SME · ENTREPRENEURSHIP AND COMPETITIVENESS FOR THE PERIOD FROM 2015 TO 2020 AND ... to SME needs...

Republic of SerbiaMinistry of Economy

Development Strategy& Action plan2015-2020

March, 2015

SME

2 |

Pursuant to Article 45 Paragraph 1 of theLaw on the Government(RS Official Gazette, No. 55/05, 71/05 - correction, 101/07, 65/08, 16/11, 68/12 – CC, 72/12, 7/14 – CС and 44/14),

Government hereby adopts this

STRATEGY FOR THE SUPPORT TO DEVELOPMENT OF SMALL AND MEDIUM-SIZED ENTERPRISES, ENTREPRENEURSHIP AND COMPETITIVENESSFOR THE PERIOD FROM 2015 TO 2020ANDACTION PLAN FOR THE IMPLEMENTATION OF THE STRATEGY FOR THE SUPPORT TO DEVELOPMENT OF SMALL AND MEDIUM-SIZED ENTERPRISES, ENTREPRENEURSHIP AND COMPETITIVENESS


OPENING REMARKS

The development of small and medium enterprises and entrepreneurs, which represent more than 99% of all business entities in the Republic of Serbia, is of vital importance for the recovery and development of Serbian economy, increase of employment and the improvement of living standards of citizens.

In March 2015, the Government of Republic of Serbia adopted The Strategy for the support to development of small and medium-sized enterprises, entrepreneurship and the competition for the period from 2015 to 2020, with an Action Plan, which determines the framework, goals, priorities and measures for improving the development of micro, small and medium enterprises and entrepreneurship in the next medium term period.

The Strategy with the Action Plan represents the first document in the last 30 years that clearly commits the Government to undertake specific activities in order to improve the business environment. During the drafting of the Strategy, the Ministry of Economy paid special attention to consultation process with all relevant stakeholders, primarily business representatives, as well as inter-ministerial consultation about all proposed priorities and measures. The goal of the Strategy is to advance the situation in key fields for entrepreneurship, such as business environment, access to finance, HR development, consolidation of sustainability and competitiveness of SMEs and entrepreneurs, access to new markets and development of entrepreneurial spirit, as well as women, youth and social entrepreneurship.

Successful implementation of the Strategy will result in increase in the total number of SMEs and entrepreneurs by some 35,000, and employees in SMEs and entrepreneurs sector by approx. 180,000 in 2020 compared to 2013.

The Strategy has been aligned with the EU policy in this area, defined by the Small Business Act for Europe. Two principles permeate the entire Strategy: “Think Small First” and the necessity to maintain continual dialogue and cooperation with representatives of SMEs and entrepreneurs about all issues relevant for their operation.

The implementation of the development policy of SMEs and entrepreneurs is characterized by complexity and multidimensionality, and the key for successful implementation of the Strategy, as medium-term framework of SMEs and entrepreneurship development in Serbia, shall involve commitment, good cooperation and coordination of all competent institutions.

MINISTER OF ECONOMY

Željko Sertić

ContentsDevelopmet Strategy1. STARTING BASIS 4

2. OVERVIEW OF THE IMPLEMENTATION OF THE STRATEGY FOR DEVELOPMENT OF COMPETITIVE AND INNOVATIVE SMALL AND MEDIUM-SIZED ENTERPRISES AND ENTREPRENEURSHIPS FOR THE PERIOD FROM 2008 TO 2013 8

3. STRATEGIC VISION AND GOALS 16

4. IMPLEMENTATION AND THE MONITORING OF THE IMPLEMENTATION OF STRATEGY 18

5. STRUCTURE OF THE STRATEGY 24

6. FINAL PROVISIONS 51

Action plan PILLAR 1: IMPROVMENT THE BUSINESS ENVIRONMENT 54

PILLAR 2: IMPROVMENT ACCESS TO SOURCES OF FUNDING 74

PILLAR 3: CONTINUOUS DEVELOPMENT OF 84 HUMAN RESOURCES

PILLAR 4: ENHANCING THE SUSTAINABILITY 90 AND COMPETITIVENESS OF SMEs

PILLAR 5: IMPROVEMENT IN THE APPROACH TO NEW MARKETS 106

PILLAR 6: DEVELOPMENT AND PROMOTION OF ENTREPRENEURIAL SPIRIT AND ENCOURAGING OF WOMEN’S ENTREPRENEURSHIP, YOUTH ENTREPRENEURSHIP AND SOCIAL ENTREPRENEURSHIP 116

6 |

Starting basis1Development of economy is a precondition to

achieve sustainable social-economic develop-

ment and successful completion of the process

of European integrations of the Republic of

Serbia, as its long-term competition is built on

private entrepreneurial initiative, knowledge

and on the implementation of state-of-the-art

technologies and innovations.

The Strategy for the support to development of

small and medium-sized enterprises, entrepre-

neurship and the competition for the period

from 2015 to 2020 (hereinafter referred to as:

Strategy) defines the framework, goals, priori-

ties and measures to improve the development

of micro, small and medium sized enterprises

and entrepreneurship in the coming medi-

um-term period.

| 7

1.1 STRATEGIC FRAMEWORK

The Strategy presents a part of strategic framework for the development of com-petitiveness of the economy of the Republic of Serbia and it is complementary to the earlier adopted documents in this field, primarily to the Strategy for development of industry of the Republic of Serbia for the period 2011-2020 (RS Official Gazette, No. 55/2011).

The subject of this strategy refers to the improvement of conditions for develop-ment and competitiveness of micro, small and medium-sized companies and enterprises (hereinafter referred to as: SMEs).

Since the policy of development of entrepreneurship and competitiveness includes elements of horizontal policy, particular areas of this strategy have been more or less en-compassed by other strategic documents, as it is the case with employment, development of human resources and business infrastructure. In these areas, the Strategy, starting from already specified strategic entries stated in previously adopted strategic documents, brings additional contents which are synchronized and present continuity against previously de-fined priorities.

The Strategy, within national strategic framework, replaces the Strategy for develop-ment of competitive and innovative small and medium sized enterprises for the period from 2008 to 2013, the previous strategic document, the validity period of which has expired. Both strategies share the common starting point, goals and principles and so the new strategy pre-sents logical continuation and the upgrading of the former policy in this area. In that way the conformity of a new strategic document with strategic and plan documents adopted earlier has been ensured.

The Strategy continues the policy of full respect and the application of all docu-ments that define the policy of the European Union (hereinafter referred to as: EU) in the area of entrepreneurship and competitiveness, primarily the Strategy Europe 20201 and Acts on small-sized enterprises. Measures for the implementation of priorities from these documents are a constituent part of action plans for the realisation of this strategy even in the events when they are not explicitly encompassed by its contents.

Principles of the Act on small-sized enterprises, presenting the framework of the policy of development of small-sized enterprises in the EU, are to a great extent encom-passed by the Strategy.

Starting basis

8 |

Act on small-sized enterprises STRATEGY

01 PRINCIPLE Pillar 3 Continuous development of human resources Dimension 1 Measure 3: Development of a system of informal education for the improvement of knowledge and skills Dimension 2 Measure 1: Introduction of entrepreneurial education in all levels of education system of The Republic of Serbia Dimension 2 Measure 2: Education and training of teachers for entrepreneurship

Pillar 6 Development and promotion of entrepreneurial spirit and the encouraging of entrepreneurship among women, youth and social entrepreneurship

Create an environment in which entrepreneurs and family businesses can thrive and entrepreneurship is rewarded

02 PRINCIPLE

Pillar 1 Improvement of business environment Dimension 1 Measure 1: Improvement of legal framework for the establishing, the operating and the closing of business entities

Ensure that honest entrepreneurs who have faced bankruptcy quickly get a second chance

03 PRINCIPLE Pillar 1 Improvement of business environmentDimension 1: Establishing of encouraging regulatory framework in accordance with demands and abilities of SMEs Dimension 3 Measure 1: Obligatory inclusion of industry representatives in the process of adopting regulations and public policies and the increase in predictability of changes of business conditions Dimension 3 Measure 2: Establishing of the Council for small and medium-sized enterprises, entrepreneurship and competitiveness Dimension 3 Measure 4: Analysis of the effects of regulations and the inclusion of the test of the effect on small and medium-sized enterprises

Design rules according to the “Think Small First” principle

04 PRINCIPLEPillar 1 Improvement of business environment Dimension 2 Measure 1: Amendments to the regulatory framework for arranging the implementation of administrative procedures in state administration organs, autonomous provinces and local self-governments Dimension 2 Measure 2: Continuation of operations regarding the improvement in electronic administration system Dimension 2 Measure 3: Establishment of one-stop shop for rendering as many services as possible

Make public administrations responsive to SMEs’ needs

Table 1 – Relationship between the Strategy and the Act on small-sized enterprises

Conformity of the Strategy for support to development of small and medium-sized enterprises, entrepreneurship and competitiveness for the period from 2015 to 2020 with the Act on small-sized enterprises is presented in the following table 1.

During the preparation of the Strategy, special attention is paid to the synchro-nizing with regional strategies referring to this area and the contribution to their imple-mentation, referring primarily to the Regional strategy for South East Europe growth and development 2020, and to the European Union’s Strategy for Danube region.

| 9

05 PRINCIPLE Pillar 2 Improvement of the access to sources of financing Dimension 3 Measure 3: Raising awareness among entrepreneurs and all other interested parties about availability and characteristics of non-banking financial instruments

Pillar 4 Strengthening sustainability and competitiveness of SMEs Dimension 1 Measure 3: Further development of business services for SMEs

Pillar 1 Improvement of business environment Dimension 2 Measure 5: Improvement of conditions for participation of SMEs in public procurements

Adapt public policy tools to SME needs

06 PRINCIPLE

Pillar 2 Improvement of access to sources of financing

Facilitate SMEs’ access to finance and develop a legal and business environment supportive to timely payments in commercial transactions

07 PRINCIPLEPillar 5 Improvement of access to new markets Dimension 2: Reduction and overcoming of technical obstacles to trade

Help SMEs to benefit more from the opportunities offered by the Single Market

08 PRINCIPLE Pillar 4 Strengthening of sustainability and competitiveness of SMEsDimension Measure 4: Further development and training for contingent and current entrepreneurs

Pillar 4 Strengthening of sustainability and competitiveness of SMEsDimension 3: Strengthening of innovativeness in SMEs

Promote the upgrading of skills in SMEs and all forms of innovation

09 PRINCIPLEPillar 4 Strengthening of sustainability and competitiveness of SMEsDimension 3 Measure 2: To improve support to highly innovative SMEs, eco-innovations, introduction of energy efficiency and efficient use of resources

Enable SMEs to turn environmental challenges into opportunities

10 PRINCIPLEPillar 4 Strengthening of sustainability and competitiveness of SMEsDimension 4 Measure 2: Creation of new value chains and the increase in the level of the finalization of products

Pillar 5 Improvement of access to new markets Dimension 1: Providing continuous support to SMEs for emergence on new markets

Encourage and support SMEs to benefit from the growth of markets

10 |

Overview of the implementationof the Strategy

for developmentof competitive and innovative small and medium-sized enterprises andentrepreneurshipsfor the periodfrom 2008 to 2013

2

In the Conclusion 05, No. 30-4430/2008-1, of

October 23, 2008, the Government adopted the

Strategy for the development of competitive and

innovative small and medium sized enterprises

for the period from 2008 to 2013 (“Official

Gazette of the Republic of Serbia”, No.103/08-

hereinafter referred to as: Strategy 08-13) with a

five-year Operating plan for its implementation

which presents strategic framework of the policy

for development of small and medium-sized

enterprises and entrepreneurships in Serbia in

the said period.

| 11

The Strategy 08-13 was based on 5 pillars that were including: the promotion of the entrepreneurship and the forming of new enterprises, the development of human re-sources for competitive sector of SMEs, ensuring several sources of financing for small and medium-sized enterprises (hereinafter referred to as: SMEs), encouraging competitiveness in this sector as well as the creation of a better legal, institutional and business ambience for SMEs in Serbia.

Implementation and the monitoring of the realisation of the Strategy 08-13 was based on annual action plans. The ministry in charge of industry operations, in associa-tion with other relevant authorities, prepared annual action plans and reports about their implementation that were delivered to the Government for the purpose of informing and perceiving of achieved results. The monitoring of the realisation of annual action plans was carried out on the basis of detailed quarterly reports on realised activities provided by institutions in charge, while the most important results were presented in annual reports. Around 30 institutions were included in the process of the realisation and the reporting about the realisation of action plans and good cooperation was established with them.

During the period of the implementation of the Strategy 08-13, starting from meas-ures and activities specified in the five-year Operating plan, 5 annual action plans were prepared and implemented, which did not include all measures and activities stipulated by the Operating plan. After analysing the execution of the Operating plan and annual action plans, by pillars, the following was concluded:

Within the first pillar of the Strategy 08-13 called “Promotion and support to en-trepreneurship and the establishment of new enterprises” the measures were undertaken with a goal to encourage entrepreneurship and to improve a support to development of new enterprises. When it comes to planned activities within Operating plan, around 80% activities are included and implemented through annual action plans. A measure for the improvement of tax system, stipulated by Operating plan, was not included and imple-mented through annual action plans in the said period. Within the promotion and the en-couraging of entrepreneurship, all events planned on annual basis are also organized with good response of participants. Most of the events were organized within the European SME Week which presents a promoting campaign that is being realised all over Europe with objective to promote entrepreneurship, and with the support of local institutions such as: National Agency for Regional Development (hereinafter referred to as NARD, Chamber of Commerce and Industry Serbia (hereinafter referred to as CCIS), Association of Business Women in Serbia (hereinafter referred to as: ABWS), etc.

A measure for the improvement of support to development of new enterprises pre-supposes activities of rendering services and financial support to beginners in business which were executed within planned periods of time. Within the measure of rendering loan support and grants of the state, during given five-year period, the following instruments played a sig-nificant role:: start-up loans of the Fund for Development of the Republic of Serbia (9.22 billion RSD of realised assets), subsidies for self-employment by National Employment Service (2.2 bil-lion RSD of realised assets), as well as grants by NARD for the beginners in business (around 31 million RSD for the period 2012-2013) and for the companies in early years of their operations (around 3.5 billion RSD in 2013). Statistical information about the forming of new business en-tities indicated that, before all, the financial support to beginners in business is insufficient and disadvantageous and that, for the purpose of its improvement, some measures should be tak-en for development of alternative sources of financing. Regarding the above stated, within the Operating plan and further in action plans, the activity for the development of law regulation is stipulated to arrange the financial support for enterprises in an early stage of development on the basis of investing in capital of enterprises. Within the mentioned activities, some progress

12 |

was made in 2013 because a draft law framework was made for the establishment of funds of venture capital following the proposal of the Ministry of Economy

Trainings for beginners in business as well as entrepreneurial education of young people were executed during the monitored period within planned activities and dead-lines, and the number of program trainings was increasing over the course of the years. The stated trainings should be continued in the coming period too, with an emphasis on their quality improvement, scope and availability.

Within the first pillar of Strategy 08-13, special attention was paid to women’s en-trepreneurship and a measure for drafting the program of financing women’s entrepre-neurship and mentors to women’s entrepreneurship was formulated. These measures were implemented in the given period by NARD, its mentoring program, and the Fund for Development of the Republic of Serbia (hereinafter referred to as: Fund for Development) a credit line for women’s entrepreneurship (59 million RSD of realized assets for the period 2012-2013), whereas the Ministry of Economy had a special program of support to projects of non-governmental organizations in 2013, including women’s entrepreneurship.

Within the second pillar of the Strategy 08-13 which is called “Improvement of hu-man resources for competitive sector of SMEs”, special attention is paid to the development of entrepreneurial education of young people in education system of the country and to the improvement of a system of business services to SMEs. When it comes to planned ac-tivities within the Operating plan, around 65% of activities were encompassed and carried out through annual action plans. Planned activities referring to the promotion of entre-preneurial education, integration of entrepreneurship into all school levels (test profiles in secondary schools that include the subject entrepreneurship and which have passed to a regular education system – 47 profiles in school year 2013/2014 have been increasing in number year after year) and the training of education personnel (implementation of ac-credited training programs).

An important activity of development of the policy of entrepreneurial education at the national level and the arrangement of legal and financial framework for encourag-ing various forms of entrepreneurial education (students’ companies) were not realized. Also, activities presupposed within this pillar that refer to the development of professional capacities in enterprises through professional practices in enterprises in the EU, as well as other activities within the measure of the improvement of productivity of labour force in SME, referring to regular analyses of demand for labour force in SME and the construction of a system for the issuing of recognized certificates on qualification, were not implement-ed wholly.

Within improvements of a system of business services for SMEs all planned activi-ties were implemented, in particular: the drafting and the implementation of a standard-ized set of services towards demand of the SMEs, the training and the certification of em-ployees in Accredited Regional Development Agencies (hereinafter referred to as: ARDA), as well as the certification of private providers of business services and the promotion of a standardized set of services. Through the program of the standardized set of services for SMEs, which was implemented by the Ministry of Economy and NARD, 62.2 million RSD were realized in the period from 2012 to 2013. There is a significant increase in the realiza-tion of these assets in 2013 against 2012 by 24%, which indicates the increase in demand for trainings and services that are rendered through mentioned program, and it says that its implementation should also be continued in the future. Also, over the given period, ARDA have increased in number too (a total of 14 in 2014), the certified providers of servic-es (total of 90 in 2013) and registered consulting companies (a total of 9 in 2013).

The third pillar of the Strategy 08-13 called “Financing and tax collecting in SME” presupposed measures the objective of which is to make loans to SMEs accessible under

| 13

advantageous conditions as well as the implementation of the training in the field of finan-cial management. The improvement in efficiency of tax administration was also encom-passed.

Considering planned activities within the Operating plan, around 35% of activities were encompassed and implemented through annual action plans. Most of activities from the measure that refer to the improvement of partnership between the banking sector and SMEs were not carried out. Also, activities regarding the establishment of legal framework to the forming of guarantee funds for local and regional development were neither en-compassed nor implemented within action plans. Activities from the Operating plan, that refer to fiscal enticing to investments in SMEs, were also not encompassed by action plans

Within the measure regarding better availability of loans to SMEs under advanta-geous conditions, relevant institutions were approving more advantageous financial as-sets to SMEs, in particular:

• Fund for Development, within a five-year period, around 34.6 billion RSD of long-term and short-term loans to SMEs were realised as well as additional 14 billion RSD of advan-tageous loans to SME in underdeveloped units of local self-government;

• Agency for insuring and financing exports realized 161.12 million EUR worth short-term loans to export companies, 13.09 million EUR of guarantees and it also concluded con-tracts worth 106.47 million EUR on the basis of the insurance against commercial risks. Also, it bought 115.2 million EUR high claims from 222 users;

• In 2013, the Ministry of Economy, in association with banks, realised a pilot program called “Program of support to small-sized enterprises for the procurement of equipment in 2013” through which financial support was provided in the amount of around 93 million RSD for investments in the development and procurement of equipment in small-sized enter-prises. During a five-year period, the Ministry of Economy approved grants for support to innovative and fast growing SME totalling around 190.6 million RSD.

• By implementing the Program of support to development of competitiveness of SMEs, NARD co-financed activities of enterprises regarding the improvement of their compet-itiveness with a total of 280.43 million RSD.

The program of subsidized loans by commercial banks for liquidity and invest-ments that SMEs could also apply for were of special importance, especially at the begin-ning of global economic crisis.

Through support programs of the Ministry of Economy and NARD trainings were carried out in the field of financial management for business owners and managers as well as specialized trainings for managers and employees.

In the field of improving efficiency of tax administration, activities suggested with-in action plans of the Strategy 08-13 were implemented through intensive trainings of tax administration employees and tax payers as well and also through ensuring electronic communication with Tax Administration.

The fourth pillar of the Strategy 08-13 is called “Competitive advantages of SMEs on export markets” and it was encompassing the following areas: support to innovations; qual-ity standards and controls; support to clusters and support to export. Regarding planned activities within Operating plan, around 70% activities were encompassed and implement-ed through annual action plans. Certain activities of the Operating plan referring to fran-chise, as a model of business connections among SMEs, were not included in action plans. Also, the measure of reducing financial and administration barriers, regarding the export of SMEs, was not implemented through action plans during the monitored five-year period.

14 |

Within the field of support to innovations, a support for the financing of innova-tion projects of SMEs was improved. The Ministry of Education, Science and Technologi-cal Development (hereinafter referred to as: MESTD) was encouraging innovative projects through the program of support to innovative activities (150 million RSD was allocated from the budget in 2013). Fund for Innovative Activity was founded, establishing two new support programs through the Project of support to innovations in Serbia, which is financed from the National program of the EU Instrument for Pre-accession Assistance (hereinafter referred to as IPA) for year 2011. Within the Program of early development, 21 projects were supported in 2013, amounting to 723,753.91 EUR, and through the Pro-gram of co-financing innovations, 10 projects were supported in the amount of 640,421.67 EUR. Activities regarding the promotion of innovativity through events organized by CCIS, Fund for Innovative Activity, NARD, etc were continued. With objective to support inno-vations, within action plans, activities to encourage participation of SMEs in international innovative and research and business programs /networks were envisaged, such as: Com-petitiveness and Innovation Framework Program (CIP), EU Program “Eureka” and the 7th Framework Programme (FP7).

Regarding support to exports, in the given five-year period, Serbia Investment and Export Promotion Agency (hereinafter referred to as: SIEPA) was implementing the Program for Encouraging Competitiveness and Internationalization of Serbian Economy and in the stated period it supported enterprises and business association in the amount of 506.4 mil-lion RSD. Also, group performances were organized at fairs and the event “Exporter of the year” was organized regularly. Within this area, the plans involved the activities regarding the research of target markets and share of local companies at international fairs, the organizing of visits of exporters in branches with highest exporting possibilities as well as the organizing of visits of foreign investors. These activities were implemented by SIEPA in the given period with the support of the CCIS, and the poorest results were achieved in collecting information about target markets.

Within activities of support to clusters, the Ministry of Economy, and later the NARD, realized the Program of support to development of innovation clusters in the total amount of 113.6 million RSD for the given five-year period.

Regarding quality standards and control, action plans of the Strategy 08-13 en-compassed activities of strengthening institutional capacities with objective to synchro-nize Serbian standards with ISO and other international standards, the improvement of institutional infrastructure for support to product quality, the promotion of the use of CE marking and international standards, the rendering of direct support to SMEs for the im-plementation of quality standards, as well as for the certification, etc. All stated activities were implemented in the given period, while respecting projected deadlines.

The Fifth pillar of the Strategy 08-13 was called “Legal, institutional and business en-vironment of SME in Serbia” and it encompassed the activities of establishing legal frame-work to encourage the development of SMEs, efficient public services for SMEs and the development of regional infrastructure for support to SMEs. Out of all planned activities within the Operating plan, around 75% of activities were encompassed and implemented through annual action plans. A measure of the Operating plan, regarding the contribution to the improvement of operations of courts, arbitrage and other independent organs and bodies, has not be implemented in the major part.

