The Analysis of Key Challenges and Constraints to the Stability and Growth of an Entrepreneurial Sector in Serbia

Abstract

Macroeconomic business conditions in Serbia are still quite unfavourable in the postrecession period. Data submitted by the Serbian Business Registers Agency show that the number of newly established entrepreneurs in Serbia, in 2010, is for the first time less than the number of those that have gone out of business over that year. These data were the basis for the analysis of constraints and factors that brought about this situation. The high mortality rate of entrepreneurial ventures indicates the presence of a large number of problems that limit the development of entrepreneurship in Serbia. A survey carried out on entrepreneurs and managers of small and medium enterprises (SMEs) by the Republic Agency for Development of small and medium enterprises and entrepreneurs (SMEEs) revealed key constraints for their expansion, such as: lack of financial resources, administrative obstacles, insufficient qualified labour, lack of information on markets and technologies, non-compliance with standards and other less significant issues. Therefore, the objective of the paper is to stress the influence of the major problems and restrictions to the development of the entrepreneurial sector in Serbia. Constraints to the growth of entrepreneurship are going to be perceived through the prism of (insufficient) financial investments that the government makes to overcome them. In addition, by statistical analysis methods, it will be tested whether and to what extent each of these factors affect the number of start-ups. Based on the results, certain recommendations to the economic policymakers will be given.

Developing a Model Based on Sustainable Development for Prioritizing Entrepreneurial Challenges Under a Competitive Environment

“…The results of the research are partially compatible with the analyses issued by other international researchers Brière et al (2015). demonstrated that financial and regulations are among the most critical challenges in South Africa Stefanovic et al (2013). showed lack of financial resources, administrative obstacles, insufficiently qualified labor, lack of information on markets and technologies, and non-compliance with standards are known as the major challenges in Serbia.…”

“…Dixit et al (2010) described how the new environment of globalization, deregulation and liberalization creates several challenges for entrepreneurial firms. The influence of the major problems and restrictions on the development of the entrepreneurial sector in Serbia is analyzed by Stefanovic et al (2013). An exploratory assessment model to gain the major factors that affect the success of international entrepreneurial projects is proposed by Brière et al (2015).…”

Study on Dynamics and Constraints of the Employment in the Serbian SMEs During a Crisis

“…After the subsidies for business improvement, the subsidies for job creation are the most needed form of public assistance for SMEs owners and entrepreneurs in Serbia (ibid.). The assumption of the dominant influence of the state financial incentives to the growth and development of the SMEEs and, consequently, to the growth of the employment in this sector, is confirmed in the earlier research of the authors (Stefanovic, Djukic-Ivanovic, Jankovic-Milic 2013). This study has shown that state subsidies for the self-employment (especially those provided by the National Employment Agency) are of the utmost importance for the creation of new jobs and, consequently, for an increase in employment.…”

Преференције Ка Сaмозaпошљaвaњу И Предузетништву У Републици Србији: Родна Анализа

“…They separate very different factors from external environment, which can be stimulus or limitation of entrepreneurial behavior. Some of the external factors which should be meet in literature are: the possibility of providing a start-up capital , presence of administrative procedures (Stefanović et al, 2013), market access (Fletcher, 2006), presence of information about market opportunities, standards and regulations and so on.…”