Development of SMEs and small farms in agribusiness in Serbia

Small and medium enterprises and small farms are recognized as important factors in the development of agribusinesses in the Republic of Serbia. The wealth of natural, human and material resources which have not been effectively exploited in agribusiness, as well as agribusiness’ significance in the economic development of Serbia are opportunities for SME development. Due to their national importance, this paper is about SMEs and small farms in agribusiness in the Republic of Serbia. Long-term inadequate agrarian policies in the agricultural sector have led to uncompetitive and inefficient agrarian production, decrease in the number of entities in agribusiness, small households, and insufficient government support in agribusiness development. This paper will present the current situation of SMEs in agribusiness and outline the problems threatening their development through a SWOT analysis. The SWOT analysis will showcase the strengths, weaknesses, opportunities and threats faced by agribusiness in the Republic of Serbia. In accordance with the results of the SWOT analysis, this paper will conclude with recommendations and suggestions to the government. Adopting these recommendations and suggestions would ensure that some opportunities in the agribusiness sector are transformed into strengths, and some existing weaknesses and threats are reduced or eliminated