Within the establishment of a legal framework that is encouraging the develop-ment of SMEs, the activities of “Comprehensive reforms of regulations” (hereinafter referred to as: CRR) were envisaged and implemented, yet not fully. The progress was achieved with respect to the Analysis of effects of regulations. Current laws were for the major part amend-ed and the new ones were adopted, for the purpose of improving business environment,

| 15

such as: Law on deadlines for settling monetary liabilities in commercial transactions (RS Official Gazette No. 119/12), Audit Law (RS Official Gazette No. 62/13), Accounting Law (RS Official Gazette No. 62/13), Factoring Law (RS Official Gazette No. 18/2010, 101/11,119/12, 47/13, 108/13, 68/14– other law and 142/14), Amendments to the Law on tax procedure and tax administration (RS Official Gazette No. 20/09, 72/09 – st. law, 53/10, 101/11, 2/12 - corrig, 93/12, 47/13, 108/13, 68/14 and 145/14).

Within the area of efficient public service for SMEs, one-stop shop system of reg-istering companies was established and it makes possible for companies that are regis-tered with the Business Registers Agency to be assigned the registration/company reg-istration number along with the registering, which is assigned by the Republic Statistical Office, and the tax identification number (TIN) which is assigned by Tax Administration. Since 2013 and the establishing of a Central Register of obligatory social insurance Busi-ness Registers Agency for entrepreneurs also applies for insurance with relevant health insurance and pension disability insurance funds as well as the insurance in case of un-employment.

The Central mortgage register within Real Estate Cadastre was established with access to information and possibility to submit applications over the internet.

Development of regional infrastructure for support to SMEs presupposes activities for establishing the coverage of the entire territory of Serbia with ARDA network and the increase in capacities of employees in ARDA. NARD was implementing activities regarding the accreditation of regional development agencies, trainers’ practices for training mod-ules from standardized set of services, and in offices for local economic development train-ings of employees by NARD methodology were carried out.

2.1 PREVIEW OF DEVELOPMENT OF SMEs SECTOR

SMEs sector operates under such conditions when the entire economy of Serbia is still characterized by slow recovery of economic activity after many years of recession caused by global economic crisis. Though a tendency of low inflation rates was established in 2013, macroeconomic ambiences is still characterized by a high level of foreign and public debt, conditioned by high budget deficit as well as the insufficient scope of investments, especially foreign direct investments, fluctuations of the foreign currency exchange rates and unem-ployment at high level. Challenges to further development of private and entrepreneurship sector still exist in the domain of legal framework and business security and unfavourable effects on local economy result in the decline in local demand and the slow recovery of econ-omies on major Serbian export markets. Serbian enterprises are substantially loaded with liquidity problem which, along with bad corporate loans at high level entices additionally high interest rates. Special obstacle to development of SMEs sector is a still high share of grey economy.

Though in years prior to economic crisis, the SMEs sector there was a positive growth tendency of basic business indicators, the dynamics of the increase in the level of develop-ment and the competition was stopped after 2008 and positive results recorded over the course of several pre-crisis years were annulled to great extent.

Positive tendencies regarding the recovery of business activities were recorded in 2013, primarily due to the increase in export of automotive industry, but this tendency was limited to several business segments with fewer number, mostly big, business entities, where-as the SMEs sector recorded the results that were worse than in 2012.

16 |

However, even under such difficult economic conditions, the SMEs sector kept a relatively high share in 2013 in the forming of basic business indicators in non-financial sector of economy of Serbia: it generates around 2/3 of employment and trade, 54.1 % of gross value added (hereinafter referred to as: GVA) and it has a 43.2% share in exports of non-financial sector. It is estimated that in 2013 the SMEs sector, which contributes with 99.8% in total number of business entities, had a 34% share in gross domestic product (hereinafter referred to as: GDP) of the Republic of Serbia.

Observed by size and structure of the SMEs sector, the most numerous are micro enterprises and entrepreneurs with a 96.3% share in total number of SMEs. Relatively low average number of 2.4 employees per business entity indicates one of key weaknesses of the SMEs sector against the EU member countries where that average amounts to 4.2. Aver-age values of other business indicators expressed per employee are also substantially lower against the EU average, and this all indicates a too broad subdivision and poor competition among SMEs in Serbia.

Concentration of SMEs by sectors is not changed significantly over the course of years: the concentration in non-trade sectors is dominant and one in three enterprises or en-trepreneurs from SMEs operate in the field of retail and wholesale trade, followed by services and processing industry. When it comes to the structure of SMEs in the processing industry, business entities operating in low technological areas are dominant with products of small added value and differentiation which results in their weaker position on the market and low price and profit margin.

SMEs in Serbia are not still enough turned towards export. Exporters have only 4.3% share in total number of SMEs and the share of exports in trade amounts to only 9.1%. Despite more dynamic increase in exports over past few years, export per employee is lower by 1/3 against the average of the non-financial sector.

Great misbalance in achieved level of economic development in the Republic of Ser-bia reflects in the allocation of numerousness and result of SMEs. Development rate of SMEs by areas in Serbia measured by GAV as indicator per employee indicates that the ratio be-tween areas with the highest (Belgrade City) and the lowest value of indicators (Pčinj region) amounts to 2.3:1.

| 17

2.2 ANALYTICAL BASIS

Information and recommendations contained in reports of local and international in-stitutions as well as information collected through dialogue with business people are used for the preparation of the Strategy. The most important reports used are: World Bank’s Statement on Operations in the Republic of Serbia (Doing Business 2015: Understanding Regulations for Small and Medium Size Enterprises), Statement on global competition at the World Econom-ic Forum (The Global Competitiveness Report 2014 - 2015), White Book of Foreign Investors’ Council, Grey Book of the National Alliance for Local Economic Development (hereinafter referred to as: NALED), the study on Financing growth of small and medium-sized enterpris-es – Key questions and recommendations for Serbia in the Business Enabling Project (USAID BEP), Business survey: Serbia 2013 Business Enabling Project (USAID BEP), Report by OECD оn financing small and medium-sized enterprises and entrepreneurship for year 2013 and annu-al national reports on small and medium-sized enterprises and entrepreneurship, as well as research on state of affairs, demands and problems in SMEs that are implemented by NARD. Special attention is paid to the inclusion of recommendations contained in annual reports of the European Commission and the progress of the Republic of Serbia and the Index of policy of SMEs in the Western Balkans, released by OECD. Recommendations of businesspeople that were identified during the dialogue with them within the campaign “You may speak – be a part of solution” were also used.

2.3 LEGISLATIVE AND INSTITUTIONAL FRAMEWORK FOR DEVELOPMENT OF SMEs

In the earlier period significant legislative and administrative reforms in the Republic of Serbia were either implemented or started and they are to ensure more advantageous conditions for the functioning of market economy, including development of entrepreneur-ship. However, this has not resulted in satisfactory outcome and it is necessary in the coming period to intensify the operations regarding the improvement of business conditions.

At the same time, in addition to amendments to regulatory framework, for the pur-pose of ensuring legal safety in operations of SMEs, it is necessary to improve significantly the operations of courts.

Institutional support to the sector of SMEs, which has been built since 2002, has been constantly improved, with the strengthening of capacities of institutions on national level and the ARDA network on regional level. The strengthening of institutions for support to SMEs will be continued in the coming period too. The most important institution dealing with the implementation of the policy of development of SMEs through direct support to enterprises is NARD with ARDA network. Support to the financing of SMEs sector is ren-dered by the Fund for Development and the Export Credit and Insurance Agency of the Republic of Serbia (hereinafter referred to as: ECIA). Important institutions in the system of rendering direct support to SMEs are also the SIEPA, in the domain of internationaliza-tion, the Ministry of Education, Science and Technological Development and the Fund for Innovative Activity, in the domain of support to innovative enterprises and the National Employment Service in the domain of support to self-employment and new employment.

Significant support and the increasing activity regarding the improvements in the sector of small and medium-sized enterprises and entrepreneurship is traditionally provided by CCIS.

18 |

3 Strategic vision and goals

Development of entrepreneurship

and competitiveness, based on

private entrepreneurship initiative,

knowledge and innovation, for

the purpose of strengthening

local micro, small, medium-sized

companies and entrepreneurs to

such extent that would be enough

to respond readily to the pressure

of the competition on the joint

market of the EU and to contribute

to improvement of the living

standard in the Republic of Serbia.

| 19

STRATEGIC GOALS SPECIFIC GOALS

1 Improvement of business environment

1.1. Establishment of stimulating regulatory framework in accordance with demands and abilities of SMEs

1.2. Improvement of efficiency of the implementation of administrative procedures

1.3. Increase in transparency of the process of adopting rules and public policies

2 Improvment access to sources of funding

2.1. Improvement in the quality of offer of the banking sector to SMEs

2.2. Development of new financial instruments

2.2. Improvement of ability of SMEs to access various sources of financing

3 Continuous development of human resources

3.1. Improvement in the quality of labour force

3.2. Support to development of education for entrepreneurship

4 Enhancing the sustainability and competitiveness of SMEs

4.1. Improvement in efficiency of institutional support to operations and development of SMEs

4.2. Optimisation and improvement in the level of utilization of current business infrastructure and the development of a new one

4.3. Strengthening of innovations in SMEs

4.4. Encouraging business associations and the creation of value chains

5 Improvement in the approach to new markets

5.1. Ensuring continuous support to SMEs for approach on new markets

5.2. Reducing and overcoming technical obstacles in trade

6 Development and promotion of entrepreneurial spirit and encouraging of women’s entrepreneurship, youth entrepreneurship and social entrepreneurship

6.1. Improvement in statistical monitoring and research about entrepreneurship among women, young people and social entrepreneurship

6.2. Politics and instruments of support to women’s entrepreneurship, entrepreneurship of young people and social entrepreneurship

3.2 STRATEGIC GOALS

Table 2 – Goals of the Strategy

20 |

4 Implementation and the monitoring of the implementation of Strategy Implementation of the Strategy

will be based on annual Action

plans that will be prepared in

collaboration with all relevant

state institutions and through the

dialogue with private sector.

| 21

4.1 IMPLEMENTATION OF STRATEGY

Implementation of the policy of development of SMEs is characterized by com-plexity and multidimensionality as a precondition to respect the principles of sharing ac-countability among relevant responsible institutions and to their coordination. Another important principle refers to the necessity for constant dialogue, inclusion and coopera-tion with representatives of SMEs sector, professional and broader public. Relevant min-istries and state administration organs are in charge of the implementation of measures stipulated by the plan within the scope of their competence.

For that reason, directly following the adoption of this strategy, the Council for small and medium-sized enterprises, entrepreneurship and competitiveness (herein-after referred to as: Council) is to be formed as an occasional Government’s work body the members of which are representatives of relevant ministries, as well as representatives of industry and other interested parties. The primary task of the Council will be to super-vise and coordinate the implementation of the Strategy. For the purpose of performing professional tasks, a special expert group is supposed to be formed within the Council the operations of which will include representatives of ministries, other state organs, or-ganizations and institutions, as well as representatives of business associations, financial institutions, international organizations, donors, academic communities, professional and non-governmental organizations and experts. Administration-technical operations to meet demands of the Council will be performed by the ministry in charge of economic affairs in association with the Republic Secretariat for Public Policies (hereinafter referred to as: RSPP).

Ministry in charge of economy is in charge of operational monitoring of the im-plementation of the Strategy, in association with the Council.

Ministry in charge of economy will be reporting on quarterly level the Council about the progress regarding the implementation of the Strategy, namely the realization of the Action plan. Also, the Council is supposed to submit a report on annual basis re-garding the realization of the Strategy to the Government of the Republic of Serbia.

GOVERNMENTOF THE REPUBLIC OF SERBIA

COUNCIL FOR SMEs AND COMPETITIVENESS

Strategic coordination

COMPETENT AUTHORITIES Quarterly reportingabout the implementation of activities

Reporting quarterly and annually

Reporting quarterly

MINISTRY IN CHARGE OF ECONOMIC

AFFAIRSTechnical

coordination

Chart 1 – Coordination of strategy implementation

22 |

CYCLE OF THE IMPLEMENTATION OF THE STRATEGY

PERIOD Activities prior to beginning of the period

Activities during and at the end of the period

2015 • Drawing up the Action plan for 2015, including projections for 2016.

• Quarterly reports on implementation

• Annual report on implementation

• Updating indicators





• Analysis of demand for auditing - (mid term external evaluation)

2017• Audit of the Strategy

(where appropriate)

• Drawing up the Action plan for 2017, including projections for 2018.

• Adoption of amendments to audited Strategy (where appropriate)








• Analysis of demand for auditing – (mid term external evaluation)

2019• Audit of the Strategy

(where appropriate )

• Drawing up the Action plan for 2019, including projections for 2020.

• Adoption of amendments to audited Strategy (where appropriate)




2020 • Drawing up the Action plan for 2020




• Valuing the strategy (Final external evaluation)

• Starting the procedure for drawing up of a new strategic document

Table 3 – Cycle of the implementation of the Strategy

| 23

In 2018, and even earlier, if necessary, the external evaluation of efficacy of the implementation of the Strategy will be carried out (mid-term external evaluation), and on the basis of these results, necessary correction measures will be undertaken.

Measures contained in plans for the implementation of the Strategy will be fi-nanced from the budget of the Republic of Serbia, assets provided by donors, before all through IPA, from assets provided by bilateral donors, as well as from international financial institutions, in accordance with budget restrictions. The ministry in charge of economy, in association with the ministry in charge of finance, is preparing annual review of financial assets and their sources intended for the implementation of the action plan for the coming period, and on the basis of the information provided by relevant minis-tries and other bodies the carriers of activities regarding the implementation of particu-lar measures from the action plan. The preparation of annual reviews of financial assets and their sources will be carried out simultaneously with the preparing of the budget of the Republic of Serbia for the next year.

Autonomous Province of Vojvodina and local self-government authorities can predict and finance the measures for the implementation of strategic priorities of this document from their own sources.

The most important identified risks regarding the implementation of the Strategy are the lack of financial assets, and the insufficient cooperation and coordination of rele-vant state authorities, organizations and bodies. The measure intended for avoiding risks that refer to the cooperation of relevant state authorities, organizations and bodies is to form a Council and the measure intended for avoiding, namely reduction of risks that refer to shortage of financial assets is to use assets from donations as much as possible.

In association with RSPP, the ministry in charge of economy will develop a sys-tem for monitoring the implementation of the Strategy, based on objectively confiden-tial indicators of efficacy that will be relying on official statistical data and information contained in international reports. For the purpose of monitoring the implementation of the Strategy, statistical and methodological monitoring of the state of affairs in the SMEs sector will be upgraded.

Basic indicators for monitoring the implementation of strategic goals are given in the table 4 - Indicators for monitoring achievement of strategic goals.

24 |

Review ofmost important

indicators for monitoring achievement of strategic

goals

Last available information 2020 Sources of information

GENERAL INDICATORS

TOTAL NUMBER OF SMES 315.412 (2013) 350,000

Report on small and medium-sized enterprises (Republic Bureau of Statistics of the RS)

TOTAL NUMBER OF EMPLOYEES IN SMES SECTOR 768.550 (2013) 950,000


REAL AVERAGE ANNUAL RATE OF GVA GROWTH IN SMES SECTOR

(2008-2013)-3.5%

(2015-2020)3.0% ±1

Derived indicators (Republic Bureau of Statistics of the RS)

IMPROVEMENT IN BUSINESS ENVIRONMENT

RANKING OF THE REPUBLIC OF SERBIA IN THE WORLD BANK’S DOING BUSINESS REPORT

91 (2015) Among top 60 World Bank’s Doing Business Report

RANKING OF THE REPUBLIC OF SERBIA BY GLOBAL COMPETITIVENESS INDEX OF THE WORLD ECONOMIC FORUM

94 (2014-2015) Among top 60 Global Competitiveness

Index

Table 4 – Indicators for monitoring achievement of strategic goals

| 25

IMPROVEMENT IN ACCESS TO SOURCES OF FINANCING

AVAILABILITY OF FINANCIAL SERVICES RESULTS/RANKING

Ranking 98/144 (2014-2015) Among top 60 Global Competitiveness

Index

AVAILABILITY OF FINANCIAL SERVICES RESULTS/RANKING

Ranking 110/144 (2014-2015) Among top 60 Global Competitiveness

Index

CONTINUOUS DEVELOPMENT OF HUMAN RESOURCES

UNIVERSITY EDUCATION AND TRAINING

Ranking 74/144(2014-2015) Among top 60 Global Competitiveness

Index

STRENGTHENING OF SUSTAINABILITY AND COMPETITIVENESS AMONG SMES

REAL AVERAGE ANNUAL GROWTH RATE OF TRADE AMONG SMES

(2008-2013)-2.9%

(2015-2020)4.0%±1

Derived indicators (Republic Bureau of Statistics of the RS)

ANNUAL AVERAGE GROWTH RATE OF SME WITH PRODUCTION OR PROCESSING INNOVATIONS

10.1% (2013) 13% Innovation Union Scoreboard

ANNUAL AVERAGE GROWTH RATE OF SME WITH MARKETING OR ORGANIZATIONAL INNOVATIONS

11.7% (2013) 14% Innovation Union Scoreboard

QUALITY OF LOCAL SUPPLIERS Ranking 98/144 (2014-2015) Among top 60 Global Competitiveness

Index

IMPROVEMENT OF ACCESS TO NEW MARKETS

SHARE OF EXPORTERS IN TOTAL NUMBER OF SMES 4.3% (2013) 7%


SHARE OF EXPORTERS IN TOTAL NUMBER OF SMES 9.1% (2013) 14%


26 |

5 Structureof the Strategy

Improvment the business environment;

Improvment access to sources of funding;

Continuous development of human resources;

Enhancing the sustainability and competitiveness of SMEs;

Improvement in the approach to new markets

Development and promotion of entrepreneurial spirit and encouraging of women’s entrepreneurship, youth entrepreneurship and social entrepreneurship

1234 5 6

The Strategy determines the framework

of measures for the improvement of the

SMEs and the competitiveness in the

next mid-term period that is presented

by means of 6 pillars:

The beginning of each of the pillars gives a brief evaluation

of the current state of affairs and current problems in the area

that the pillar refers to. The framework of future activities for

each of the pillars is furthermore defined through measures

that are grouped in more dimensions of the strategic pillar.

| 27

Pillar 1

5.1 IMPROVMENT THE BUSINESS ENVIRONMENT

Reliable, predictable and clear legal and administrative framework of operations, ensuring legal safety and not posing unnecessary obstacles to operations, is of exceptional importance for economic growth because it affects directly the competitiveness, the level of investments and the dynamics of economic development.

Over past ten years, significant regulatory changes have been carried out in the Re-public of Serbia, the objective of which was to create an advantageous business ambience in favour of the development of economy and the acceleration of the economic growth. Comprehensive reform in regulations, conducted in the period from 2009 to 2011 has lead to the cancelling more than two hundred regulations and the reduction in administrative costs by 183.1 million euro a year, but over the same period of time, more than two thou-sand new regulations have been adopted, thus diminishing results of this reform to a great extent. Also, over 40 recommendations encompassed by the comprehensive reform of reg-ulations remained unimplemented while certain number of recommendations is still in the implementation process.

Company Law (RS Official Gazette No. 36/11, 99/11, 83/14 – other law and 5/15), which entered into force on February 1, 2012, has brought more novelties that have contrib-uted to the improvement in business ambience of business entities, such as: reorganizing of managing authorities and establishing of unicameral or bicameral system of manage-ment, where unicameral system optimized and facilitated the management in single-ele-ment companies and companies with small number of members. Also, the reduction of a monetary stake for the forming of limited liability companies is prescribed at the amount of 100 RSD.

Within measures for the improvement of business environment, in 2014, the fol-lowing laws were adopted: Law on Amendments to the Bankruptcy Law (RS Official Ga-zette, No. 83/14), Law on Amendments to the Labour Law (RS Official Gazette, No. 75/14), Privatization Law (RS Official Gazette, No. 83/14) and the Law on Amendments to the Law on Planning and Construction (RS Official Gazette, No. 132/14 and 145/14), which have con-siderably improved the framework of operations, and the Draft Inspection Oversight Law is also prepared and it is to encircle the plan for amending the legislation in 2015 which affects operations to a great extent. The Draft Inspection Oversight Law is to be adopted at the beginning of 2015.

Though significant progress has been achieved in the area of regulatory reform over past two years, it is necessary to continue operations of all regulatory bodies and other institutions for the purpose of removing administrative obstacles and cost effectiveness that positive regulations create in economy. It is also important to take account of effects of the implementation of regulations on operations of small-sized enterprises which are the most vulnerable part of economy and to adopt the principle “Think Small First” that the EU applies and recommends in member countries when preparing and amending the rules.

28 |

Within the regulatory reform it is necessary to improve the very process of the adoption of regulations in order to boost transparency and predictability of regulatory ac-tivities and to enable better inclusion of business entities and citizens in bringing into force new regulations. Regulatory reform is a permanent process which must be carried out on all levels of authority.

Successful regulatory reform presupposes successful implementation of adopted regulations and so in the coming period it is exceptionally important to put some extra effort in order to ensure efficient implementation of adopted regulations. The first step is a timely adoption of all acts necessary for the implementation of regulations. The amending of regulations must be accompanied by amendments to administrative procedures and the reform in state administration so the wanted results could be achieved and maintained. Also, it is necessary to strengthen capacities for the improvement of methodological and analytical bases that are necessary for the purpose of ensuring quality information for de-cision making as well as for the monitoring of the effects of the implementation of regula-tions and other measures that are implemented by relevant authorities.

The report of the World Bank about operations in the Republic of Serbia, the Global Competitiveness Report by the World Economic Forum, the Grey Book by NALED, the White Book by the Foreign Investors’ Council, as well as analyses of the USAID Project for better business conditions, CCIS and Union of Employers Serbia indicate the areas in which it is necessary to conduct the regulatory reform with a goal to improve business conditions, namely to simplify or cancel certain administrative procedures that may incur unjustifiable costs to economy.

Table 5 – Regulatory environment indices

Regulatory environment indices(Preview of indicators for

the Republic of Serbia from the Global Competitiveness Report 2014 -2015

of the World Economic Forum)

Position on the list

(144 countries)

Total grade (1-7)

Global Competitiveness Index 2014/201594th

(101st by Report for 2013/2014)

3.9

Administrative burden created by “Government’s” regulations 140th 2.2

Transparency of forming Government’s public policies 108th 3.6

Distribution of trade barriers 90th 4.3

Burden created by customs procedures 96th 3.6

Efficiency of labour-legal regulations 119th 3.73

| 29

Table 6 – Preview of indicators for the Republic of Serbia from the World Bank’s Doing Business Report in the Republic of Serbia for 2013 and 2014

Preview of indicators for the Republic of Serbia from

the World Bank’s Doing Business Report in the Republic of Serbia for

2014 and 2015

2014 Position on

the list (for 189 countries)

2015 Position on

the list (for 189 countries)

STARTING UP BUSINESS 63. 66.

