imbalances, necessitating regional policies accounting for sectoral composition and WCM infrastructure.