SME sector development by improving financial support: Serbia compared to other SEE countries

Abstract

Expectations of the SME sector in Serbia are high but the position of this section of the Serbian economy is made difficult by numerous obstacles. The existing fiscal and administrative framework is not stimulating and there is a lack of adequate financial support. Therefore, it is necessary to provide a better business environment through access to financial resources, tax incentives, cheaper and faster start–up procedures, development of an institutional basis for representation of SME interests, and creation of educational and training programs for entrepreneurship. The most important financial institutions whose establishment and functioning should be encouraged are: investment companies, micro-finance institutions, venture capital funds, and local development and credit companies.