OBTAINING BUILDING PERMIT 184. 186.

ELECTRIC POWER INSTALLATION 77. 84.

REAL ESTATE ENTERING INTO REGISTRY 48. 72.

LOAN APPROVAL 45. 52.

PROTECTION OF INVESTORS 32. 32.

PAYING TAX 162. 165.

INTERNATIONAL TRADE 94. 96.

IMPLEMENTATION OF AGREEMENTS 96. 96.

BANKRUPTCY 47. 48.

Total: 77. 91.

Dimension 1: Establishing a supportive regulatory framework in line with the needs and capabilities of SMEs

Priority of regulatory reform in the Republic of Serbia is to amend regulations that mostly have negative effects on business environment. Key measures refer to further im-provements in regulatory framework for bankruptcy through amendments to the law in that area, improvements in legal framework for companies, cooperatives and handicrafts, then improvements of regulations dealing with particular issues from labour-legal rela-tions, the implementation of the started reform of the system for the issuing of permits for building procedures, reform on inspection oversight and better coordination among various inspection services. It is necessary to monitor the implementation of adopted reg-ulatory frameworks and, where appropriate, to make some improvements.

Through the reform of regulations governing bankruptcy procedure, this proce-dure has been made more efficient and economical from the aspect of duration and costs of procedure. Additional improvements can be made by allowing licensed companies to perform operations of bankruptcy managers and through additional simplifying of procedures.

30 |

Further reform of labour legislation will be implemented with objective to improve conditions for starting new job vacancies. It is necessary to strengthen additionally the role and scope of relevance of labour inspections for the purpose of reducing black labour mar-ket. Also, it is necessary to continue with activities referring to reduction of excessive proce-dures that demand unnecessary administering for employers and which do not contribute to either productivity or control by state authorities, especially through support to com-plete establishment of operations of the Central Registry for obligatory social insurance.

It is necessary through amendments to the Company Law to improve the status and the position of business entities and their liabilities for the purpose of encouraging their increase in number.

It is necessary to implement actively the Law on Amendments to the Law on Plan-ning and Construction (RS Official Gazette. No. 132/14 and 145/14) and to adopt in timely manner all sub-legal acts and to synchronize “sector” regulations governing this area, for the purpose of reducing number of procedures and more efficient issuing of permits in building procedures.

Through reform of inspection oversight it is necessary to establish effective and clear system of inspection oversight the emphasis of which will be on preventive activities of in-spections and on establishing efficient system of coordination and control of operations of inspection services. This indicates primarily the adoption of a special law and accompanying sub-legal acts that are to govern the area of inspection oversight as well as synchronization of special regulations that are to govern the inspection oversight in particular areas with new legal framework

Within this dimension the most important sector-oriented problems are included that were identified during the campaign “You may speak – be a part of solution”, that was organized by the Ministry of Economy and CCIS in association with relevant ministries. Sec-tor-oriented approach to solving regulatory problems should contribute to the improve-ment of the ambience for operations and investments in particular business sectors.

Priority measures encompassed by this dimension of the Strategy are:

M1Improvment the legal framework for the establishment, operation and closing of business entities

M2 Reduction of tax and non-tax related obligations of the economy

M3The introduction of more efficient procedures for investments in construction and management of real estate

M4 Improvment the regulatory framework of inspection control

M5Improvment the legislative framework in the field of employment and employment rights

M6 Regulatory reform of sector regulations in the business of SMEs

M7Support for the implementation of regulatory reform at the provincial and local levels

| 31

Dimension 2: Improvment the effectiveness of the implementation of administrative procedures

Administrative procedures can be the cause of a substantial load to operations of SMEs and their simplification has been recognized as one of main goals of the Act on small-sized enterprises.

For the purpose of predictability of regulatory environment, it is necessary to specify an obligation that, with most frequent administrative procedures (issuing of various types of permits, authorizations, certificates or licenses), normative frameworks of service providing must be predicted so the time framework for decision making could be determined and objective, clear and transparent conditions for rendering services could be defined. In that way they will contribute to the equalizing of the practice of relevant author-ities, organizations and bodies when rendering service of the same kind. On the basis of administrative procedures systematized like this, it is necessary to start their optimization in terms of simplifying and eliminating unnecessary steps and costs.

Introduction of electronic services and one-stop shop system in as many areas as pos-sible (for permits to buildings under construction; registration and deregistration of employees; services of local self-governments in charge of economy), that may contribute a lot to the sim-plification and the acceleration of administrative procedures and the cost reduction as well, as it is one of significant measures of support and unloading SMEs. In the coming period it is nec-essary to continue with the construction of E-administration web portal which to encompass at one place all administrative procedures and applications that are applied by organs of state administration, territorial autonomy and local self-government. There is a substantial room for improvements in the domain o e-administration, especially if taking into account comparative data about development in this area against the countries from the region.

Table 7 – Preview of indicators about e-government

United Nations – Research on e-government 2014Preview of indicators for the Republic of Serbia from the Research on e-administration of

the United Nations for year 2014

Index of progress of e-administration

2012

Index of progress of e-administration

2014

Position on the world list 2012 (1 -193)

Position on the world list 2014 (1-193)

Serbia 0.6312 0.5472 51 69

Average of the region (SE Europe)

0.6574 0.6276 - -

World average 0.4882 0.4712 - -

For the purpose of monitoring the state of affairs in business environment and the results of regulatory reform, it is necessary to prepare standards and instructions and then to approach regular measuring of administrative load to economy.

It is necessary to enable a better approach of SMEs to public procurements, to im-prove their informedness on various aspects of participation in public procurement pro-

32 |

cedures and to reduce administrative obstacles for the participation of SMEs on tenders, among other things, by better use of opportunities of electronic public procurements.

Priority measures encompassed by this dimension of the Strategy:

М1Amendments to the regulatory framework governing the implementation of administrative procedures in state administration bodies, autonomous regions and local self-governments

М2 Continued work on strengthening the electronic administration system

М3 Establishing the one-stop shop system for the provision of as large a number of services as possible

М4 Monitoring the effectiveness of implementation of administrative procedures and measuring administrative costs of the economy

М5 Improvment conditions for the participation of SMEs in public procurements

Dimension 3: Increasing the transparency of the regulation and public policy adoption process

Active participation of representatives of economy in procedures of adopting regu-lations and acts presupposes timely availability of information, open dialogue and partner-ship of public and private sector in the creation of advantageous legal framework for doing business. For that reason the informing of business people about plans referring to chang-es of regulations affecting business environment and to establish an ongoing dialogue on all levels of organizing public authority with representatives of economy.

For the purpose of improving the dialogue with representatives of SMEs the estab-lishment of the Council has been envisaged as an occasional working body of the Govern-ment the operations of which will include the representatives of SMEs sector.

Systemic monitoring of effects of regulations that affect business ambience should be introduced through forming mixed work groups for the purpose of collecting necessary information for their improvement.

In addition to the stated, it is necessary to undertake measures aiming at improve-ments in the processes of changing regulations. Also, it is necessary to introduce the prin-ciple “Think Small First” through the introduction of a test of effects on small and medi-um-sized enterprises.


М1Obligation to involve representatives of the economy with the process of adopting regulations and public policies and increasing predictability of changes in operating conditions

М2Forming the Council for small and medium enterprises, entrepreneurship and competitiveness

М3Establishing a mechanism for monitoring the effects of the application of regulations that affect the business environment

М4Inclusion of tests of influence on small and medium-sized enterprises in analysis of effects of regulations

| 33

Pillar 2

5.2 IMPROVEMENTS IN ACCESS TO SOURCES OF FINANCING

In the Global Competitiveness Report of the World Economic Forum for 2014-2015 the Republic of Serbia is ranked 98 among 144 countries regarding availability of financial services, and it is ranked 110 with respect to their accessibility, and it is ranked even 121 and 132 with respect to approach to loans and availability of venture capital. These ratings are worse than ratings of most of neighbouring countries and this is a long-term tendency.

Financial market for small and medium-sized enterprises in the Republic of Serbia is characterized by deficit in opportunities to take start-up loans and loans for business enlargement. For the most part it consists of unfavourable loan offer of the banking sec-tor due to relatively high interest rates, high demands for collateral and lack of long-term loans, as well as insufficient significance of business plans when making decisions about loan approval. Newly formed enterprises/entrepreneurs are in most difficult position since the banks take upon themselves the highest risk with their financing.

Accessibility and availability of advantageous credit lines have been improved by offering credit lines secured by state guarantees such as Apex loans by European Invest-ment Bank. Loans of the Fund for Development, short-term loans, factoring, guarantees and insurance claims based on export operations provided by Export Credit and Insurance Agency (ECIA), as well as subsidized loans for liquidity, permanent working assets and in-vestments play an important role in that context.

However, there is still shortage of advantageous credit lines, especially to particular segments of SMEs. Fund for Development is almost the only one institution in the Republic of Serbia that was financing beginners in business through a credit line for newly formed enterprises.

Guarantees, as a very important instrument to facilitate the access to finances for SMEs through smothering conditions with respect to necessary security assets when ob-taining a loan, are insufficiently developed in the Republic of Serbia. Credit guarantees had a minor share in up to date portfolio of the Fund for Development and they were not in-tended to SMEs, whereas the offer through the Guarantee Fund of the AP Vojvodina was a bit more favourable. Local guarantee funds do not exist. Though the banks in the Republic of Serbia, through programmes that are financed by the EU, have an opportunity to ensure credit guarantees for existing credit lines intended to SMEs, there is a very poor interest and those funds are used insufficiently.

Financial instruments based on investments in the capital of enterprises are espe-cially important for innovative and fast growing SMEs, whether those are pure capital in-vestments or mezzanine investments that combine investments based on loans and those based on the capital. Though these enterprises have minor share in the SMEs sector, they are of key importance for insuring long-term competitiveness of the country, in market

34 |

segments in enlargement (e.g. Digital technology and information-communication tech-nologies). These financial instruments in developed countries have a very important role in the financing of SMEs but in our country they are still developing.

In developed countries funds of venture capital deal with financial instruments based on investments into the capital of enterprises. Venture capital presents a special type of equity that is invested in business entities in stages of forming, early development and expansion. Funds of venture capital are typically created in the form of a limited part-nership, a limited liability company or a joint stock company, they manage private capital of investors and invest it in the form of a share in the basis capital, namely stake capital of SME of high developmental capacity in stages of forming, early development and ex-pansion (hereinafter referred to as: venture capital funds). In the Republic of Serbia, apart from sporadic investments of venture capital funds that are registered abroad, there have been several investments of the European Bank for Reconstruction and Development via Local Enterprise Facility – LEF program as well as investments of Small Enterprise Assistance Funds (SEAF).10

“Business angels” deal with investing in the capital of possibly fast-growing enter-prises and those are physical entities investing their own private capital, knowledge and experience into young enterprises of high developmental capacity in early stages of form-ing and development in exchange for a stake in the share capital (hereinafter referred to as: Business angels)

The first network of business angels has been formed in the Republic of Serbia, Serbian Business Angels Network (hereinafter referred to as: SBAN), which is yet to be de-veloped and to start investing, as well as the Serbian Private Equity Association (SPEA).

Support to newly formed, innovative enterprises as well as the support for commer-cialization of research and further development of innovative enterprises, within grants, has been rendered since 2006 by the ministry in charge of education and science through programs of support by Law on Innovative Activity and through Fund for Innovative Activ-ity since 2012 as well within IPA funds, the implementation of which is under jurisdiction of the World Bank.

Micro-financing in the Republic of Serbia is poorly represented though it is an important alternative for economically poorest enterprises which can seldom meet con-ditions so they could be approved banking loans. Three organizations dealing with this business in the Republic of Serbia (Agroinvest, Fund for Micro Development and MicroFinS) are provided with financial support of international donors, and yet they cannot place the funds directly but over commercial banks, which makes the procedure more complex and makes these assets more expensive to end users. In EU countries this form of financing makes a substantial part of offer to micro and small-sized enterprises and also big funds for this instrument are paid from EU funds, e.g. through structural and cohesion funds within the program Joint Action to Support Microfinance Institutions in Europe (JASMINE).

Other alternative forms of financing, such as leasing and factoring, are also insuffi-ciently developed in the Republic of Serbia.

It is of crucial importance for stable development of entrepreneurship in the com-ing period to ensure a wide scope of various financial instruments that will enable SMEs to have access to the capital in a manner and under conditions matching the stage of the actual developmental cycle of the enterprise.

| 35

Dimension 1: Improvment the quality of the banking sector offer for SMEs

In Doing Business Report of the World Bank for 2015 (Doing Business 2015), the Republic of Serbia fell from position 45 to 52 when it comes to loan approval against the previous year.

Poor synchronization of products and services with demands of enterprises influ-ence poor demand for financial assets. On the other hand, high percentage of non-per-forming loans and weaknesses of executive procedure for collecting collaterals are some of the reasons why banks express little interest in financing SMEs. On the basis of a report Financing SMEs and Entrepreneurs 2013: Аn OECD Scoreboard by OECD, share of loans to SME in total loans in 2011 amounted to merely 28.9%. At the same time, interest rates on loans to SME were on average by 4% higher than interest rates on loans to large-sized enterprises.

For the purpose of overcoming limitations that affect poor loan offer in banking sector, activities will be focused on support to more efficient implementation of execu-tive procedure and bankruptcy legislation through strengthening human capacities and through establishing the profession of an assessor and on necessary improvements in out of court executions over pledges and the using of second and third rank mortgage.


М1 Improvment enforcement procedure

М2 Reform of regulations governing the area of real estate lien

М3 Develop incentive measures and mechanisms in order for the banking sector to increase crediting of SMEs

М4 Empowering specialized professions in order to obtain credible financial information in the loan approval process

М5 Improvment monitoring of the situation with financing of SMEs

Dimension 2: Development of new financial instruments

Despite unfavourable loan offer by commercial banks, guarantee schemes and oth-er alternative forms of financing have only begun to develop in the Republic of Serbia. In addition to first investments of venture capital funds and initial activities of SBAN, the development of the market of investing into equity and mezzanine financing is only at an early stage. In 2013 the Republic of Serbia was ranked 82 among 118 ranked countries by The Venture Capital and Private Equity Country Attractiveness Index 2014 Annual).

There is no legal framework for operations of micro-financial institutions and the scope of transactions in leasing and factoring operations is at low level.

Within the EU program for the Competitiveness of Enterprises and Small and Medi-um-sized Enterprises (hereinafter referred to as: COSME)12 and the program Horizon 2020 (hereinafter referred to as; Horizon 2020)13, there are special financial instruments in the field of loan guarantees and investments on the basis of the capital, that can also be used

36 |

by financial institutions from the Republic of Serbia, so they could offer better financing terms to their customers.

In addition, within the West Balkans Enterprise Development & Innovation Facility program (WB EDIF), which is intended to SMEs in the region for the financing of innovative business projects, 3 instruments are available to the Republic of Serbia: Enterprise Expan-sion Fund (hereinafter referred to as: ENEF) through which it is possible to ensure invest-ments in the capital of fast growing enterprises, Enterprise Innovation Fund (hereinafter re-ferred to as: ENIF) through which it is possible to ensure investments into venture capital for newly formed innovative enterprises and the guarantee scheme that can be used by banks.

In order to reduce difficulties that SMEs are facing with respect to approach to loans due to shortage of security instruments or due to increased risk of financing, it is necessary to keep on putting efforts in solving the problem of security instruments by adopting law regulations for the forming and the functioning of national, local and mutual schemes of loan guarantees and for development of national guarantee scheme.

For the purpose of developing the environment for investing venture capital, in-vesting in equity, mezzanine financing and investments of business angels in SMEs, it is necessary to ensure adequate legislation framework, to establish the basis of entrepreneur-ial projects that are suitable for investments on the basis of the capital and to establish a fund for joint investments with private funds into innovative enterprises. It is necessary to increase the utilization of funds from EU COSME and Horizon 2020 programmes and the West Balkans Enterprise Development & Innovation Facility program (WB EDIF) that are available to the Republic of Serbia.

Considering the fact that currently there is no legal framework in the Republic of Serbia for the realization of micro-financial support, activities in micro-financial sector are realized through guarantee deposit schemes so micro-financial sector provides guarantee deposits to banks. In this way the access to funds for micro-enterprises and entrepreneurs is more complex and expensive. That is why it is necessary to establish regulatory frame-work for the establishment and the operations of non-banking, non-deposit credit institu-tions that would specify the procedure of licensing and supervising all kinds of specialized credit institutions which do not receive citizens’ deposits.

Operations of leasing and factoring companies are governed by the law but with objective to increase the scope of transactions, it is necessary to remove regulatory limita-tions that they are facing with and to approach these sources of financing to SMEs.


М1 The development of new models of financing SMEEs

М2 Improvment the system of issuing credit guarantees

М3Creating conditions for entrepreneurship capital investment, investment in equity, mezzanine financing and investment of business angels in small and medium enterprises

М4Eliminating administrative obstacles and improving the regulatory environment for the establishment of micro-financial support

М5 Improve the conditions for the use of leasing and factoring by SMEs

| 37

Dimension 3: Improvment the ability of SMEs to access various sources of funding

More than a half of enterprises in the Republic of Serbia use their own assets as the most significant source of financing. For most of enterprises banking loans are the only outer sources of financing. However, SMEs are facing with high price of loans and with the lack of long-term sources of financing as well.

There are also problems with respect to demand, considering still inadequate level of knowledge and capacities in the field of financial management in SMEs in the Republic of Serbia and also considering objective problems due to lack of required security instru-ments.

It is necessary to upgrade the collecting and the releasing of the information about financing SMEs and to provide support to SMEs to improve their awareness, technical and administrative capacities in order to facilitate the financing and to reinforce their negotiat-ing position against financial institutions. Measures will be focused on making state sup-port to the financing of SMEs more efficient.

It is necessary to implement long-term measures for rising awareness and the preparations of entrepreneurs, business people, financial mediators and advisors for bet-ter utilization of alternative sources of financing, by intensifying the training in the field of investment readiness for enterprises and by getting introduced to specifications of in-vestments on the basis of the capital, by organizing meetings of contingent investors and the SMEs, by improving awareness about various available sources of financing and their specifications and by encouraging financial mediators to use financial instruments that are available through EU programs (COSME, WB EDIF, Horizon 2020).


М1 Improvment the process of informing SMEEs on available sources of funding

М2Improvment the knowledge and skills of representatives of SMEEs in the area of financing

М3Raising awareness among entrepreneurs and other interested parties about the availability and characteristics of non-banking financial instruments

38 |

Pillar 3

5.3 CONTINUOUS DEVELOPMENT OF HUMAN RESOURCES

One of main preconditions for the development of competitive and strong economy is labour force that is professional enough, capable and skilled to respond to challenges and changes in the environment. For successful reforms in this area it is neces-sary to adjust strategic documents and legislative regulation in education.

Dimension 1: Improvment the quality of the workforce

Availability of skills and knowledge on labour market, that meet demands of econ-omy, are a prerequisite for economic growth, the growth of employment rate and social inclusion as well. Technological progress and structural adjusting of economy requires in-troduction of new education profiles that did not exist in education system of the Republic of Serbia before as well as constant improvements in knowledge, skills and attitudes in accordance with demands of modern industry the competitiveness of which is based on knowledge. For the purpose of creating good foundations for successful preparation of young generations, special attention should be devoted to development of eight key com-petences (knowledge, skills and attitudes) that have been recognized by the EU and which encompass ability for communication in the mother tongue, communication in foreign lan-guages, digital competence, analytical skills, learning to learn, social and civic competenc-es, sense of initiative and entrepreneurship and cultural awareness.

In addition to high unemployment rate, there is still discrepancy in the Republic of Ser-bia between supply and demand for labour force. Statistics indicates that pupils and students have a very low level of applicable knowledge and so, according to results of the Programme for International Student Assessment (PISA test) 2012, which is OECD’s international testing of abilities and knowledge of 15-years old students in the fields of mathematics, science and read-ing, the Republic of Serbia is under average in the said field. Also, according to latest report of the World Economic Forum, the Republic of Serbia is ranked very low by quality of education system (ranked 106 among 144) and by availability of training services (106 among 144).

In order to synchronize supply and demand for labour force and to reduce the un-employment rate in the country, it is necessary to improve mechanisms of monitoring and predicting demands of industry and synchronizing networks of vocational schools, educa-tion profiles, study programmes and enrolment policies for university studies in accordance with them, to include labour practice and practical work into teaching processes as much as possible and to include employers in the process of preparing educational programmes.

Through further development of a system of short trainings and prequalification and additional qualification programs for unemployed people, it is necessary to help the unemployed to get adjusted to labour market demands.

| 39


М1Development of mechanisms for regular monitoring and forecasting needs of SMEs for labor

М2 Harmonization of the formal education system and the labor market

М3The development of the system of informal education for the advancement of knowledge and skills

Dimension 2: Support to development of education for entrepreneurship

The EU has recognized a sense for initiative and entrepreneurship as one of eight key competences for lifelong learning. This key competence refers to the development of the ability to turn ideas into deeds and presupposes the development of attitudes (innovations, risk take-over, creativity), knowledge (planning and managing the enterprise) and skills (communica-tion, ability to work in a team, etc.). By introducing education for entrepreneurship in education system of the country, young people who decide in their lifetime to start their own business increase in number but, at the same time, all participants develop characteristics that are useful to future employers and to themselves too, as they can increase their employability.

Education for entrepreneurship is not integrated into the system of formal education in the Republic of Serbia, from primary, via secondary, to university and doctoral studies. However, projects of students’ entrepreneurship were started in great number of secondary schools and at particular colleges, often supported by donors. The following projects are among significant projects and initiatives that are currently being implemented in the Republic of Serbia: “Reform in secondary education and improvement in Serbia”, “Junior Achievement Serbias” – project of students’ entrepreneurship, program “Youth Entrepreneurship” and the project “South East Eu-ropean Centre for Entrepreneurial Learning”.

It is necessary to introduce entrepreneurial learning through contents of school sub-jects, as well as through special subjects within primary, secondary and university education.

One of basic preconditions for systemic introduction of entrepreneurial learning into education system of the country is to educate and train teachers. Teachers have a key role in the development of entrepreneurial spirit among young people because they are not supposed only to pass classical knowledge in this field on them, but also through practical work to devel-op the ability of students to think and act in creative and innovative manner.

In addition to first projects and initiatives through which teachers in this area are trained, there is shortage of adequate teaching personnel in the Republic of Serbia that would get included in the process of developing entrepreneurial learning, so it is necessary to contin-ue with the training of existing teachers and to introduce contents dealing with entrepreneurial learning into faculties that form the teaching personnel.


