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The Government of the Republic of Serbia

In the service of citizens

SME sector most vital in Serbia’s economy

Belgrade, 26 November 2009

Deputy Prime Minister and Minister of Economy and Regional Development Mladjan Dinkic today stated that SMEs are the most vital sector in the Serbian economy and must not be overburdened with red tape.

Opening the 8th international entrepreneurship fair “Base for Business", Dinkic recalled that the SME sector employs and sustains a million people in Serbia, adding that excluding the financial sector, 99% of the private sector are SMEs, contributing to 60% of the GDP.

The Deputy Prime Minister stressed that in the last four years this sector hired 200,000 people, noting that despite the crisis and lower budget revenues Serbia managed to avoid raising taxes.

He added that tax increases turned out to be a short-sighted strategy, therefore the government will not increase taxes next year in order to ensure better business conditions.

Dinkic stressed that reducing red tape would help companies save up to €200 million a year, announcing that next year the state will continue subsidising loans for company liquidity, as well as long-term investment loans.

The state will help companies to present their products at foreign trade shows and organise clusters, he added.

Director of the SME Development Agency Goran Dzafic said that this sector includes over 300,000 SMEs in Serbia, congratulating them for having survived a difficult year. He also specified that over 13,000 SMEs have been set up in 2009.

Dinkic also opened the Student and Youth Entrepreneurship Fair highlighting that the state will continue to encourage talented young entrepreneurs with favourable loans.

He recalled that around 3,000 start-up loans, totalling RSD 4 billion, have been approved from the Development Fund this year, which helped to employ 9,000 people.

The “Base for Business" fair, organised by the Agency for the Development of SMEs and Private Entrepreneurship and the Belgrade Fairgrounds, is being held on November 26–28 at the Belgrade Fairgrounds, under the slogan “The Road to Success”.