If Serbia is to continue with European integration, European policies related to the use of biofuels will have to be implemented. Directive 2009/28/EC implies 10% of biofuels in transport fuel by the end of 2020. Although the production and use of biodiesel is in line with the practice of developed countries, Serbia does not produce nor use significant quantities of this fuel. Based on the conducted analysis, it was established that Serbia has the potential to produce biodiesel by processing its domestic raw materials. The logical step, then, is to re-establish the domestic biodiesel industry. This paper presents and discuss important factors for biodiesel producers or / and investors, in an attempt to mitigate business risks or to provide a starting point in a search for ways to turn these factors into gains. The PESTLE framework was used for classification of these factors, on account of its common use in making strategic decisions.