М1 The introduction of entrepreneurship education at all levels of the educational system of the Republic of Serbia

М2 Education and training of the entrepreneurship teachers

40 |

Pillar 4

5.4 ENHANCING THE SUSTAINABILITY AND COMPETITIVENESS OF SMEs

According to the report of the World Economic Forum 2014, Serbia is ranked 94 on the list that includes 114 countries with recorded value of Global Competitiveness Index (hereinafter referred to as GCI) of 3.90 (theoretical value of GCI is ranging in the interval from 1 to 7). Against the previous year, the value of GCI for Serbia was increased by 0.13 percent which resulted in positive rising on the ranking list for 7 places (from 101st to 94th place on the list). “Having in mind complex structure of GCI, the competitiveness that it represents could be defined roughly as a group of institutions, policies and factors defin-ing the level of productivity of the country. The level of competitiveness expresses the capacity of national economy to generate sustainable economic growth in the mid-term period on the existing level of development.”

Competitiveness of every country is determined by productivity of enterprises operating in it and the increase in productivity and improvement in quality of products and services is an ultimate goal for the strengthening of sustainability of local economy.

Institutional infrastructure for support to development of SMEs in the Republic of Serbia consists of the network of public institutions and agencies – NARD, Fund for Development, SIEPA, ECIA, National Employment Service, etc. Enterprise Europe Network, which acts within the consortium headed by NARD, has been active in Serbia since 2009. CCIS, with its network, is also active in rendering support to development of this sector. Activities of stated institutions and agencies did not appear to be coordinated at every moment nor did they provide adequate reply to changeable demands of SMEs.

Development of business infrastructure is of great significance for development of SMEs, in particular: business incubators, industrial parks/zones and technological parks.

Business infrastructure, as an important instrument of development of the com-petitive sector of SMEs, is mentioned in various developmental documents, but there is no strategic and legal framework that governs its development. The financing of the con-struction and operations of business infrastructure has mostly been based so far on ad hoc principle, from National Investment Plan13 funds, bilateral donations, loans and cred-its of international financial institutions.

Industrial zones, parks and business incubators present an important pillar of re-gional development policies of the Republic of Serbia. As support to identification, formu-lation and future financing of public municipal investment projects, including the estab-lishment of industrial zones, technological and industrial parks and business incubators, the Standing Conference of Towns and Municipalities (hereinafter referred to as: SCTM) has established a referent database if these projects – SLAP13 (hereinafter referred to as: SLAP).

| 41

On the other hand, the Law on innovative activities (RS Official Gazette, No. 110/05, 18/10 and 55/13) recognizes business – technological incubators and scientific-technologi-cal parks as organizations for rendering infrastructural support to innovative activity and as such they can be entered into the Register of entities of innovative activities headed by the Ministry of Education, Science and Technological Development.

The strategy of scientific and technological development of the Republic of Serbia for the period from 2010 to 2015 (RS Official Gazette, No.13/2010) presupposes investments in infrastructure of the Republic of Serbia in the domain of science and technology which are realized through the Unit for managing projects and so for this purpose the Republic of Serbia ensured the loan from the European Investment Bank from which several projects were financed, the most important of which is the forming of a scientific-technological park (Belgrade, Niš, Novi Sad and Kragujevac).

Information about business infrastructure in the Republic of Serbia are not system-atized and there is no a single register13 which has been caused by the fact that area of business infrastructure was not systemically arranged in adequate manner. SIEPA runs the basis of investment locations in the Republic of Serbia which are available to both local and foreign investors.

Within the Companies Registry for infrastructural support to innovative activity that is run by the Ministry of Education, Science and Technological Development, two sci-entific-technological parks and six commercial-technical incubators have been registered.

The EU has been establishing its long-term competitiveness on knowledge and in-novations and funds for research, development and innovations are big. There was over 50 billion EUR available for research and development in financial prospects 2007-2013 in the 7th Framework Programme (FP7), and there were 3.6 billion euro available for the Compet-itiveness and Innovation Framework Program (CIP)

For financial prospects (2014-2020), the EU has been planning even more funds. 2.3 billion euro have been intended through COSME Programme and even 80 billion euro through Horizon 2020 Programme.

The innovation is the application of a new or significantly improved product, pro-cess or service, or marketing method or a new organizational method in operations, work organization and relations of enterprises with environment15

Innovation is any technological or non-technological improvement that creates added value (hereinafter referred to as: innovation).

Economy of the Republic of Serbia is still characterized by innovativity at low level. According to results of EU research called Innovation Union Scoreboard15 for year 2014, the Republic of Serbia falls into the second group of countries that present moderate inno-vators, yet with growth tendency, with innovative performance under EU average, with in-novativity index for the Republic of Serbia amounting to 0.365. EU average in 2013 amount-ed to 0.554 whereas the highest innovativity index was recorded by Sweden, at 0.750.16

SMEs in the Republic of Serbia do not recognize enough the importance of innova-tions for the improvement of operations and they do not invest enough in them. Only one in seven enterprises implements innovative activities and only one in fourteen is making innovative cooperation with other business entities or institutions.

Realisation of various measures focused on connecting science and industry begun in the preceding period, such as activities in the reorganization of scientific-technological institute, the formation of a centre for transfer of technologies and the network of techno-logical brokers. By forming and commencing operations of the Fund for innovative activity support to high-technology young business entities was improved. The realization of the program for the implementation of joint innovative projects of industry and representa-

42 |

tives of scientific-research organizations, as well as competitions and other activities pro-moting innovations have been continued. Support to the strengthening of the innovation system and to the promotion of innovations in the preceding period was provided through projects financed from IPA funds and by other donors, and better opportunities for financ-ing innovative activities were created in this area through the participation of the Republic of Serbia in EU programs.

However, one of major weaknesses in the field of development of innovativity is poor connections between scientific-research institutions and SMEs. SMEs does not per-ceive scientific-research institutions as contingent partners whereas researchers cannot recognize in SMEs their target group and they maintain that there is no significant demand for new technological solutions in industry. For that reason, with the increase in invest-ments in science, it is important to establish relations and cooperation between industry and scientific-research institutions, to direct scientific-research institutions to adjust their work as much as possible to demands of economy and to raise the awareness of industrial-ists about the importance of innovations for improvement of their competitiveness.

Dimension 1: Improvment the efficiency of the institutional support to business operations and development of SMEs and entrepreneurship

Insufficient coordination of activities of institutions that have been rendering sup-port to operations and development of SMEs in Serbia, has affected directly the efficiency of their activities in the preceding period. In the coming period it is exceptionally important to specify the activities of stated institutions in accordance with demands of SMEs that will be coordinated and strongly guided and controlled by the ministry in charge of economiy. These institutions must ensure conditions for development of existing and for the form-ing of new SME, ensure the introduction of new technologies, knowledge and methods of modern management, namely to ensure uniform and efficient promotion and sale of products from Serbia.

Parallel to the process of development of formal entrepreneurial learning it is necessary to implement the process of development of informal education and business services intended to contingent and current entrepreneurs, employees and managers of companies who need additional knowledge and skill in operations. Constant changes and challenges in business environment initiate the need for constant upgrading and new knowledge.

A stand that the formation, growth and development of small-sized enterprises de-pends more on external factors than on knowledge, which are emphasized in developed countries as priorities, so opportunities for additional improvement are not used to suffi-cient extent.

Particular training programs are currently implemented in the Republic of Serbia, for those who want to start up a business and also for existing entrepreneurs, employees and company managers. These trainings are realized by private sector, National Employ-ment Service, NARD with ARDA network, various associations and CCIS.

It is necessary further to improve the quality, availability and scope of trainings and commercial services in the Republic of Serbia, to develop specialized trainings for target groups such as youth and women and to provide financial support to co-financing the attending of trainings and the use of commercial services for the purpose of improving competitiveness of SMEs.

| 43


М1 Improvement and / or reform of the operating modes and the capacity of existing institutions for the organized provision of services to meet the needs of SMEs

М2Monitoring the implementation of institutional support and improvement of the system of supervision over the work of institutions under the Ministry of Economy

М3 Further development of business services for SMEs

М4 Further development of trainings for potential and existing entrepreneurs

Dimension 2: Optimisation and improvement of the degree of utilization of existing infrastructure and development of the new business infrastructure

Having in mind the importance of the development of business infrastructure to regional development, the ministry in charge of operations of regional development drew up in the preceding period a draft project decision for Cadastre of business infrastructure in the Republic of Serbia in association with the Republic Geodetic Authority. At the same time, the survey was conducted about state of affairs of business infrastructure in units of local self-government the results of which indicate the necessity to establish systemic ap-proach to further arrangement of this matter and the development of business infrastruc-ture with clearly identified criteria for determining priorities. It is necessary to introduce the monitoring of operations and the evaluation of effects...

It is necessary to introduce the monitoring of work and the evaluation of effects that the development of business infrastructure has on economic growth, on the attracting of investments, innovations, increase in number of SMEs and uniform regional develop-ment. Also, it is necessary to develop models for the forming and the operating of business infrastructure based on public-private partnership.

One of necessary elements for economic development based on knowledge is the development and the strengthening of the business innovative infrastructure. In those terms, scientific-technological parks and technological incubators present important mod-els for encouraging the development of highly innovative SMEs, transfer of technology and knowledge from academic to economic frameworks and the commercialization of results of scientific research. The development of such forms of business infrastructure is excep-tionally important, having in mind that in the Global Competitiveness Report by the World Economic Forum for 2014-2015 the Republic of Serbia is ranked 69 when it comes to quality of scientific-research institutions, and it is ranked 125 when it comes to investments of the private sector in research and development.

In addition to business – technological incubators and scientific – technological parks that are intended for technological and innovative SMEs and which can function suc-cessfully only if they are close to university cities with developed scientific – research capac-ities, it is also necessary to develop other forms of business infrastructure for the purpose of attracting investments and for local economic development in smaller regions.

For the purpose of attracting new investments, it is necessary to ensure arranged and infrastructurally equipped sit in industrial zones. Business incubators that are clearly profiled and focused on target groups of special interest on that area (young people, re-

44 |

turnees to their hometowns, creative industries, IT sector, etc) can be a very useful instru-ment for encouraging entrepreneurship in local communities.


М1 Systemic regulation of business infrastructure development

М2 Development of business infrastructure for innovative SMEEs

М3 Development of business infrastructure for regional and local economic development

Dimension 3: Strengthening innovation in SMEs

Poor level of innovativity in Serbian enterprises is reflected in a narrow scope of tech-nological innovations and poor cooperation of science and industry. Non-technological inno-vations, regarding the improvement in organization and marketing, progressive use of infor-mation–communication technologies, etc. are also insufficiently represented in enterprises. Highly innovative enterprises, such as newly established high-technological enterprises in the field of information-communication technology and creative industries have not been supported sufficiently. Creative industries present industries based on individual creativity, skills and talent with a capacity to accumulate income (profits, wealth) and to (start) new jobs through creation and exploitation of various forms of intellectual property (hereinafter referred to as: creative industries)

Special dimensions of innovativity, in wider context, refer to support to development of eco-innovations and green economy, namely the turning of challenges of the environment protection into a business opportunity. The improvement in energy efficiency and efficacy of using resources, as a constituent part of the care about the environment, has become an important prerequisite of modern operations.

In the coming period, it is very important to build and reinforce capacities of nation-al innovation system as a whole that will enable the connecting of science and economy efficiently and provide support to highly innovative SMEs, that will enable better utilization of funds form EU programs that are available for these purposes and that will stimulate en-terprise to think innovatively. Also, it is necessary to give support for eco-innovations, for im-provements in energy efficiency and efficacy of using resources in SMEs and for development of innovative entrepreneurial ventures in the field creative industries.


М1 Improvment the functionality of the national innovation system

М2 Improve the support for highly innovative SMEs, eco-innovation, improvement of energy efficiency and efficient use of resources

М3Provide support for better absorption and utilization of funds from the European Union project Horizon 2020, for research, development and innovation

М4 Strengthen the awareness of SMEs of the importance of innovation for their competitiveness

| 45

Dimension 4: Encouraging business associations and creation of the chain of values

In all developed economies a necessary precondition to growth and development of SMEs is the existence of big enterprises that include SMEs in its chains of value therefore ensur-ing a safe market for their products. Data from the Global Competitiveness Report by the World Economic Forum for 2014-2015 indicate that there is a lot of room for improvements because, according to the indicator of quality of local suppliers, Serbia is ranked 98 out of the total of 144 analysed countries.

Taking into consideration all problems of local processing industry, it is necessary to encourage investments in new technologies, processes and services, as well as invest-ments in development of new products with higher added value that meet European and international standards with objective to reinforce competitive positions. By analysing the structure of imports in the Republic of Serbia, one can notice that great many imported products are already made in the Republic of Serbia or there is capacity for their produc-tion. The Objective of incentive measures is to create competitiveness of export-oriented enterprises and their products with high share of local raw materials and components in the product, with respect to economic cost efficiency while not endangering market com-petition and with enlargement of production structure of local producers.

It is necessary to put efforts so big enterprises, exporters, could establish coopera-tion with local SMEs, which on the other hand should be given support in understanding of requirements of big enterprises and in the increase in visibility on the market as contingent suppliers. Moreover, it is necessary to encourage the association of SMEs because they of-ten do not have enough capacities of their own for individual performance on big markets. Encouraging of development of clusters as well as the cooperation among them is one of the methods of amalgamation of the effects of operations of SMEs and the extension of chains of supply and therefore the increase in number of transactions among SMEs and the overflow of effects of development of total economy onto SMEs.

Experiences of developed economies indicate that the development of franchising is one efficient instruments of encouraging development of SMEs. SMEs sector in Serbia did not recognize franchising as one of successful models of self-employment and the starting up of one’s own business. For the purpose of modernizing operations and boosting the competitiveness of economy, it is necessary to undertake measures of rising awareness of importance of franchising and to facilitate the access to SMEs to franchise providers.


М1 Supporting joint performace on the market

М2Creation of new value chains and the increase in the level of product finalisation

46 |

Pillar 5

5.5 IMPROVEMENT IN THE APPROACH TO NEW MARKETS

This pillar comprises measures referring to the increase in number of exporter, scope of exports and the quality of export products of SMEs and support in the identifica-tion of possible of markets for placing products/services, their emergence and the survival on those markets.

Increase in export is of multiple importance to local economy. The growth of export results consequently in the increase in productivity, economic growth and national income and the decrease in unemployment rate. Within that context, the increase in export and the emergence of Serbian enterprises onto new markets presents, in addition to improvements in production, innovations, competitiveness and increase in employment, one of priorities of the Government of the Republic of Serbia in the coming period.

Export is of exceptional importance having in mind the size of local market and purchase power, so local demand cannot be a strong driver of development of local enter-prises.

It is necessary to accomplish three parallel goals through measures within this pil-lar. First, to boost the scope of export: second, to improve the export structure; and third, to increase their share in supply of big local industrial systems, i.e. to replace their import of raw and processed materials.

Foreign trade balance of the Republic of Serbia is still disadvantageous but ob-serving the period 2008-2013, as one can see in the table below, the deficit was reduced substantially.

The decrease in deficit in 2013 against 2008 is significant despite slight leap in 2011. The coverage of imports by exports is also rising and at the end of 2013 it amounted to 71.1%. The share of GDP amounts to 44.9%, thus ranking the Republic of Serbia on the 55th place among 144 countries according to the Global Competitiveness Report by World Economic Forum 2014-2015.

| 47

Table 8 – Foreign trade balance of the Republic of Serbia (in mill. RSD), Source: Republic Bureau of Statistics

2008 2009 2010 2011 2012 2013

Export 10974 8344 9795 11780 11228 14611

Import 24042 15807 16471 19862 18929 20551

Deficit -13069 -7463 -6676 -8082 -7701 -5940

Coverage of import by export

(%)

45.64% 52.79% 59.47% 59.03% 59.31% 71,1%

Structure of exports of Serbian industry by sectors is still disadvantageous with the domineering products of lower processing stage (raw and processed materials). According to the Global Competitiveness Report by the World Economic Forum, the Republic of Ser-bia is ranked 128 by width of chains of value, namely the level of the finalization of prod-ucts, and by sophistication of the production process it is ranked 133 among 144 countries.

According to geographic structure, Serbian export is focused for the major part on EU member countries (more than a half of total exchange). The most significant foreign trade partners in export are: Italy, Germany, Bosnia and Herzegovina, Russian Federation and Montenegro. Major foreign trade partners on importing side are: Italy, Germany, Rus-sian Federation, China and Hungary. Major deficit in exchange is achieved with Russian Federation, Kazakhstan and China and the biggest surplus is recorded with Montenegro, Macedonia and Bosnia and Herzegovina.

Bilateral and multilateral trade arrangements that the Republic of Serbia has with the EU, the signers of the Central Europe Free Trade Agreement (hereinafter referred to as: CEFTA), Russia, Turkey, the members of the European Free Trade Association (herein-after referred to as: EFTA) and other countries, present an important capacity for Serbian exporters. When it comes to the United States of America (hereinafter referred to as: the USA), Generalized System of Preferences is in force. The Republic of Serbia has also re-corded advantageous results in foreign trade exchange with the most important devel-oping economies, such as: India (with which it has been recording constant increase in foreign trade exchange since 2006), Brazil (with which it is possible to improve coopera-tion in the field of chemical and pharmaceutical products, automotive industry and infor-mation-communication technologies), as well as other countries of the Commonwealth of Independent States.

In addition to the low level of production specialization and resource-intensive export, Serbian export is characterized by prevailing share of several big production sys-tems (FIAT/FAS, NIS, Hemofarm, Valjaonice bakra i aluminijuma, Gorenje, Tigar, etc). While in the EU around 25% of SMEs are exporters, in Serbia only less than 5% of SMEs have been recording income from exports.

Significant correlation between export and import is present and so the major exporters are also the major importers. This correlation presents a developmental oppor-tunity to local SMEs to get included in the chains of suppliers to big exporters through the process of substitution of imports.

48 |

Dimension 1: Ensuring continuous support to SMEs for the aproachon new markets

Notwithstanding capacity for the development that foreign markets bring to SMEs, upon the emergence on those markets, they meet various obstacles that, in ad-dition to export financing and insurance, include the lack of information about markets and problems of finding contingent customers and adequate partners. In addition they are facing complex rules and procedures of foreign trade operations and challenges of synchronizing with foreign rules and technical regulations on exporting markets (e.g. binding rights of contract law, customs procedures, technical regulations and stand-ards). SMEs, unlike big companies, usually do not have interior capacities (professional and financial) for overcoming these obstacles. Measures within this dimension should ensure quality support to SMEs exporters and contingent exporters, approach export procedures and facilitate technical preparation of export.


М1 Improvment availability and quality of available information about foreign (priority) markets

М2 Upgrading knowledge of exporters and rendering professional support

М3 Establishing contacts with contingent business partners

Dimension 2: Reduction and overcoming technical obstacles to trade

Implementation of required technical regulations can present technical obstacles to trade complicating the export of local products, but one should have in mind the fact that they often become an obligation on local market too. In past few years the Republic of Serbia made significant progress in taking over and in applying European regulations and standards and in the coming period it is necessary to encircle this process. Parallel to that, it is very important to approach in clear and understandable manner the specific requirements of these technical regulations that must be met for placing products on both local market and international markets as well. At the same time, for the purpose of efficient implementation of technical regulations and standards, it is necessary to strengthen institutional framework of the infrastructure of quality (Institute of Standardisation of Serbia – ISS, Accreditation Body of Serbia – ABS, Directorate of Measures and Precious Metals Serbia – DMPM and bodies for conformity assessment) in order to ensure efficient rendering of necessary testing services, stamping, control and certification, with creating conditions that local certificates on con-formity be recognized on foreign markets.


М1 Synchronizing with technical regulations and standards of the EU

М2 Improvment system of infrastructure of quality

М3 Raising awareness of SMEs about the importance of synchronizing products with requirements of technical regulations and standards

М4 Ensuring support for achieving conformity with requirements of technical regulations and standards

| 49

Pillar 6

5.6 DEVELOPMENT AND PROMOTION OF ENTREPRENEURIAL SPIRIT AND ENCOURAGING OF WOMEN’S ENTREPRENEURSHIP, YOUTH ENTREPRENEURSHIP AND SOCIAL ENTREPRENEURSHIP

Women entrepreneurs make one quarter of total number of businesspeople in the Republic of Serbia and there is a tendency of women increasing in number on leading po-sitions in enterprises. However, statistical data indicate still poor utilised economic capacity of women. Only 38.1% women of working age (15-64) were employed in April 2013, against 53.6% men. Among the employed women, only 15.6% women perform business individu-ally, against 30.5% men.

Women decide to start an enterprise mostly for necessity reasons and they are facing numerous difficulties when establishing and running operations. Though most of those dif-ficulties are common to both genders, in many cases they have special influence on women entrepreneurs – they are conditioned by the choice of a sector, gender discrimination and the existence of a stereotypes, insufficiently developed and inflexible care about children, diffi-culties in synchronizing family and business obligations or differences in women’s and men’s relation towards entrepreneurship. Women posses fewer number of real estate of which they are registered owners which makes it difficult for them to obtain a loan due to lack of security instruments.

There is no strategy in the Republic of Serbia referring directly and exclusively to development of women’s entrepreneurship. The National Strategy for improving position of women and upgrading gender equality (RS Official Gazette, No 15/09), the Action Plan for the implementation of the National strategy for improving position of women and the upgrading of gender equality for the period 2010-2015 (RS Official Gazette, No 67/10) and the National Employment Strategy for the period 2011-2020 (RS Official Gazette, No 37/2011) indicate clearly the importance of women’s entrepreneurship. Legal, institutional and strategic frameworks have been established but the key problem is the insufficient integration of gender prospects, namely insufficiently efficient implementation of laws, regulations and strategies.

50 |

Since they present the minority and they are facing specific limitations, it is im-portant to ensure necessary support to women in all business phases – from starting up the business, management, growth and development, to the termination of operations- Through the Act on small-sized enterprises the EU underlines that women’s entrepreneur-ship is of priority importance and women are encouraged through numerous activities to start their entrepreneurial operations or to strengthen the existing ones through, e.g. men-tor schemes. The Government of the Republic of Serbia has been stressing women’s entre-preneurship over past few years and it is trying to provide a good business environment for development of women’s entrepreneurship in the Republic of Serbia.

Young people are in unfavourable position on labour market which is characterized by low rate of activities and the unemployment rate among young people is far higher than the average unemployment rate of working active population. Most of young people are long-term unemployed and there is also a growing number of young people seeking jobs for the first time. High number of young people is included in informal labour market, and only 11% decide to start self-employment. However, one may conclude that young people are interested in developing their own business since great many of them were attending courses for entrepreneurs that were organized by NARD.

In addition to the lack of professional experience and expert practice, which can be consider aggravating conditions when making decision about starting up a business, young people are facing the problem of underdeveloped entrepreneurial skills which is the result of the lack of adequate educational trainings in secondary schools and at universities that would encourage the development of entrepreneurship among young people.

