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The Government of the Republic of Serbia

In the service of citizens

No stable economy without small and medium-sized enterprises

Belgrade, 26 October 2005

Serbian Deputy Prime Minister Miroljub Labus said today that the economic activity of small and medium-sized enterprises (SMEs) has become one of the most fundamental forms of business in the region without which the economy cannot be stable.

Speaking at the regional meeting of the national coordinators of the European Charter for Small Enterprises in the Western Balkans and Moldova, Labus recalled that the aim of the Serbian government is to reduce the number of procedures and unnecessary bureaucracy that slows down the opening of new enterprises and the development of entrepreneurship.

Labus said that the Serbian government has created conditions for establishing small enterprises speedily and inexpensively, simpler “entry and exit” of business activities that now requires far less capital, adding that results are shown by the fact that in a period of nine months more than 7,500 SMEs have been established.

He said that such policies will enable not only speedy development of this sector but also help reduce unemployment, which is one of the biggest structural problems of Serbia.

According to Labus, a typical medium-sized enterprise, for which the regional market is an extraordinarily significant factor, should have approximately 100 employees, €10 to 20 million in investment and at least €5 million in export.

Labus said that the number of procedures required for external trade will also be reduced, the trade itself has already been liberalised and all quantitative limitations on it removed. He added that Serbia will move forward in the process of liberalisation after having concluded the Stabilisation and Association Agreement (SAA) with the EU.

Labus said that in order to further improve the business climate, the next priorities are to reform the trade system and reduce the number of permits and administrational procedures for obtaining permits to establish enterprises, as well as the reform of the justice system so that investors are better protected.

He said that the bilateral agreements that Serbia has signed with some neighbouring countries will be replaced by a universal one, thus unifying a market of 50 million consumers.