Entrepreneurial Framework Conditions for the SME Development in Serbia

The SME development in Serbia, like in the most of the Western Balkans countries, shows a significant improvement. Serbia has adopted the SME development policy which is in accordance with the EU policies and is actively engaged on improvement of the business environment in order to foster the SME further expansion. It has moved from the phase of formulating policy and defining strategic objectives to implementing policy, particularly in the field of start-ups, provision of business services and dissemination of information. Analysis of the current framework conditions for the SME sector, and its role and significance, demonstrate considerable enhancements in transition period. However, SMEs in Serbia still face numerous problems, that this sector encounters in its business operating. The analysis of business environment for SMEs in Serbia has been performed through consideration of poll survey Global Entrepreneurship Monitor (GEM) as well as annual reports „SME Policy Index 2007” and „SME Policy Index 2009” which show realized progress in application of the European Charter for Small Enterprises in the Western Balkans with special emphasis on Serbia. The most important findings in the paper suggest that, despite realized progress, business environment in Serbia is still under-stimulating for SMEs development due to certain limitations of legal, procedural and financial nature, whereby defined recommendations for improvement of framework for business operating of SMEs in Serbia have been formulated