In addition to improving conditions in education system and higher support, en-trepreneurship among young people could be developed more significantly and facilitate the problem of high unemployment rate among young people and also it could enable the utilisation of innovative capacity that characterize young people. Having in mind the fact that one part of measures necessary for improving entrepreneurship among young people refers before all to the development of entrepreneurial spirit and skills, they are encom-passed with alike measures within the pillar No3.

Social entrepreneurship is characterized by high innovativity and capability of combining various resources in order to perform successfully its economic activities and fulfil the social mission. It is necessary that other participants in economic system, before all the decision makers and relevant state authorities, organizations and institutions and private enterprises as well that are focused on profit generation, recognize specific role of the social entrepreneurship and help its affirming, survival and functioning. Advantageous legal framework, which is an advantage in public procurements, socially responsible oper-ations and availability of micro-financing are only some of options that open broader room for the development of social entrepreneurship.

In 2012 there were 1196 social enterprises of various types operating in the Repub-lic of Serbia. In the sector of social enterprises in 2012 there were 10,326 employed persons, who made 0.6% of total number of the employed in the Republic of Serbia. Social enter-prises in the Republic of Serbia meet through their operations many more obstacles than advantages and major problems in the sector of social enterprises are the lack of sources of financing, low product and service prices, unpaid receivables and insufficient support.

Statistical monitoring and research present an important segment of successful development policy. For that purpose it is necessary to arrange statistical monitoring of SMEs synchronized with EUROSTAT which will encompass all aspects of entrepreneurship, including women’s and youth entrepreneurship and entrepreneurship of social enterprises.

| 51

Dimension 1: Improvement of statistical monitoring and research of entrepreneurship of women, youth and social entre-preneurship

Owing to regular monitoring of SMEs sector, as well as synchronizing business sta-tistics with those of EUROSTAT, there is a wider scope of possibilities available for moni-toring entrepreneurship. However, available data are often not gender sensitive and they do not provide insight into gender differences in entrepreneurship, nor in specificities of entrepreneurships of women, youth and social enterprises. It is necessary to upgrade the available statistical data and to make them gender sensitive and to create conditions for regular monitoring of all forms of entrepreneurship.

Quality statistical information is necessary basis for efficient and adequate profiling of support programs as well as for monitoring the effects o measures through changes of conditions and tendencies in all specific forms of entrepreneurship.


М1Development of mechanism for strategic collecting, processing and monitoring information about women’s entrepreneurship, youth entrepreneurship and social entrepreneurship

М2Establishing of a system of regular and comparable monitoring of women’s, youth and social entrepreneurship

Dimension 2: Politics and instruments for support to women’s, youth and social entrepreneurship

The Ministry in charge of youth realised various activities focused on the develop-ment of entrepreneurship of young people, and the ministry in charge of employment was encouraging particular forms of social enterprises whereas most of instruments for support to development of social entrepreneurship were coming from the sector of civil society and from community of donors that were insufficient. Over past few years, the ministry in charge of economy with the network of institutions for support to entrepreneurship has realised various projects with objective to create institutional framework for support to development of SMEs as well as various types of financial and non-financial support all over the Republic of Serbia. However, most of these measures cannot respond adequately to demands of these three target groups in the field of entrepreneurship and so it is necessary to redefine the existing measures wherever possible, namely to introduce new measures of support especially directed towards each of these target groups, in accordance with their specific demands. Easier access to sources of financing to these three specific areas of en-trepreneurship through favourable credit lines, micro financing, guarantees and alternative sources of financing is of special importance.

It is necessary to support women’s entrepreneurship, entrepreneurship of young people and social entrepreneurship through development of training, mentoring services and other forms of professional support to entrepreneurs.

Also, there are many national and local associations in the Republic of Serbia gath-ering women entrepreneur, representing their interests, realising trainings and implement-ing support projects. Important role of mentioned associations is to inform and to develop the network of business contacts of its members. Offices for the youth and associations

52 |

dealing with issues of young people are active in the implementation of trainings and in informing young people about self-employment opportunities. There are also two network for support to development of social entrepreneurship being active in the Republic of Ser-bia. In the process of affirming and encouraging women’s, social and youth entrepreneur-ship, it is necessary to create strong partnership between governmental and non-govern-mental sector.

It is necessary to organize promoting activities for the purpose of changing tradition-al perception of the role and position of women in society and also to promote experiences of women who are successful examples for the purpose of encouraging contingent women entrepreneurs. Also, it is necessary to promote successful examples of young entrepreneurs who can encourage other young people to start their own business operations. Consider-ing insufficiently utilised opportunities of social entrepreneurship, it is important to develop awareness about what social entrepreneurship is, what about its specificities and importance and the legislative and institutional framework for operations of social enterprises.


М1 Include support to women’s, youth and social entrepreneurship in all state documents that can affect the economy

М2 Increase participation of women, youth and social enterprise in various programs of support to SMEs

М3 To introduce special programs of support to SMEs intended exclusively to women, youth and social entrepreneurship

М4 Promotion of entrepreneurial spirit, examples of good practice, networking, establishing dialogue

| 53

6 Final Provisions

Activities, with deadlines, bodies

and organizations in charge of the

implementation of activities, necessary

financial assets and indicators for

monitoring of the implementation of

measures of this strategy will be specified

through annual action plans adopted

by the Government. Action plan for the

implementation of the Strategy 2015

with projections for 2106 was prepared

simultaneously with the Strategy and forms

its constituent part.

To publish the Strategy in The Republic

of Serbia Official Gazette

05 Number: 023-3281/2015-1

Belgrade, 26th March, 2015

Action plan for the implementationof the Strategy to supportthe development of small and medium-sized enterprises, entrepreneurship (SMEs)and competitiveness

56 |

ACTION PLAN

PILLAR-11 OVERALL OBJECTIVE – IMPROVMENT THE BUSINESS ENVIRONMENT

1.1 DIMENSION SPECIFIC OBJECTIVE NAME ESTABLISHING A SUPPORTIVE REGULATORY FRAMEWORK IN LINE WITH THE NEEDS AND CAPABILITIES OF SMES

Measure М1 - Improvment the legal framework for the establishment, operation and closing of business entities М1 - Improvment the legal framework for the establishment, operation and closing of business entities

Number Activity Competent Authorities Due Date Indicator The source and the estimate of the amount of financial resources

А1Amendments to the Law on Companies ("Official Gazette of the Republic of Serbia", No. 36/11, 99/11, 83 / 14-other law and 5/15)

Ministry of Economy 2015Prepared and adopted amendments to the Law on Companies in order to improve business conditions and finding more efficient ways of organizing business entities

National budget – allocation for regular operation

А2

Amendments to the Law on Bankruptcy ("Official Gazette of the Republic of Serbia", No. 104/09, 99/11- other law, 71 / 12 decision of the CC and 83/14)

Ministry of Economy 2015

Amended Bankruptcy Law in order to: (1) improve and simplify bankruptcy proceedings;

(2) introduce the possibility for licensed companies to perform activities of administrative receivers;

(3) improve the process in order to reduce the number of subjects that are closing at the end of the bankruptcy proceedings, and the increase the number of subjects which continue to operate after bankruptcy


А3 Monitoring the implementation of the Law on Bankruptcy Ministry of Economy 2015

2016

Shortening the time required for the implementation of bankruptcy so that, on average, it lasts up to 1 year; The costs of implementing bankruptcy proceedings reduced by at least 2% by the end of 2015

National budget – allocation for regular operation with support from the project: “Development of the Private Sector” IPA 2013 of 2016-Service contract

А4 Improvment human capacity for more effective implementation of the Law on Bankruptcy

Ministry of Economy Bankruptcy

Supervision Agency2016

Materials prepared and training of bankroptcy administrators conducted; At least 50% of active bankroptcy administrators trained;

Materials distributed to all licensed bankroptcy administrators

National budget – allocation for regular operation with support from the project: “Development of the Private Sector” IPA 2013 of 2016- Service contract

А5 The adoption of the Law on Crafts Ministry of Economy 2015 Prepared and adopted the Law on crafts that regulates craft business National budget – allocation for regular operation

А6 The adoption of the Law on Cooperatives, which will regulate their legal status Ministry of Economy 2015

Prepared and adopted the Law on Cooperatives, which created the conditions for more intensive development of cooperatives in Serbia based on modern standards

Regulated the activities of performing cooperative audit

Defined conditions for the acquisition of cooperative property and its registration in the register of real rights on immovable property and rights to them


А7

Continued consistent application of the Law on deadlines for settlement of financial obligations in commercial transactions ("Official Gazette of the Republic of Serbia", No. 119/12)

Ministry of Finance 2015 2016

Respecting the deadlines prescribed by Law for the collection of monetary claims by applying strict controls, especially the payments of the public sector


А8

Amend the Rules on the records of trade in goods and services ("Official Gazette of the Republic of Serbia", No. 45/96, 48/96-correction, 9/97, 6/99, 109/09, 7/10) or adopt new rules in this area

Ministry of Trade, Tourism and Telecommunications Ministry of Finance

2015Abolished the obligation of keeping records of trade in goods wholesale for businesses entities which practise double-entry bookkeeping

National budget – allocation for regular operation with support from USAID BEP–Business Enabling Project

А9

Prepare and implement a campaign to promote positive attitudes about providing "a second chance" - encouraging entrepreneurs to start new business ventures after previous business failures

National Agency for Regional Development (hereinafter: NARD)

2016 A special campaign on the internet portal "Entrepreneurial service" and organization of a minimum of one event per year on this subject

National budget –allocation for regular operation with support from the project: “Development of the Private Sector” IPA 2013 of 2016 Service contract

А10Support for the timely preparation of transfer of ownership and management of enterprises whose owners are withdrawing from the business

NARD

Ministry of Economy2016

A program proposal made, for the timely preparation for the transfer of ownership of an SME and connecting owners with potential new owners


1 Support for the implementation of activities under Pillar 1 will also be provided through the project “Development of the Private Sector” IPA 2013 of 2016

| 57

Pillar 1

PILLAR-11 OVERALL OBJECTIVE – IMPROVMENT THE BUSINESS ENVIRONMENT

1.1 DIMENSION SPECIFIC OBJECTIVE NAME ESTABLISHING A SUPPORTIVE REGULATORY FRAMEWORK IN LINE WITH THE NEEDS AND CAPABILITIES OF SMES

Measure М1 - Improvment the legal framework for the establishment, operation and closing of business entities М1 - Improvment the legal framework for the establishment, operation and closing of business entities


А1Amendments to the Law on Companies ("Official Gazette of the Republic of Serbia", No. 36/11, 99/11, 83 / 14-other law and 5/15)

Ministry of Economy 2015Prepared and adopted amendments to the Law on Companies in order to improve business conditions and finding more efficient ways of organizing business entities


А2

Amendments to the Law on Bankruptcy ("Official Gazette of the Republic of Serbia", No. 104/09, 99/11- other law, 71 / 12 decision of the CC and 83/14)


Amended Bankruptcy Law in order to: (1) improve and simplify bankruptcy proceedings;

(2) introduce the possibility for licensed companies to perform activities of administrative receivers;

(3) improve the process in order to reduce the number of subjects that are closing at the end of the bankruptcy proceedings, and the increase the number of subjects which continue to operate after bankruptcy


А3 Monitoring the implementation of the Law on Bankruptcy Ministry of Economy 2015

2016

Shortening the time required for the implementation of bankruptcy so that, on average, it lasts up to 1 year; The costs of implementing bankruptcy proceedings reduced by at least 2% by the end of 2015

National budget – allocation for regular operation with support from the project: “Development of the Private Sector” IPA 2013 of 2016-Service contract

А4 Improvment human capacity for more effective implementation of the Law on Bankruptcy

Ministry of Economy Bankruptcy

Supervision Agency2016

Materials prepared and training of bankroptcy administrators conducted; At least 50% of active bankroptcy administrators trained;

Materials distributed to all licensed bankroptcy administrators


А5 The adoption of the Law on Crafts Ministry of Economy 2015 Prepared and adopted the Law on crafts that regulates craft business National budget – allocation for regular operation

А6 The adoption of the Law on Cooperatives, which will regulate their legal status Ministry of Economy 2015

Prepared and adopted the Law on Cooperatives, which created the conditions for more intensive development of cooperatives in Serbia based on modern standards

Regulated the activities of performing cooperative audit

Defined conditions for the acquisition of cooperative property and its registration in the register of real rights on immovable property and rights to them


А7

Continued consistent application of the Law on deadlines for settlement of financial obligations in commercial transactions ("Official Gazette of the Republic of Serbia", No. 119/12)

Ministry of Finance 2015 2016

Respecting the deadlines prescribed by Law for the collection of monetary claims by applying strict controls, especially the payments of the public sector


А8

Amend the Rules on the records of trade in goods and services ("Official Gazette of the Republic of Serbia", No. 45/96, 48/96-correction, 9/97, 6/99, 109/09, 7/10) or adopt new rules in this area

Ministry of Trade, Tourism and Telecommunications Ministry of Finance

2015Abolished the obligation of keeping records of trade in goods wholesale for businesses entities which practise double-entry bookkeeping

National budget – allocation for regular operation with support from USAID BEP–Business Enabling Project

А9

Prepare and implement a campaign to promote positive attitudes about providing "a second chance" - encouraging entrepreneurs to start new business ventures after previous business failures

National Agency for Regional Development (hereinafter: NARD)

2016 A special campaign on the internet portal "Entrepreneurial service" and organization of a minimum of one event per year on this subject


А10Support for the timely preparation of transfer of ownership and management of enterprises whose owners are withdrawing from the business

NARD


A program proposal made, for the timely preparation for the transfer of ownership of an SME and connecting owners with potential new owners


58 |

ACTION PLAN

А11Amendments to the Law on consensual financial restructuring of companies ("Official Gazette of the Republic of Serbia", No. 36/11)

Ministry of Economy

Chamber of Commerce and Industry of Serbia (hereinafter: CCIS)

2015

2016

Adopted amendments to the Law on consensual financial restructuring of companies In 2016, prepared informational materials for trainings and organized 2 training programs for entrepreneurs on the possibilities of using consensual financial restructuring of companies in accordance with the adopted amendments

National budget –allocation for regular operation with support from the project: “Development of the Private Sector” IPA 2013 of 2016- Service contract

А12

Implementation of the campaign aimed at promoting the Law on Mediation in dispute resolution ("Official Gazette of the Republic of Serbia", No 55/14)

CCIS

Ministry of Economy

2015

2016

At least 4 promotional activities during the year

In 2016 at least 2% of the economy using the mechanisms of alternative dispute resolution

CoC budget with support from the project: “Development of the Private Sector” IPA 2013 of 2016 Service contract

А13 The adoption of the Law on Temporary limitation of rights to perform economic and other activities Ministry of Economy 2015 The law adopted in order to create safer business operating conditions

National budget –allocation for regular operation and donation from the Government of the Kingdom of Norway confirmed by the Government’s Conclusion 05 Number: 018-10139/2013-1 dated 28 November 2013

А14 Coordination of activities to reduce gray economyCoordinating Body for directing activities on combating gray economy

2015 Prepared the national program for combating gray economy National budget –allocation for regular operation

Measure М2 - Reduction of tax and non-tax related obligations of the economy М2 - Reduction of tax and non-tax related obligations of the economy


А1 The adoption of the Law on fees for using public goods Ministry of Finance

2015

2016Regulated the system of remunerations for the use of public goods and establishment of the publicly available electronic Registry

National budget –allocation for regular operation

А2

Amendments to the Law on republic administrative fees ("Official Gazette of the Republic of Serbia", No 43/03, 51/03-corection, 61/05, 101/05-other law, 5/09, 54/09, 50/11, 70/11-harmonized dinar amount, 55/12- harmonized dinar amount, 93/12, 47/13- harmonized dinar amount, 65/13- other law, and 57/14- harmonized dinar amount)

Ministry of Finance 2015

Amendment of the provisions of the Law on Republic Administrative Fees in such a way that all documents and actions in legal matters, as well as other documents and actions connected to the authorities are prescribed the nominal amount of the fee. Any public service must be valued in accordance with the principle that a fee is paid for it in the amount of its value and the expenditure of public administration funds


A3 Establish a clear methodology for determining the amount for lump sum taxation

Ministry of Finance– Tax Administration 2015

Created a clear methodology for the taxation of income of entrepreneurs who pay tax on income from self-employment on a lump-sum basis


А4

Adoption of the Law on local self-government financing with the aim of overcoming the current system of financing local governments and clearly defining the criteria for determining the amount of taxes


Adopted the Law on local self-government financing that eliminated the weaknesses of the current system of financing local governments and introduced more responsible approach of revenue collection by municipalities and cities which would create a fiscally responsible and sustainable system of the public finances

Created clear legal rules that define the system of financing local self-government units and created environment of stability and predictability in planning revenue during the preparation of decisions on budget of local self-government units (hereinafter ULS)

By new legislations harmonized the names with tax character of the original revenues of local self-government units

Prescribed a different system of calculating improper transfers to local self-government units that will change the management of public finances at the local government level

In the part which prescribes the determination of fees and charges for the provision of certain public services prescribing clear criteria for each tax for which it is possible but for those there are not clearly criteria for determining the amount or criteria are set too wide so lead to large differences in the amounts of fees for the same service in different ULS


| 59

Pillar 1

А11Amendments to the Law on consensual financial restructuring of companies ("Official Gazette of the Republic of Serbia", No. 36/11)

Ministry of Economy

Chamber of Commerce and Industry of Serbia (hereinafter: CCIS)

2015

2016

Adopted amendments to the Law on consensual financial restructuring of companies In 2016, prepared informational materials for trainings and organized 2 training programs for entrepreneurs on the possibilities of using consensual financial restructuring of companies in accordance with the adopted amendments

National budget –allocation for regular operation with support from the project: “Development of the Private Sector” IPA 2013 of 2016- Service contract

А12

Implementation of the campaign aimed at promoting the Law on Mediation in dispute resolution ("Official Gazette of the Republic of Serbia", No 55/14)

CCIS

Ministry of Economy

2015

2016

At least 4 promotional activities during the year

In 2016 at least 2% of the economy using the mechanisms of alternative dispute resolution

CoC budget with support from the project: “Development of the Private Sector” IPA 2013 of 2016 Service contract

А13 The adoption of the Law on Temporary limitation of rights to perform economic and other activities Ministry of Economy 2015 The law adopted in order to create safer business operating conditions

National budget –allocation for regular operation and donation from the Government of the Kingdom of Norway confirmed by the Government’s Conclusion 05 Number: 018-10139/2013-1 dated 28 November 2013

А14 Coordination of activities to reduce gray economyCoordinating Body for directing activities on combating gray economy

2015 Prepared the national program for combating gray economy National budget –allocation for regular operation

Measure М2 - Reduction of tax and non-tax related obligations of the economy М2 - Reduction of tax and non-tax related obligations of the economy


А1 The adoption of the Law on fees for using public goods Ministry of Finance

2015

2016Regulated the system of remunerations for the use of public goods and establishment of the publicly available electronic Registry


А2

Amendments to the Law on republic administrative fees ("Official Gazette of the Republic of Serbia", No 43/03, 51/03-corection, 61/05, 101/05-other law, 5/09, 54/09, 50/11, 70/11-harmonized dinar amount, 55/12- harmonized dinar amount, 93/12, 47/13- harmonized dinar amount, 65/13- other law, and 57/14- harmonized dinar amount)


Amendment of the provisions of the Law on Republic Administrative Fees in such a way that all documents and actions in legal matters, as well as other documents and actions connected to the authorities are prescribed the nominal amount of the fee. Any public service must be valued in accordance with the principle that a fee is paid for it in the amount of its value and the expenditure of public administration funds


A3 Establish a clear methodology for determining the amount for lump sum taxation

Ministry of Finance– Tax Administration 2015

Created a clear methodology for the taxation of income of entrepreneurs who pay tax on income from self-employment on a lump-sum basis


А4

Adoption of the Law on local self-government financing with the aim of overcoming the current system of financing local governments and clearly defining the criteria for determining the amount of taxes


Adopted the Law on local self-government financing that eliminated the weaknesses of the current system of financing local governments and introduced more responsible approach of revenue collection by municipalities and cities which would create a fiscally responsible and sustainable system of the public finances

Created clear legal rules that define the system of financing local self-government units and created environment of stability and predictability in planning revenue during the preparation of decisions on budget of local self-government units (hereinafter ULS)

By new legislations harmonized the names with tax character of the original revenues of local self-government units

Prescribed a different system of calculating improper transfers to local self-government units that will change the management of public finances at the local government level

In the part which prescribes the determination of fees and charges for the provision of certain public services prescribing clear criteria for each tax for which it is possible but for those there are not clearly criteria for determining the amount or criteria are set too wide so lead to large differences in the amounts of fees for the same service in different ULS


60 |

ACTION PLAN

Мeasure М3 - The introduction of more efficient procedures for investments in construction and management of real estate

М3 - The introduction of more efficient procedures for investments in construction and management of real estate


А1

The adoption of the Law on Amendments to the Law on State Survey and Cadastre ("Official Gazette of the Republic of Serbia", No 72/09 and 18/10, 65/13 and15/15- decision of the CC)

Ministry of Civil Engineering, Transportation and Infrastructure

Ministry of Finance

Republic Geodetic Authority

2015

The planned sanctions for non-compliance with the deadline of 30 days provided for by the Law on General Administrative Procedure ("Official Gazette of the Republic of Serbia", No. 33/97, 31/01, 30/10), in which the competent administrative authorities, including the Republic Geodetic Authority, must perform registration in the Real Estate Cadastre by duly received the request

National budget –allocation for regular operation with the support of USAID BEP - Business Enabling Project

А2

Full implementation of the adopted Law on Amendments to the Law on Planning and Construction ("Official Gazette of the Republic of Serbia", No 132/14 and 145/14)


2015

Duration of the procedure for obtaining construction and use permits and registering property rights shortened for at least 100 days

The rationalization of taxes and charges through their reduction and abolition

Reducing the number of procedures to no more than 11 (currently there are 16)


with the support of USAID BEP - Business Enabling Project

А3

Establishment of the central record of unified procedures for issuing construction permits in accordance with the Law on Amendments to the Law on Planning and Construction

Serbia Business Registers Agency (hereinafter: SBRA)


2016 Established the Central Record of unified procedures for issuing construction permits

Own revenues of the Business Registers Agency (fee income)-with support from the project: "Development of the Private Sector" IPA 2013 of 2016-service contract

А4

Reconciliation of sector legislation with the legislative framework for regulating the area of planning and construction in order to optimize the process of issuing licenses related to construction, issued by public companies and other bodies


Ministry of Finance

Republic Geodetic Authority and other competent bodies

2015

The harmonized regulations relating to the building permit issuing procedure performed by public companies and other bodies; Redefining the role of public companies and other bodies involved in licensing procedures in the process of construction

Optimization of procedures



А5Regulating property-legal relations on construction land and creating the necessary physical and urban plans


Ministry of Finance


Standing Conference of Towns and Municipalities (hereinafter: SCTM) and other competent bodies

2015

2016

The exact situation determined concerning the lack of coverage on certain territories with corresponding physical and urban plans and prepared the action plan that specifies the dynamics of development and adoption of missing planning documents

National budget –allocation for regular operation with support from the project: “Development of the Private Sector” IPA 2013 of 2016- service contract

А6Legislation reform which stipulates the payment of contribution fee for construction land development


Ministry of Finance

2015 Clear criteria determined for calculating the contribution fee for of the construction land development


А7Amend the Regulations on the development and maintenance of real estate cadastre ("Official Gazette of the Republic of Serbia", No. 46/99)

Republic Geodetic Authority 2015

Prescribed obligations of registering of pre-emption in the real estate cadastre to clearly emphasize this right and to uniformly apply it in all units of the cadastre

Enabled the registration of all leases without restrictions


А8 Shorten the time needed to register mortgage on the property, as well as to cancel it Republic Geodetic Authority 2015

Simplified and shortened the administrative procedures for the registration and cancellation of the mortgage

Staff in the local cadastre offices trained in the implementation of administrative procedures



| 61

Pillar 1

Мeasure М3 - The introduction of more efficient procedures for investments in construction and management of real estate

М3 - The introduction of more efficient procedures for investments in construction and management of real estate


А1

The adoption of the Law on Amendments to the Law on State Survey and Cadastre ("Official Gazette of the Republic of Serbia", No 72/09 and 18/10, 65/13 and15/15- decision of the CC)


Ministry of Finance


2015

The planned sanctions for non-compliance with the deadline of 30 days provided for by the Law on General Administrative Procedure ("Official Gazette of the Republic of Serbia", No. 33/97, 31/01, 30/10), in which the competent administrative authorities, including the Republic Geodetic Authority, must perform registration in the Real Estate Cadastre by duly received the request


А2

Full implementation of the adopted Law on Amendments to the Law on Planning and Construction ("Official Gazette of the Republic of Serbia", No 132/14 and 145/14)


2015

Duration of the procedure for obtaining construction and use permits and registering property rights shortened for at least 100 days

The rationalization of taxes and charges through their reduction and abolition

Reducing the number of procedures to no more than 11 (currently there are 16)



А3

Establishment of the central record of unified procedures for issuing construction permits in accordance with the Law on Amendments to the Law on Planning and Construction

Serbia Business Registers Agency (hereinafter: SBRA)


2016 Established the Central Record of unified procedures for issuing construction permits

Own revenues of the Business Registers Agency (fee income)-with support from the project: "Development of the Private Sector" IPA 2013 of 2016-service contract

А4

Reconciliation of sector legislation with the legislative framework for regulating the area of planning and construction in order to optimize the process of issuing licenses related to construction, issued by public companies and other bodies


Ministry of Finance

Republic Geodetic Authority and other competent bodies

2015

The harmonized regulations relating to the building permit issuing procedure performed by public companies and other bodies; Redefining the role of public companies and other bodies involved in licensing procedures in the process of construction

Optimization of procedures



А5Regulating property-legal relations on construction land and creating the necessary physical and urban plans


Ministry of Finance


Standing Conference of Towns and Municipalities (hereinafter: SCTM) and other competent bodies

2015

2016

The exact situation determined concerning the lack of coverage on certain territories with corresponding physical and urban plans and prepared the action plan that specifies the dynamics of development and adoption of missing planning documents


А6Legislation reform which stipulates the payment of contribution fee for construction land development


Ministry of Finance

2015 Clear criteria determined for calculating the contribution fee for of the construction land development


А7Amend the Regulations on the development and maintenance of real estate cadastre ("Official Gazette of the Republic of Serbia", No. 46/99)

Republic Geodetic Authority 2015

Prescribed obligations of registering of pre-emption in the real estate cadastre to clearly emphasize this right and to uniformly apply it in all units of the cadastre

Enabled the registration of all leases without restrictions


А8 Shorten the time needed to register mortgage on the property, as well as to cancel it Republic Geodetic Authority 2015

Simplified and shortened the administrative procedures for the registration and cancellation of the mortgage

Staff in the local cadastre offices trained in the implementation of administrative procedures



62 |

ACTION PLAN

Мeasure М4 - Improvment the regulatory framework of inspection control М4 - Improvment the regulatory framework of inspection control


А1 Adoption of a system law regulating the area of the inspection control

Ministry of Public Administration and Local Self-government

2015 Established the new single legal framework for inspection controlNational budget –allocation for regular operation with the support of USAID BEP - Business Enabling Project

А2The adoption of sub-legal regulations and laws for the execution of the system law regulating the area of the inspection control

Ministry of Public Administration and Local Self-government and other competent bodies

2015 Passed sub-legal regulations and laws for the implementation of the Law on Inspection Control


А3 Reconciliation of sector laws with the system law governing the inspection control Competent state bodies

2015

2016Harmonized special laws governing inspection control in certain areas with the provisions of the system law regulating inspection control

National budget –allocation for regular operation with support from the project: “Development of the Private Sector” IPA 2013 of 2016-Service contract

А4 Ensure work coordination of inspection services Ministry of Public Administration and Local Self-government

2015Established a special body that will be responsible for coordination of inspection services, their cooperation, information exchange and improving the effectiveness of the inspection control


Мeasure М5 – Improvment the legislative framework in the field of employment and employment rights М5 – Improvment the legislative framework in the field of employment and employment rights


А1 Reform of labor legislation and safety at work regulations

Ministry of Labour, Employment, Veteran and Social Affairs

2015

Codification of labor legislation

Strengthening the function of labor inspection

Compliance of the Law on Safety and Health at Work (“Official Gazette of the Republic of Serbia”, No. 101/05) with the European Union directives (minimum of 70%)


Мeasure М6 –Regulatory reform of sector regulations in the business of SMEs М6 –Regulatory reform of sector regulations in the business of SMEs


А1

Amend the Regulation on conditions and manner of conducting catering services, the method of providing catering services, the classification of catering establishments and the minimum technical requirements for planning and equipping of catering facilities ("Official Gazette of the Republic of Serbia", No. 48/12)

Ministry of Trade, Tourism and Telecommunications 2015

Adoption of Revised Policy on the conditions and manner of conducting catering services, the method of providing catering services, the classification of catering establishments and the minimum technical requirements for planning and equipping catering facilities with more adequately defined system of standards for categorization of the compulsory elements


А2

Amend the Rules on minimum technical and sanitary-hygienic conditions for the provision of catering services in homes and rural households ("Official Gazette of the Republic of Serbia", No. 41/10 and 48/12)


Adoption of Revised Policy on the minimum technical and sanitary-hygienic conditions for the provision of catering services in homes and rural households with more adequately defined system of standards for categorization of the compulsory elements


А3 The reform of regulations governing the field of tourism

Ministry of Trade, Tourism and Telecommunications

SCTM2015

Increased mandate of the tourist inspection - inspectors authorized for controlling fiscal cash registers

Prohibition for associations to organize trips in the country which last for more than two days and trips abroad (trips in the country which last for more than two days or trips abroad can be organized only by a registered travel agency)

The SCTM conducted promotional activities and workshops with local self-governments in order to improve the application of the new provisions of the Law on tourism

Introduced ban for associations to provide catering services


| 63

Pillar 1

Мeasure М4 - Improvment the regulatory framework of inspection control М4 - Improvment the regulatory framework of inspection control


А1 Adoption of a system law regulating the area of the inspection control

Ministry of Public Administration and Local Self-government

2015 Established the new single legal framework for inspection controlNational budget –allocation for regular operation with the support of USAID BEP - Business Enabling Project

А2The adoption of sub-legal regulations and laws for the execution of the system law regulating the area of the inspection control

Ministry of Public Administration and Local Self-government and other competent bodies

2015 Passed sub-legal regulations and laws for the implementation of the Law on Inspection Control


А3 Reconciliation of sector laws with the system law governing the inspection control Competent state bodies

2015

2016Harmonized special laws governing inspection control in certain areas with the provisions of the system law regulating inspection control

National budget –allocation for regular operation with support from the project: “Development of the Private Sector” IPA 2013 of 2016-Service contract

А4 Ensure work coordination of inspection services Ministry of Public Administration and Local Self-government

2015Established a special body that will be responsible for coordination of inspection services, their cooperation, information exchange and improving the effectiveness of the inspection control


Мeasure М5 – Improvment the legislative framework in the field of employment and employment rights М5 – Improvment the legislative framework in the field of employment and employment rights


А1 Reform of labor legislation and safety at work regulations


2015

Codification of labor legislation

Strengthening the function of labor inspection

Compliance of the Law on Safety and Health at Work (“Official Gazette of the Republic of Serbia”, No. 101/05) with the European Union directives (minimum of 70%)


Мeasure М6 –Regulatory reform of sector regulations in the business of SMEs М6 –Regulatory reform of sector regulations in the business of SMEs


А1

Amend the Regulation on conditions and manner of conducting catering services, the method of providing catering services, the classification of catering establishments and the minimum technical requirements for planning and equipping of catering facilities ("Official Gazette of the Republic of Serbia", No. 48/12)


Adoption of Revised Policy on the conditions and manner of conducting catering services, the method of providing catering services, the classification of catering establishments and the minimum technical requirements for planning and equipping catering facilities with more adequately defined system of standards for categorization of the compulsory elements


А2

Amend the Rules on minimum technical and sanitary-hygienic conditions for the provision of catering services in homes and rural households ("Official Gazette of the Republic of Serbia", No. 41/10 and 48/12)


Adoption of Revised Policy on the minimum technical and sanitary-hygienic conditions for the provision of catering services in homes and rural households with more adequately defined system of standards for categorization of the compulsory elements


А3 The reform of regulations governing the field of tourism


SCTM2015

Increased mandate of the tourist inspection - inspectors authorized for controlling fiscal cash registers

Prohibition for associations to organize trips in the country which last for more than two days and trips abroad (trips in the country which last for more than two days or trips abroad can be organized only by a registered travel agency)

The SCTM conducted promotional activities and workshops with local self-governments in order to improve the application of the new provisions of the Law on tourism

Introduced ban for associations to provide catering services


64 |

ACTION PLAN

А4

Modernize the registration process and verification of timetables in intercity transport and the approval process for timetables in the international public regular-service transport of passengers


2016 Adopted the Law on transport of passengers in road traffic

National budget –allocation for regular operation with support from the project: "Development of the Private Sector" IPA 2013 of 2016-service contract

А5Monitoring the implementation and impact of the Law on Consumer Protection on the operations of business entities


Conducted analysis of the possibility of amending the Law on consumer protection, so as to reduce room for abuse at the expense of the seller, with full respect for the rights of consumers


Мeasure М7 - Support for the implementation of regulatory reform at the provincial and local levels М7 - Support for the implementation of regulatory reform at the provincial and local levels


А1

Support to ULS in implementing the new legal framework for the planning and construction and phases of the unified procedure applied in this area by the bodies of local self-government


2015Minimum of 3 training sessions held

Minimum of 30 ULS officials trained


А2 Support to ULS in abolishing the fees that are particular burden on the economy

Ministry of Finance

Ministry of Economy

ULS

2015

Abolition of fees that ULS authorities charged for submitting charges in relation to the unlawful conduct of their bodies and organizations, as well as the abolition of fees for which there is no measurable service that ULS organ offers to the applicants


А3

The reform of administrative procedures implemented by ULS by introduction of the obligation to officially obtain information on registration of legal entities, tax identification number (hereinafter: TIN), SV form and others

Ministry of Finance

ULS

SCTM

2015

The ULSs abolished the practice of public revenue administrations seeking documentation from taxpayers that is already publicly available on the website of the Business Registers Agency (registration data, TIN), as well as information that is not necessary for the proceedings in question (SV form, specimen signature cards)


1.2 DIMENSION SPECIFIC OBJECTIVE NAME IMPROVMENT THE EFFECTIVENESS OF THE IMPLEMENTATION OF ADMINISTRATIVE PROCEDURES

Measure М1 - Amendments to the regulatory framework governing the implementation of administrative procedures in state administration bodies, autonomous regions and local self-governments

М1 - Amendments to the regulatory framework governing the implementation of administrative procedures in state administration bodies, autonomous regions and local self-governments


А1

Amendments to the Law on State Administration ("Official Gazette of the Republic of Serbia", No. 79/05, 101/07, 95/10 и 99/14) and other regulations governing the implementation of administrative procedures in state administration bodies, autonomous regions and local self-governments

Ministry of Public Administration and Local Self-Government

2016

The introduction of the obligations of all authorities who perform certain public duties to establish maps of administrative procedures2 before them;

The introduction of obligations to publish on their websites a register of all administrative procedures implemented together with maps of these procedures.


with support from the project: “Development of the Private Sector” IPA 2013 of 2016-service contract

А2

Amendments to the Law on Public Enterprises ("Official Gazette of the Republic of Serbia", No. 119/12, 116/13 and 44/14-other law) to impose the obligation to adopt administrative proceedings maps in which the parties exercise certain rights and/or undertake certain obligations for public companies that perform certain public duties


Introduced obligation to set up maps of administrative procedures carried out before the organs of public enterprises; The introduction of obligations to publish on their websites a list of all administrative procedures implemented together with maps of these procedures.


А3

Amendment to the Regulations on the manner and procedure for exercising compulsory health insurance rights ("Official Gazette of the Republic of Serbia", No. 10/10, 18/10-correction, 46/10, 52/10-correction, 80/10, 60/11-CC, 1/13)

National Health Insurance Fund- NHIF

Central registry of compulsory social insurance

2015

Created conditions for electronic verification of contributions and pensionable insurance

Reduced number of documents on the basis of which the right to wage compensation during temporary inability to work is exercised - abolish the obligation to submit evidence that due contributions have been paid, as well as the obligation to submit proof of prior pensionable insurance paid


| 65

Pillar 1

А4

Modernize the registration process and verification of timetables in intercity transport and the approval process for timetables in the international public regular-service transport of passengers


2016 Adopted the Law on transport of passengers in road traffic

National budget –allocation for regular operation with support from the project: "Development of the Private Sector" IPA 2013 of 2016-service contract

А5Monitoring the implementation and impact of the Law on Consumer Protection on the operations of business entities


Conducted analysis of the possibility of amending the Law on consumer protection, so as to reduce room for abuse at the expense of the seller, with full respect for the rights of consumers


Мeasure М7 - Support for the implementation of regulatory reform at the provincial and local levels М7 - Support for the implementation of regulatory reform at the provincial and local levels


А1

Support to ULS in implementing the new legal framework for the planning and construction and phases of the unified procedure applied in this area by the bodies of local self-government


2015Minimum of 3 training sessions held

Minimum of 30 ULS officials trained


А2 Support to ULS in abolishing the fees that are particular burden on the economy

Ministry of Finance

Ministry of Economy

ULS

2015

Abolition of fees that ULS authorities charged for submitting charges in relation to the unlawful conduct of their bodies and organizations, as well as the abolition of fees for which there is no measurable service that ULS organ offers to the applicants


А3

The reform of administrative procedures implemented by ULS by introduction of the obligation to officially obtain information on registration of legal entities, tax identification number (hereinafter: TIN), SV form and others

Ministry of Finance

ULS

SCTM

2015

The ULSs abolished the practice of public revenue administrations seeking documentation from taxpayers that is already publicly available on the website of the Business Registers Agency (registration data, TIN), as well as information that is not necessary for the proceedings in question (SV form, specimen signature cards)


1.2 DIMENSION SPECIFIC OBJECTIVE NAME IMPROVMENT THE EFFECTIVENESS OF THE IMPLEMENTATION OF ADMINISTRATIVE PROCEDURES

Measure М1 - Amendments to the regulatory framework governing the implementation of administrative procedures in state administration bodies, autonomous regions and local self-governments

М1 - Amendments to the regulatory framework governing the implementation of administrative procedures in state administration bodies, autonomous regions and local self-governments


А1

Amendments to the Law on State Administration ("Official Gazette of the Republic of Serbia", No. 79/05, 101/07, 95/10 и 99/14) and other regulations governing the implementation of administrative procedures in state administration bodies, autonomous regions and local self-governments


2016

The introduction of the obligations of all authorities who perform certain public duties to establish maps of administrative procedures2 before them;

The introduction of obligations to publish on their websites a register of all administrative procedures implemented together with maps of these procedures.


with support from the project: “Development of the Private Sector” IPA 2013 of 2016-service contract

А2

Amendments to the Law on Public Enterprises ("Official Gazette of the Republic of Serbia", No. 119/12, 116/13 and 44/14-other law) to impose the obligation to adopt administrative proceedings maps in which the parties exercise certain rights and/or undertake certain obligations for public companies that perform certain public duties


Introduced obligation to set up maps of administrative procedures carried out before the organs of public enterprises; The introduction of obligations to publish on their websites a list of all administrative procedures implemented together with maps of these procedures.


А3

Amendment to the Regulations on the manner and procedure for exercising compulsory health insurance rights ("Official Gazette of the Republic of Serbia", No. 10/10, 18/10-correction, 46/10, 52/10-correction, 80/10, 60/11-CC, 1/13)

National Health Insurance Fund- NHIF

Central registry of compulsory social insurance

2015

Created conditions for electronic verification of contributions and pensionable insurance

Reduced number of documents on the basis of which the right to wage compensation during temporary inability to work is exercised - abolish the obligation to submit evidence that due contributions have been paid, as well as the obligation to submit proof of prior pensionable insurance paid


66 |

ACTION PLAN

А4 The reform of regulations governing the area of state administration


2016

Amendments to the Law on state administration which introduce a ban for state administration bodies on requiring the parties to submit data from records or registers maintained by other state authorities, territorial autonomy bodies or local self-government bodies, in the process of solving the rights, obligations or legal interests of a natural or legal person

Prescribed penalties for non-compliance with these prohibitions

National budget –allocation for regular operation with support from the project: “Development of the Private Sector” IPA 2013 of 2016-service contract

А5

The reform of the regulations governing the exercise of the right to compensation of salary during a maternity leave, absence from work for child care and absence from work due to special child care


2015

Reduced number of documents to be submitted for the realization of the right to financial compensation during maternity leave (abolished the obligation to submit a birth certificate, employment contract, photocopies of the application for pension and disability insurance or health insurance, photocopy of the employment record and confirmation of the number of employees).


А6Strengthening the protection of the rights of economic entities in the proceedings before public administration

CCIS

Ministry of Economy

Ombudsman

2015

2016

Established a mechanism for permanent dialogue between representatives of the economy, public administration and the Ombudsman

Established an efficient system for examining complaints of business entities about the performance of public administration bodies

Prepared a training program and workshop on the protection of the rights of business entities from “bad governance”

Held a minimum of three training sessions and workshops organized by SCC, the Ministry of Economy and the Ombudsman in 2015

Prepared programs for trainings and workshops that will be organized through regional and local organizations from 2016


A8 Amendments to the Law on Tax Procedure and Tax Administration Ministry of Finance 2016 Time-limited process of tax audits in a business entity for

unobstructed implementation of Article 29, paragraph 9National budget –allocation for regular operation

Мeasure М2 - Continued work on strengthening the electronic administration system М2 - Continued work on strengthening the electronic administration system


А1 Establishing a single, comprehensive and updated electronic base of administrative procedures

Directorate for e-Government in cooperation with the state authorities and organizations implementing legal procedures towards third parties

2015

Creating the necessary sub-legal acts to allow for the establishment of a unique database of administrative procedures on the e-Government portal

Established a unique database of administrative procedures on the e-Government Portal - collected and published maps of administrative procedures, at a minimum for building permits, energy permits, waste management permits, work permits for foreigners, licenses for geological exploration and mining


А2

To facilitate the issuance of various types of certificates electronically with a certified electronic signature, or momentarily in the offices of the relevant body.

Ministry of Finance-Tax Administration

Ministry of Justice


SBRA

2015

2016

1. Ministry of Justice - Court Rules changes so as to permit the issuance of certificates that no criminal or misdemeanor proceedings are being conducted against a person, or certificates that a person in a given period was not convicted of a misdemeanor or economic offense electronically with certified electronic signature

2. Enabled an efficient process of issuing various types of certificates, electronically with a certified electronic signature, or in person, in the offices of the relevant body, for the following agencies and organizations:

Tax administration - tax clearance certificate SBRA - an extract from the Register and confirmation that a person is not prohibited to carry out activities


А3 Enable electronic registration of business entities

SBRA

Ministry of Finance


Ministry of Economy

2015

Provided prerequisites (assembling electronic documentation, submitting electronic applications, notarization of electronic documents by a notary public, electronic collection of fees for the registration process) for the submission of the registration application electronically in accordance with the Law on registration procedure in the Business Registers Agency ("Official Gazette of the Republic of Serbia" No. 99/11 and 83/14)

Own revenues of the Business Registers Agency (fee income)

| 67

Pillar 1

А4 The reform of regulations governing the area of state administration


2016

Amendments to the Law on state administration which introduce a ban for state administration bodies on requiring the parties to submit data from records or registers maintained by other state authorities, territorial autonomy bodies or local self-government bodies, in the process of solving the rights, obligations or legal interests of a natural or legal person

Prescribed penalties for non-compliance with these prohibitions


А5

The reform of the regulations governing the exercise of the right to compensation of salary during a maternity leave, absence from work for child care and absence from work due to special child care


2015

Reduced number of documents to be submitted for the realization of the right to financial compensation during maternity leave (abolished the obligation to submit a birth certificate, employment contract, photocopies of the application for pension and disability insurance or health insurance, photocopy of the employment record and confirmation of the number of employees).


А6Strengthening the protection of the rights of economic entities in the proceedings before public administration

CCIS

Ministry of Economy

Ombudsman

2015

2016

Established a mechanism for permanent dialogue between representatives of the economy, public administration and the Ombudsman

Established an efficient system for examining complaints of business entities about the performance of public administration bodies

Prepared a training program and workshop on the protection of the rights of business entities from “bad governance”

Held a minimum of three training sessions and workshops organized by SCC, the Ministry of Economy and the Ombudsman in 2015

Prepared programs for trainings and workshops that will be organized through regional and local organizations from 2016


A8 Amendments to the Law on Tax Procedure and Tax Administration Ministry of Finance 2016 Time-limited process of tax audits in a business entity for

unobstructed implementation of Article 29, paragraph 9National budget –allocation for regular operation

Мeasure М2 - Continued work on strengthening the electronic administration system М2 - Continued work on strengthening the electronic administration system


А1 Establishing a single, comprehensive and updated electronic base of administrative procedures

Directorate for e-Government in cooperation with the state authorities and organizations implementing legal procedures towards third parties

2015

Creating the necessary sub-legal acts to allow for the establishment of a unique database of administrative procedures on the e-Government portal

Established a unique database of administrative procedures on the e-Government Portal - collected and published maps of administrative procedures, at a minimum for building permits, energy permits, waste management permits, work permits for foreigners, licenses for geological exploration and mining


А2

To facilitate the issuance of various types of certificates electronically with a certified electronic signature, or momentarily in the offices of the relevant body.

Ministry of Finance-Tax Administration

Ministry of Justice


SBRA

2015

2016

1. Ministry of Justice - Court Rules changes so as to permit the issuance of certificates that no criminal or misdemeanor proceedings are being conducted against a person, or certificates that a person in a given period was not convicted of a misdemeanor or economic offense electronically with certified electronic signature

2. Enabled an efficient process of issuing various types of certificates, electronically with a certified electronic signature, or in person, in the offices of the relevant body, for the following agencies and organizations:

Tax administration - tax clearance certificate SBRA - an extract from the Register and confirmation that a person is not prohibited to carry out activities


А3 Enable electronic registration of business entities

SBRA

Ministry of Finance


Ministry of Economy

2015

Provided prerequisites (assembling electronic documentation, submitting electronic applications, notarization of electronic documents by a notary public, electronic collection of fees for the registration process) for the submission of the registration application electronically in accordance with the Law on registration procedure in the Business Registers Agency ("Official Gazette of the Republic of Serbia" No. 99/11 and 83/14)

Own revenues of the Business Registers Agency (fee income)

68 |

ACTION PLAN

А4Enable electronic registration of financial leasing contracts and contracts of pledge (Financial Leasing Register and Register of Pledges)

SBRA 2016 Established a mechanism for electronic registration of financial leasing contracts and contracts of pledge

Own revenues of the Business Registers Agency (fee income) with support from the project: “Development of the Private Sector” IPA 2013 of 2016-service contract

А5 Enable electronic submission of annual financial statements SBRA

2015

2016

In 2015, start the process of introduction of the electronic signature in the registration system of financial statements so that by the end of that year, the electronic submission of financial statements is enabled for about 12,000 large, medium and small enterprises in accordance with the Law on Accounting (“Off. Gazette of RS” No. 62/13)

From January 1, 2016, this obligation shall be established for all 160,000 legal entities who are obliged to submit statements


А6

Electronic registration of corporate income tax, tax on income from self-employment to which the tax is paid by lump sum taxation, tax on income from self-employment for entrepreneurs who keep books, the tax on transfer of absolute rights, as well as the organization of external and internal training to use electronic services for submiting tax registrations electronically

Ministry of Finance - Tax Administration

2015

2016

2015:

Fully establishing a system of electronic applications for: corporate income tax and annual income tax of citizens

Organized a minimum of two courses for the use of electronic services for submiting tax registrations electronically

2016:

Fully establishing a system of electronic applications for the mentioned taxes



А7 Improved public procurement portal Public Procurement Office 2015

The ability to publish purchasers' procurement plans, publishing procurements carried out according to international procedures, improving search of the decisions of the republican committee for the protection of rights in public procurement procedures, setting up a registry of public contracts put into operation at the portal of public procurement


А8 Implementation of trainings and promotion of electronic public procurements

Public Procurement Office

All purchasers2016 Number of conducted trainings - two per year N/A

А9 The establishment of a unified information system for inspection - E-inspector


2015

2016Established an information system for the inspection services

National budget –allocation for regular operation with the international support of USAID BEP - Business Enabling Project, the World Bank, IPA funds and other donors

А10 Adoption of instructions in connection with issuance of tax certificates related to tax clearance


2015

2016

Issuing tax certificates on the spot to taxpayers who have no debt

Enabling the issuance of tax certificates electronically


Мeasure М3 - Establishing the one-stop shop system for the provision of as large a number of services as possible М3 - Establishing the one-stop shop system for the provision of as large a number of services as possible


А1 Establishing the one-stop shop system for permits in the building process


SCTM

ULS

2015 Established the one-stop shop system - unified procedure for issuing construction permits in ULS


| 69

Pillar 1

А4Enable electronic registration of financial leasing contracts and contracts of pledge (Financial Leasing Register and Register of Pledges)

SBRA 2016 Established a mechanism for electronic registration of financial leasing contracts and contracts of pledge


А5 Enable electronic submission of annual financial statements SBRA

2015

2016

In 2015, start the process of introduction of the electronic signature in the registration system of financial statements so that by the end of that year, the electronic submission of financial statements is enabled for about 12,000 large, medium and small enterprises in accordance with the Law on Accounting (“Off. Gazette of RS” No. 62/13)

From January 1, 2016, this obligation shall be established for all 160,000 legal entities who are obliged to submit statements


А6

Electronic registration of corporate income tax, tax on income from self-employment to which the tax is paid by lump sum taxation, tax on income from self-employment for entrepreneurs who keep books, the tax on transfer of absolute rights, as well as the organization of external and internal training to use electronic services for submiting tax registrations electronically


2015

2016

2015:

Fully establishing a system of electronic applications for: corporate income tax and annual income tax of citizens


2016:

Fully establishing a system of electronic applications for the mentioned taxes



А7 Improved public procurement portal Public Procurement Office 2015

The ability to publish purchasers' procurement plans, publishing procurements carried out according to international procedures, improving search of the decisions of the republican committee for the protection of rights in public procurement procedures, setting up a registry of public contracts put into operation at the portal of public procurement


А8 Implementation of trainings and promotion of electronic public procurements

Public Procurement Office

All purchasers2016 Number of conducted trainings - two per year N/A

А9 The establishment of a unified information system for inspection - E-inspector


2015

2016Established an information system for the inspection services

National budget –allocation for regular operation with the international support of USAID BEP - Business Enabling Project, the World Bank, IPA funds and other donors

А10 Adoption of instructions in connection with issuance of tax certificates related to tax clearance


2015

2016

Issuing tax certificates on the spot to taxpayers who have no debt

Enabling the issuance of tax certificates electronically


Мeasure М3 - Establishing the one-stop shop system for the provision of as large a number of services as possible М3 - Establishing the one-stop shop system for the provision of as large a number of services as possible


А1 Establishing the one-stop shop system for permits in the building process


SCTM

ULS

2015 Established the one-stop shop system - unified procedure for issuing construction permits in ULS


70 |

ACTION PLAN

А2

Carry out all the activities necessary for the full functioning of the Central Registry of Compulsory Social Insurance (hereinafter: CRCSI), to integrate Tax Administration and CRCSI in the part relating to the additional control of collection of contributions per individual and harmonization of regulations

Ministry of Finance-CRCSI

Pension and Disability Insurance Fund (hereinafter PDI fund)

National Health Insurance Fund (hereinafter NHIF)

Tax Administration and competent ministries

2015

Established data exchange between the Tax Administration and CRCSI and created conditions that CRCSI delivers data on paid contributions for pension and disability insurance, health insurance and the case of unemployment of National Employment Service

The amended regulations for the purpose of smooth establishment of a system


Мeasure М4 - Monitoring the effectiveness of implementation of administrative procedures and measuring administrative costs of the economy

М4 - Monitoring the effectiveness of implementation of administrative procedures and measuring administrative costs of the economy


А1 Development of standards for measuring administrative burdens

Republic Secretariat for Public Policies (hereinafter RSPP)

Ministry of Economy

2015 Established and adopted the standard cost model.National budget –allocation for regular operation with the support of USAID BEP - Business Enabling Project

А2 Development of guidelines for the application of the standard cost model

RSPP

Ministry of Economy2015 Created and electronically available instructions


А3 Adoption or amendment of the relevant acts

RSPP

Ministry of Economy

Republic Secretariat for Legislation

General Secretariat of the Government

2015

Introduced obligations for a legislation proponent, when making a new or amending existing regulations, to explain which new burden or obligation is introduced for the economy, which current burden is increased or reduced by it, or which current burden is being lifted


Мeasure М5 - Improvment conditions for the participation of SMEs in public procurements М5 - Improvment conditions for the participation of SMEs in public procurements


А1Implementation of trainings on improving mutual communication between the purchaser and the bidder

Public Procurement Office 2016 Nubmer of conducted trainings-two per year N/A

А2 Guidelines to increase the participation of SMEs in public procurement procedures Public Procurement Office 2016 Guidelines adopted to increase the participation of SMEs in public

procurement procedures N/A

1.3 DIMENSION SPECIFIC OBJECTIVE NAME INCREASING THE TRANSPARENCY OF THE REGULATION AND PUBLIC POLICY ADOPTION PROCESS

Measure М1 -Obligation to involve representatives of the economy with the process of adopting regulations and public policies and increasing predictability of changes in operating conditions

М1 -Obligation to involve representatives of the economy with the process of adopting regulations and public policies and increasing predictability of changes in operating conditions


А1Prepared and adopted guidelines aimed at increasing the predictability of the legal framework of business


The adopted guidelines by which the Government recommends to the state administration bodies in the preparation of regulations that affect the economy and business environment to predict the entry into force of these regulations on two specific date during the year, with some exceptions in which it may be possible to depart from this rule.


2 The map of the administrative procedure is a flow chart of the process in stages from start-up to the final completion of the procedure. The map of administrative procedures contains a description and assessment of the duration

| 71

Pillar 1

А2

Carry out all the activities necessary for the full functioning of the Central Registry of Compulsory Social Insurance (hereinafter: CRCSI), to integrate Tax Administration and CRCSI in the part relating to the additional control of collection of contributions per individual and harmonization of regulations

Ministry of Finance-CRCSI

Pension and Disability Insurance Fund (hereinafter PDI fund)

National Health Insurance Fund (hereinafter NHIF)

Tax Administration and competent ministries

2015

Established data exchange between the Tax Administration and CRCSI and created conditions that CRCSI delivers data on paid contributions for pension and disability insurance, health insurance and the case of unemployment of National Employment Service

The amended regulations for the purpose of smooth establishment of a system


Мeasure М4 - Monitoring the effectiveness of implementation of administrative procedures and measuring administrative costs of the economy

М4 - Monitoring the effectiveness of implementation of administrative procedures and measuring administrative costs of the economy


А1 Development of standards for measuring administrative burdens

Republic Secretariat for Public Policies (hereinafter RSPP)

Ministry of Economy

2015 Established and adopted the standard cost model.National budget –allocation for regular operation with the support of USAID BEP - Business Enabling Project

А2 Development of guidelines for the application of the standard cost model

RSPP

Ministry of Economy2015 Created and electronically available instructions


А3 Adoption or amendment of the relevant acts

RSPP

Ministry of Economy



2015

Introduced obligations for a legislation proponent, when making a new or amending existing regulations, to explain which new burden or obligation is introduced for the economy, which current burden is increased or reduced by it, or which current burden is being lifted


Мeasure М5 - Improvment conditions for the participation of SMEs in public procurements М5 - Improvment conditions for the participation of SMEs in public procurements


А1Implementation of trainings on improving mutual communication between the purchaser and the bidder

Public Procurement Office 2016 Nubmer of conducted trainings-two per year N/A

А2 Guidelines to increase the participation of SMEs in public procurement procedures Public Procurement Office 2016 Guidelines adopted to increase the participation of SMEs in public

procurement procedures N/A

1.3 DIMENSION SPECIFIC OBJECTIVE NAME INCREASING THE TRANSPARENCY OF THE REGULATION AND PUBLIC POLICY ADOPTION PROCESS

Measure М1 -Obligation to involve representatives of the economy with the process of adopting regulations and public policies and increasing predictability of changes in operating conditions

М1 -Obligation to involve representatives of the economy with the process of adopting regulations and public policies and increasing predictability of changes in operating conditions


А1Prepared and adopted guidelines aimed at increasing the predictability of the legal framework of business


The adopted guidelines by which the Government recommends to the state administration bodies in the preparation of regulations that affect the economy and business environment to predict the entry into force of these regulations on two specific date during the year, with some exceptions in which it may be possible to depart from this rule.


of each step in the process, as well as the necessary documents and costs related to the implementation of the administrative procedure.

72 |

ACTION PLAN

А2 Hold a public hearing in accordance with the Government's rules of procedure

The competent authorities of the state administration, the competent authorities and bodies of the Government

2015 Public hearings conducted for 80% of legislative proposals which affect the business environment.


А3

The inclusion of business representatives in all stages of the preparation of regulations that affect the business environment, especially as parts of working groups

Ministry of Economy

RSPP



2015

The relevant act prescribes the obligation that the proponents of regulation when proposing regulations clearly specify how many business representatives participated in the working group that prepared the draft law


А4

Continuous dialogue of ULS with representatives of the economic sector to help cooperation and coordination on issues of importance to the economy

ULS


Dialogue established on the territory of 40% of ULS

The same percentage of organized partnerships of the local economy and ULSs for supporting the local economy (business councils, public-private partnerships)

National budget –allocation for regular operation with support from the project: „Development of the Private Sector“ IPA 2013 of 2016-service contract

А5Continuation of the activities of the CCIS SMEs Forum in dialogue with the Government and the Ministry of Economy

CCIS

Ministry of Economy

2015

2016Held at least 1 meeting per year

CCIS Budget with support from the project: „Development of the Private Sector“ IPA 2013 of 2016-service contract

А6

Keeping industry representatives informed on the accession negotiations with the European union (hereinafter EU) - topics which directly affect the operations of SMEs

CCIS

European Integration Office

competent ministries

2015

2016Held at least 2 meetings per year


Measure М2 – Forming the Council for small and medium enterprises, entrepreneurship and competitiveness М2 – Forming the Council for small and medium enterprises, entrepreneurship and competitiveness


А1Forming Council for small and medium enterprises, entrepreneurship and competitiveness by the Government of the Republic of Serbia

Ministry of Economy

Government2015

Formed Council for small and medium enterprises, entrepreneurship and competitiveness whose members are representatives of relevant ministries, business associations, the scientific community, which meets on a quarterly basis


Measure М3 –Establishing a mechanism for monitoring the effects of the application of regulations that affect the business environment

М3 –Establishing a mechanism for monitoring the effects of the application of regulations that affect the business environment


А1

Establishing a mechanism for mandatory implementation of 'ex post' analysis of the effects of the most important regulations that affect the economy

RSPP

Ministry of Economy



2015Adopted amendments to the relevant act and established the obligation of submitting reports and 'ex post' analysis of the relevant ministry to RSPP

With the support of the IPA project- Reforming policy coordination and the Centre of the Government

А2

Improvement of the methodological and analytical base for monitoring trends in the economy, decision-making and monitoring the effects of the application of regulations that affect the economy

RSPP

Statistical Office of the Republic of Serbia (hereinafter SORS)

Ministry of Economy

CCIS

2015Created methodology for tracking trends in the economy and monitoring the effects of regulations that affect the economy for the sake of creating public policies and the preparation of regulations


| 73

Pillar 1

А2 Hold a public hearing in accordance with the Government's rules of procedure

The competent authorities of the state administration, the competent authorities and bodies of the Government

2015 Public hearings conducted for 80% of legislative proposals which affect the business environment.


А3

The inclusion of business representatives in all stages of the preparation of regulations that affect the business environment, especially as parts of working groups

Ministry of Economy

RSPP



2015

The relevant act prescribes the obligation that the proponents of regulation when proposing regulations clearly specify how many business representatives participated in the working group that prepared the draft law


А4

Continuous dialogue of ULS with representatives of the economic sector to help cooperation and coordination on issues of importance to the economy

ULS


Dialogue established on the territory of 40% of ULS

The same percentage of organized partnerships of the local economy and ULSs for supporting the local economy (business councils, public-private partnerships)


А5Continuation of the activities of the CCIS SMEs Forum in dialogue with the Government and the Ministry of Economy

CCIS

Ministry of Economy

2015

2016Held at least 1 meeting per year


А6

Keeping industry representatives informed on the accession negotiations with the European union (hereinafter EU) - topics which directly affect the operations of SMEs

CCIS

European Integration Office

competent ministries

2015

2016Held at least 2 meetings per year


Measure М2 – Forming the Council for small and medium enterprises, entrepreneurship and competitiveness М2 – Forming the Council for small and medium enterprises, entrepreneurship and competitiveness


А1Forming Council for small and medium enterprises, entrepreneurship and competitiveness by the Government of the Republic of Serbia

Ministry of Economy

Government2015

Formed Council for small and medium enterprises, entrepreneurship and competitiveness whose members are representatives of relevant ministries, business associations, the scientific community, which meets on a quarterly basis


Measure М3 –Establishing a mechanism for monitoring the effects of the application of regulations that affect the business environment

М3 –Establishing a mechanism for monitoring the effects of the application of regulations that affect the business environment


А1

Establishing a mechanism for mandatory implementation of 'ex post' analysis of the effects of the most important regulations that affect the economy

RSPP

Ministry of Economy



2015Adopted amendments to the relevant act and established the obligation of submitting reports and 'ex post' analysis of the relevant ministry to RSPP


А2

Improvement of the methodological and analytical base for monitoring trends in the economy, decision-making and monitoring the effects of the application of regulations that affect the economy

RSPP

Statistical Office of the Republic of Serbia (hereinafter SORS)

Ministry of Economy

CCIS

2015Created methodology for tracking trends in the economy and monitoring the effects of regulations that affect the economy for the sake of creating public policies and the preparation of regulations


74 |

ACTION PLAN

Measure М4–Inclusion of tests of influence on small and medium-sized enterprises in analysis of effects of regulations

М4–Inclusion of tests of influence on small and medium-sized enterprises in analysis of effects of regulations


А1Establishing a methodology for determining the impact of regulations on the economy, especially on SMEs

RSPP

Ministry of Economy



2015 Established the methodologyNational budget –allocation for regular operation with the support of USAID BEP - Business Enabling Project

А2Organizing trainings for the application of the methodology for determining the impact of regulations on SMEs (hereinafter: SME Test)

Human Resources Management Service (Center for Professional Development)

RSPP

Ministry of Economy

2015

2016

Adopted the training program and organization of trainings - number of trainings conducted in 2015 - at least two

From 2016, introduce the rule that such trainings are held regularly according to the scheduled program created by the human resources management service, at least once every 3 months


А3 Regulatory impact assessment pilot in which the SME Test would be included

RSPP

Ministry of Economy

Ministry of Finance

2016 Analyzes conducted with at least three regulations


А4Adoption or amendments to the relevant act to include the SME test as a mandatory element of the regulatory impact assessment

RSPP

The Ministry of Economy



2015

The SME Test introduced as a compulsory part of regulatory impact assessment to all the regulations for which it is determined, according to the pre-established criteria, that they can have a significant impact on the operations of SMEs.


| 75

Pillar 1

Measure М4–Inclusion of tests of influence on small and medium-sized enterprises in analysis of effects of regulations

М4–Inclusion of tests of influence on small and medium-sized enterprises in analysis of effects of regulations


А1Establishing a methodology for determining the impact of regulations on the economy, especially on SMEs

RSPP

Ministry of Economy



2015 Established the methodologyNational budget –allocation for regular operation with the support of USAID BEP - Business Enabling Project

А2Organizing trainings for the application of the methodology for determining the impact of regulations on SMEs (hereinafter: SME Test)

Human Resources Management Service (Center for Professional Development)

RSPP

Ministry of Economy

2015

2016

Adopted the training program and organization of trainings - number of trainings conducted in 2015 - at least two

From 2016, introduce the rule that such trainings are held regularly according to the scheduled program created by the human resources management service, at least once every 3 months


А3 Regulatory impact assessment pilot in which the SME Test would be included

RSPP

Ministry of Economy

Ministry of Finance

2016 Analyzes conducted with at least three regulations


А4Adoption or amendments to the relevant act to include the SME test as a mandatory element of the regulatory impact assessment

RSPP

The Ministry of Economy



2015

The SME Test introduced as a compulsory part of regulatory impact assessment to all the regulations for which it is determined, according to the pre-established criteria, that they can have a significant impact on the operations of SMEs.


76 |

ACTION PLAN

PILLAR-2 OVERALL OBJECTIVE – IMPROVMENT ACCESS TO SOURCES OF FUNDING

2.1 DIMENSION SPECIFIC OBJECTIVE NAME IMPROVMENT THE QUALITY OF THE BANKING SECTOR OFFER FOR SMES

Measure М1 -Improvment enforcement procedure М1 -Improvment enforcement procedure


А1

Support to a more efficient implementation of the Law on Enforcement and Security ("Official Gazette of the Republic of Serbia", No. 31/11, 99/11 other law, 109/13- CC , 55/14 and 139/14)

Ministry of Justice

Ministry of Economy

Chamber of Enforcement Officers Judicial Academy

2015

Appointed 75% of the total number of enforcement officers envisaged by the Law on Enforcement and Security

Continued and enhanced the training of enforcement officers - more than 75% of the newly appointed bailiffs trained

Ministry of Justice hired an adequate number of employees (2-3) to supervise the work of the enforcement officers;

Ministry of Justice issued a monitoring plan based on risk assessment.


А2Continue and enhance trainings of judges and court staff in the implementation of the Law on Enforcement and Security

Judicial Academy 2015 More than 25% of judges and court staff passed the training by the end of 2015.


Measure М2 –Reform of regulations governing the area of real estate lien М2 –Reform of regulations governing the area of real estate lien


А1 The reform of the regulations the Law on Pledge on movables

Ministry of Justice

Ministry of Economy

SBRA

2015

Introduced obligation to register all pledges on movables (both possessory and non-possessory pledge);

Improved delivery process, changed the legal framework, so as to prevent debtors to avoid execution by avoiding receipt, detailed regulated process of extrajudicial settlement of claims which is provided by a lien registered in the Register of pledges on movable property and rights, detailed regulated lien on claims and methods of settlement of claims

Organized at least 2 (two) promotional events during the year, in order to promote greater use of pledge as collateral.


А2

Prepare materials and guidelines for employees of the competent authorities on the subject of the Law on Mortgage ("Official Gazette of the Republic of Serbia", No. 115/05) in order to reduce inconsistencies in the conduct of the competent authorities (court, cadastre, tax administration)

Ministry of Finance

Ministry of Economy


Association of Serbian Banks (hereinafter ASB)

2016

Developed and distributed materials and guidelines for the training of employees of the competent authorities on the subject of the Law on Mortgage

Over 80% of relevant officials familiar with the content of the material

N/A

А3

Prepare and implement specialized training of employees of the competent authorities (internal affairs bodies, prosecution, courts, etc.) with respect to the application of criminal law to prevent abuses, frauds and illegal disposal of collateral

Judicial Academy

Ministry of Interior2016

Prepared materials and conducted training of the relevant staff in the relevant departments (four trainings in total), in cases of premature disposal of pledge assets

Materials available to all employees of the competent authorities

N/A

| 77

Pillar 2

PILLAR-2 OVERALL OBJECTIVE – IMPROVMENT ACCESS TO SOURCES OF FUNDING

2.1 DIMENSION SPECIFIC OBJECTIVE NAME IMPROVMENT THE QUALITY OF THE BANKING SECTOR OFFER FOR SMES

Measure М1 -Improvment enforcement procedure М1 -Improvment enforcement procedure


А1

Support to a more efficient implementation of the Law on Enforcement and Security ("Official Gazette of the Republic of Serbia", No. 31/11, 99/11 other law, 109/13- CC , 55/14 and 139/14)

Ministry of Justice

Ministry of Economy

Chamber of Enforcement Officers Judicial Academy

2015

Appointed 75% of the total number of enforcement officers envisaged by the Law on Enforcement and Security

Continued and enhanced the training of enforcement officers - more than 75% of the newly appointed bailiffs trained

Ministry of Justice hired an adequate number of employees (2-3) to supervise the work of the enforcement officers;

Ministry of Justice issued a monitoring plan based on risk assessment.


А2Continue and enhance trainings of judges and court staff in the implementation of the Law on Enforcement and Security

Judicial Academy 2015 More than 25% of judges and court staff passed the training by the end of 2015.




А1 The reform of the regulations the Law on Pledge on movables

Ministry of Justice

Ministry of Economy

SBRA

2015

Introduced obligation to register all pledges on movables (both possessory and non-possessory pledge);

Improved delivery process, changed the legal framework, so as to prevent debtors to avoid execution by avoiding receipt, detailed regulated process of extrajudicial settlement of claims which is provided by a lien registered in the Register of pledges on movable property and rights, detailed regulated lien on claims and methods of settlement of claims

Organized at least 2 (two) promotional events during the year, in order to promote greater use of pledge as collateral.


А2

Prepare materials and guidelines for employees of the competent authorities on the subject of the Law on Mortgage ("Official Gazette of the Republic of Serbia", No. 115/05) in order to reduce inconsistencies in the conduct of the competent authorities (court, cadastre, tax administration)

Ministry of Finance

Ministry of Economy


Association of Serbian Banks (hereinafter ASB)

2016

Developed and distributed materials and guidelines for the training of employees of the competent authorities on the subject of the Law on Mortgage

Over 80% of relevant officials familiar with the content of the material

N/A

А3

Prepare and implement specialized training of employees of the competent authorities (internal affairs bodies, prosecution, courts, etc.) with respect to the application of criminal law to prevent abuses, frauds and illegal disposal of collateral

Judicial Academy

Ministry of Interior2016

Prepared materials and conducted training of the relevant staff in the relevant departments (four trainings in total), in cases of premature disposal of pledge assets

Materials available to all employees of the competent authorities

N/A

78 |

ACTION PLAN

Measure М3 -Develop incentive measures and mechanisms in order for the banking sector to increase crediting of SMEs

М3 -Develop incentive measures and mechanisms in order for the banking sector to increase crediting of SMEs


А1Implementation of programs to support small businesses in procurement of equipment in cooperation with banks

Ministry of Economy

Ministry of Finance

CCIS

ASB

Business associations

2015 Prepared and implemented programme

01 Income from budget

Section 20

Chapter 20.0

Program 1504

Function 410

Project 4004

Economic classification 451: RSD 200 million

А2Establishing a dialogue between the public and private sectors on increasing the volume of crediting SMEs

Ministry of Economy

Ministry of Finance

CCIS

National Bank of Serbia

ASB


2015 Organized 4 round tables


CCIS Budget

Measure М4–Empowering specialized professions in order to obtain credible financial information in the loan approval process

М4–Empowering specialized professions in order to obtain credible financial information in the loan approval process


А1Creating a legal and institutional framework for the establishment of the profession of real estate assessors

Ministry of Finance


ASB

National Association of Valuers of Serbia

2015

Developed and adopted national standards for evaluation of real estate

Made a new framework for licensing of assessors in accordance with the standards of the EU


А2Establish a national database of transaction data related to real estate and make this information available to qualified assessors


Serbian Chamber of Notaries


2015

Created a legal and institutional framework for centralized collection of information

Developed and established a system for collection and distribution of information


А3 Promote importance and improve financial reporting of SMEs through capacity building

Ministry of Finance

Ministry of Economy

2015

2016

Promotion material prepared, a minimum of two public events held and conducted a public campaign to promote the importance of financial reporting

Held a minimum of two training for application of international standards for financial reporting (hereinafter: ISFR) for SMEs

Held a minimum of two training for ISFR for medium-sized companies that have decided to use ISFR

Project financed by SECO and co-ordinated by the World bank

Measure М5–Improvment monitoring of the situation with financing of SMEs М5–Improvment monitoring of the situation with financing of SMEs


А1 Improve the collection and publication of information on SME financing

Ministry of Economy

CCIS


NARD

2015

Prepared a methodology for monitoring the financing of SMEs

Published the report with information on financing of SMEs, such as funding sources, trends, methods, cost of capital, problems with financing, started procedures of consensual financial restructuring etc. (as a part of the annual report on SMEs)

National budget –allocation for regular operation with the support of USAID BEP - Business Enabling Project;

CCIS budget

| 79

Pillar 2

Measure М3 -Develop incentive measures and mechanisms in order for the banking sector to increase crediting of SMEs

М3 -Develop incentive measures and mechanisms in order for the banking sector to increase crediting of SMEs


А1Implementation of programs to support small businesses in procurement of equipment in cooperation with banks

Ministry of Economy

Ministry of Finance

CCIS

ASB


2015 Prepared and implemented programme

01 Income from budget

Section 20

Chapter 20.0

Program 1504

Function 410

Project 4004

Economic classification 451: RSD 200 million

А2Establishing a dialogue between the public and private sectors on increasing the volume of crediting SMEs

Ministry of Economy

Ministry of Finance

CCIS


ASB


2015 Organized 4 round tables


CCIS Budget

Measure М4–Empowering specialized professions in order to obtain credible financial information in the loan approval process

М4–Empowering specialized professions in order to obtain credible financial information in the loan approval process


А1Creating a legal and institutional framework for the establishment of the profession of real estate assessors

Ministry of Finance


ASB

National Association of Valuers of Serbia

2015

Developed and adopted national standards for evaluation of real estate

Made a new framework for licensing of assessors in accordance with the standards of the EU


А2Establish a national database of transaction data related to real estate and make this information available to qualified assessors


Serbian Chamber of Notaries


2015

Created a legal and institutional framework for centralized collection of information

Developed and established a system for collection and distribution of information


А3 Promote importance and improve financial reporting of SMEs through capacity building

Ministry of Finance

Ministry of Economy

2015

2016

Promotion material prepared, a minimum of two public events held and conducted a public campaign to promote the importance of financial reporting

Held a minimum of two training for application of international standards for financial reporting (hereinafter: ISFR) for SMEs

Held a minimum of two training for ISFR for medium-sized companies that have decided to use ISFR

Project financed by SECO and co-ordinated by the World bank

Measure М5–Improvment monitoring of the situation with financing of SMEs М5–Improvment monitoring of the situation with financing of SMEs


А1 Improve the collection and publication of information on SME financing

Ministry of Economy

CCIS


NARD

2015

Prepared a methodology for monitoring the financing of SMEs

Published the report with information on financing of SMEs, such as funding sources, trends, methods, cost of capital, problems with financing, started procedures of consensual financial restructuring etc. (as a part of the annual report on SMEs)

National budget –allocation for regular operation with the support of USAID BEP - Business Enabling Project;

CCIS budget

80 |

ACTION PLAN

А2Ensure regular monitoring of bank loans to SMEs and continue to collect data for Serbia within the OECD ScoreBoard


ASB2015

Changed the legal obligation of banks to report to the National Bank of Serbia so as to include the information on loans to SMEs

NBS/ASBis able to collect information on loans to SMEs

Published data for Serbia in the annual OECD ScoreBoard


2.2 DIMENSION SPECIFIC OBJECTIVE NAME THE DEVELOPMENT OF NEW FINANCIAL INSTRUMENTS

Measure М1 –The development of new models of financing SMEEs М1 –The development of new models of financing SMEEs


А1Conduct a needs analysis to establish alternative financial instruments with an Investment Strategy proposal

Ministry of Economy in cooperation with the European Investment Bank

2015

2016

Performed a market assessment of financial instruments and investment needs assessment for the 2014-2020 program period

Proposed an investment strategy so that the offered financial products offered suit the needs of the market

Promoted analysis results

05 Donations from foreign countries - IPA 2014 Development of preparatory studies for the establishment of financial instruments for SMEs in Serbia (EUR 150.000)

Measure М2 - Improvment the system of issuing credit guarantees М2 - Improvment the system of issuing credit guarantees


А1Develop a program of financial instruments for securing loans to SMEs financed by bank credit lines

Ministry of Economy 2016 Prepared a program concept N/A

Measure М3 – Creating conditions for entrepreneurship capital investment, investment in equity, mezzanine financing and investment of business angels in small and medium enterprises

М3 – Creating conditions for entrepreneurship capital investment, investment in equity, mezzanine financing and investment of business angels in small and medium enterprises


А1Established the legal framework governing the establishment and operation of entrepreneurship capital funds in the Republic of Serbia

Ministry of Finance

Ministry of Economy


Serbian Export Credit and Insurance Agency

ASB

2015

2016

2015:

Prepared overview of the necessary amendments to the relevant regulations (relating to banks, insurance companies, tax treatment)

Prepared the legislative framework

2016:

Adopted the legislative framework


А2

Preparation of the concept of establishing an entrepreneurship capital public fund (entrepreneurship capital fund in which the state is the majority owner);

Ministry of Economy


2016 Prepared a concept of establishing a public fund N/A

А3 Create a mechanism for regular collection of proposals for potential projects for this type of investment

NARD

Ministry of Economy

Innovation Fund

2016Established a project database

Established a system of electronic registration of projects of interested entrepreneurs to the created base

N/A

А4

Implementation of continuous activities of developing mechanisms of the capital market, in order to provide alternative methods of easier access to financing and capital

Ministry of Finance

Ministry of Economy

2015

2016

Synchronized amendments to the Companies Law, Capital Market Law (“Official Gazette of the Republic of Serbia”, No. 31/11) and the Law on Takeovers (“Official Gazette of the Republic of Serbia”, No. 46/06, 107/09 and 99/11), in order to facilitate the development of capital markets for access to alternative sources of funding


| 81

Pillar 2

А2Ensure regular monitoring of bank loans to SMEs and continue to collect data for Serbia within the OECD ScoreBoard


ASB2015

Changed the legal obligation of banks to report to the National Bank of Serbia so as to include the information on loans to SMEs

NBS/ASBis able to collect information on loans to SMEs

Published data for Serbia in the annual OECD ScoreBoard


2.2 DIMENSION SPECIFIC OBJECTIVE NAME THE DEVELOPMENT OF NEW FINANCIAL INSTRUMENTS

Measure М1 –The development of new models of financing SMEEs М1 –The development of new models of financing SMEEs


А1Conduct a needs analysis to establish alternative financial instruments with an Investment Strategy proposal

Ministry of Economy in cooperation with the European Investment Bank

2015

2016

Performed a market assessment of financial instruments and investment needs assessment for the 2014-2020 program period

Proposed an investment strategy so that the offered financial products offered suit the needs of the market

Promoted analysis results

05 Donations from foreign countries - IPA 2014 Development of preparatory studies for the establishment of financial instruments for SMEs in Serbia (EUR 150.000)



А1Develop a program of financial instruments for securing loans to SMEs financed by bank credit lines

Ministry of Economy 2016 Prepared a program concept N/A

Measure М3 – Creating conditions for entrepreneurship capital investment, investment in equity, mezzanine financing and investment of business angels in small and medium enterprises

М3 – Creating conditions for entrepreneurship capital investment, investment in equity, mezzanine financing and investment of business angels in small and medium enterprises


А1Established the legal framework governing the establishment and operation of entrepreneurship capital funds in the Republic of Serbia

Ministry of Finance

Ministry of Economy



ASB

2015

2016

2015:

Prepared overview of the necessary amendments to the relevant regulations (relating to banks, insurance companies, tax treatment)

Prepared the legislative framework

2016:

Adopted the legislative framework


А2

Preparation of the concept of establishing an entrepreneurship capital public fund (entrepreneurship capital fund in which the state is the majority owner);

Ministry of Economy


2016 Prepared a concept of establishing a public fund N/A

А3 Create a mechanism for regular collection of proposals for potential projects for this type of investment

NARD

Ministry of Economy

Innovation Fund

2016Established a project database

Established a system of electronic registration of projects of interested entrepreneurs to the created base

N/A

А4

Implementation of continuous activities of developing mechanisms of the capital market, in order to provide alternative methods of easier access to financing and capital

Ministry of Finance

Ministry of Economy

2015

2016

Synchronized amendments to the Companies Law, Capital Market Law (“Official Gazette of the Republic of Serbia”, No. 31/11) and the Law on Takeovers (“Official Gazette of the Republic of Serbia”, No. 46/06, 107/09 and 99/11), in order to facilitate the development of capital markets for access to alternative sources of funding


82 |

ACTION PLAN

Measure М4 - Eliminating administrative obstacles and improving the regulatory environment for the establishment of micro-financial support

М4 - Eliminating administrative obstacles and improving the regulatory environment for the establishment of micro-financial support


А1Establish a unified legal framework for non-bank, non-deposit credit institutions, which includes the process of licensing and supervision

Ministry of Finance


2015

2016

Performed the analysis of the alternatives of establishing a unified legal and institutional framework

Built institutional capacity for the process of licensing and oversight within the competent organ(s)

Adopted law that governs this matter

Implemented information campaign of the Ministry of Economy, which promoted the new legal framework and its advantages - a minimum of 4 events per year


Measure М5 - Improve the conditions for the use of leasing and factoring by SMEs М5 - Improve the conditions for the use of leasing and factoring by SMEs


А1 An increase of the volume of leasing usage by SMEs

Ministry of Finance


Association of Leasing Companies in Serbia


NARD

2015

Performed the analysis of legal and other obstacles to an increased use of leasing by SMEs

Written recommendations for amending regulations and removal of obstacles with concrete solutions proposed

Adopted and implemented at least 50% of recommendations

Prepared and conducted the campaign on the use of leasing for investment in fixed assets

More than 50% of the surveyed SMEs aware of the possibility of using the leasing for investment in fixed assets

More than 5% of SMEs use leasing for investment in fixed assets 3 years after the adoption and implementation of the recommendations


2.3 DIMENSION SPECIFIC OBJECTIVE NAME IMPROVMENT THE ABILITY OF SMES TO ACCESS VARIOUS SOURCES OF FUNDING

Measure М1 -Improvment the process of informing SMEEs on available sources of funding М1 -Improvment the process of informing SMEEs on available sources of funding


А1 Establishing an economy portal on available sources of funding

CCIS

Ministry of Economy

NARD with regional development agencies

2015

2016

Established the CCIS economy portal as a national portal with an overview of all available public, private and EU sources of financing for SMEs

Updated information on the website of the NARD entrepreneurial portal and CCIS economy portal.

CCIS budget


А2 Establishing a system of regular submission of information for updating the portal

CCIS

Ministry of Economy

2015

2016

Established a system of regular submission of information to the Serbian Chamber of Commerce by the public, private and EU funding sources in order to regularly update the CCIS economy portal

Conducted a national campaign to inform SMEs about the CCIS economy portal

CCIS budget


| 83

Pillar 2




А1Establish a unified legal framework for non-bank, non-deposit credit institutions, which includes the process of licensing and supervision

Ministry of Finance


2015

2016

Performed the analysis of the alternatives of establishing a unified legal and institutional framework

Built institutional capacity for the process of licensing and oversight within the competent organ(s)

Adopted law that governs this matter

Implemented information campaign of the Ministry of Economy, which promoted the new legal framework and its advantages - a minimum of 4 events per year


Measure М5 - Improve the conditions for the use of leasing and factoring by SMEs М5 - Improve the conditions for the use of leasing and factoring by SMEs


А1 An increase of the volume of leasing usage by SMEs

Ministry of Finance


Association of Leasing Companies in Serbia


NARD

2015

Performed the analysis of legal and other obstacles to an increased use of leasing by SMEs

Written recommendations for amending regulations and removal of obstacles with concrete solutions proposed

Adopted and implemented at least 50% of recommendations

Prepared and conducted the campaign on the use of leasing for investment in fixed assets

More than 50% of the surveyed SMEs aware of the possibility of using the leasing for investment in fixed assets

More than 5% of SMEs use leasing for investment in fixed assets 3 years after the adoption and implementation of the recommendations


2.3 DIMENSION SPECIFIC OBJECTIVE NAME IMPROVMENT THE ABILITY OF SMES TO ACCESS VARIOUS SOURCES OF FUNDING

Measure М1 -Improvment the process of informing SMEEs on available sources of funding М1 -Improvment the process of informing SMEEs on available sources of funding


А1 Establishing an economy portal on available sources of funding

CCIS

Ministry of Economy

NARD with regional development agencies

2015

2016

Established the CCIS economy portal as a national portal with an overview of all available public, private and EU sources of financing for SMEs

Updated information on the website of the NARD entrepreneurial portal and CCIS economy portal.

CCIS budget


А2 Establishing a system of regular submission of information for updating the portal

CCIS

Ministry of Economy

2015

2016

Established a system of regular submission of information to the Serbian Chamber of Commerce by the public, private and EU funding sources in order to regularly update the CCIS economy portal

Conducted a national campaign to inform SMEs about the CCIS economy portal

CCIS budget


84 |

ACTION PLAN

Measure М2 -Improvment the knowledge and skills of representatives of SMEEs in the area of financing М2 -Improvment the knowledge and skills of representatives of SMEEs in the area of financing


А1Improve the tools and training materials for training of SMEs in the field of financing, which SMEs can easily use individually

Ministry of EconomyCCISBusiness associationsRegional development agenciesNational Bank of SerbiaASBNARD

2015

Improved the tools and training materialsThe tools and materials distributed via CCIS, regional chambers of commerce and regional development agencies are placed on the CCIS economy portal and “the entrepreneurial portal”Completed at least 30 trainings in the use of tools and materials for financing SMEs, with a particular focus on beginners, young people, women and members of vulnerable groupsDistributed tools and training materials25% of surveyed SMEs are aware of the existence and availability of tools and materials

National budget –allocation for regular operation with the support of USAID BEP - Business Enabling Project;CCIS budget

А2

Support for the involvement of local or foreign consultants for business advice, support and implementation of good practice in financing companies

Ministry of EconomyCCISNARD

2016

Implemented training, mentoring and advisory services renderedEstablished base of consultants for SMEs within the CCISAt least 20% of the surveyed SMEs are familiar with the programs and the criteria for participation in them

N/A

А3 Improved management of collaterals by the SMEs

CCISBusiness AssociationsNational Bank of SerbiaASBNARD

2015

Prepared a training plan and education materials for businessmen on the efficient management of collaterals for the sake of increasing the chances of obtaining a loanThe materials on the management of collaterals placed on the CCIS economy portalTraining for SMEs to effectively manage collateralsAt least 25% of the surveyed SMEs are aware of the existence and availability of materials on the efficient management of collaterals

CCIS Budgetwith the support of USAID BEP - Business Enabling Project

Measure М3 - Raising awareness among entrepreneurs and other interested parties about the availability and characteristics of non-banking financial instruments

М3 - Raising awareness among entrepreneurs and other interested parties about the availability and characteristics of non-banking financial instruments


А1Develop tools and implement training programs for "investment readiness"3 and learn about the way of financing through entrepreneurial capital

Ministry of EconomyNARDRegional DevelopmentCCISPrivate sector

20152016

Prepared tools and training programsRealized the training - at least four trainings per year

201501 Income from budgetSection 20Chapter 20.0Program 1504Function 410 Project 4006Economic classification 424 Specialized servicesProgram of the standardized set of services for SMEEs in 2015: RSD 37.5 million;CCIS budget

А2

Informing entrepreneurs about the availability and characteristics of other non-banking financial instruments and the funding available through EU programs

Ministry of EconomyCCISNARDSME associationsAssociations of investors

20152016

Established an inventory of services offered by various organizationsEstablished the base of the offers of subsidized “alternative” (non-banking) financial instruments (the state, the EU, etc.)Held Workshops - at least four workshops per yearUpdated information on the NARD entrepreneurial portal and CCIS economy portalEstablished the electronic training models on NARD entrepreneurial portal and CCIS economy portal


А3

Promote and encourage greater use of financial instruments for securing loans for SMEs available through the programs of the EU (COSME, EDIF and HORIZON 2020)

Ministry of EconomyCCISMembers of the governing boards of banks in which the state participatesASB

20152016

Prepare a draft program of activities for informing banksWorkshops and meetings held with the aim of informing banks - at least two workshops or meetings per yearAt least three banks use the available EU programs

National budget –allocation for regular operationCCIS budget

3 The investment readiness represents mastering the skill of communication with potential investors, as well as the ability to create business plans for companies so as to secure external funding.

| 85

Pillar 2

Measure М2 -Improvment the knowledge and skills of representatives of SMEEs in the area of financing М2 -Improvment the knowledge and skills of representatives of SMEEs in the area of financing


А1Improve the tools and training materials for training of SMEs in the field of financing, which SMEs can easily use individually

Ministry of EconomyCCISBusiness associationsRegional development agenciesNational Bank of SerbiaASBNARD

2015

Improved the tools and training materialsThe tools and materials distributed via CCIS, regional chambers of commerce and regional development agencies are placed on the CCIS economy portal and “the entrepreneurial portal”Completed at least 30 trainings in the use of tools and materials for financing SMEs, with a particular focus on beginners, young people, women and members of vulnerable groupsDistributed tools and training materials25% of surveyed SMEs are aware of the existence and availability of tools and materials


А2

Support for the involvement of local or foreign consultants for business advice, support and implementation of good practice in financing companies

Ministry of EconomyCCISNARD

2016

Implemented training, mentoring and advisory services renderedEstablished base of consultants for SMEs within the CCISAt least 20% of the surveyed SMEs are familiar with the programs and the criteria for participation in them

N/A

А3 Improved management of collaterals by the SMEs

CCISBusiness AssociationsNational Bank of SerbiaASBNARD

2015

Prepared a training plan and education materials for businessmen on the efficient management of collaterals for the sake of increasing the chances of obtaining a loanThe materials on the management of collaterals placed on the CCIS economy portalTraining for SMEs to effectively manage collateralsAt least 25% of the surveyed SMEs are aware of the existence and availability of materials on the efficient management of collaterals

CCIS Budgetwith the support of USAID BEP - Business Enabling Project

Measure М3 - Raising awareness among entrepreneurs and other interested parties about the availability and characteristics of non-banking financial instruments

М3 - Raising awareness among entrepreneurs and other interested parties about the availability and characteristics of non-banking financial instruments


А1Develop tools and implement training programs for "investment readiness"3 and learn about the way of financing through entrepreneurial capital

Ministry of EconomyNARDRegional DevelopmentCCISPrivate sector

20152016

Prepared tools and training programsRealized the training - at least four trainings per year

201501 Income from budgetSection 20Chapter 20.0Program 1504Function 410 Project 4006Economic classification 424 Specialized servicesProgram of the standardized set of services for SMEEs in 2015: RSD 37.5 million;CCIS budget

А2

Informing entrepreneurs about the availability and characteristics of other non-banking financial instruments and the funding available through EU programs

Ministry of EconomyCCISNARDSME associationsAssociations of investors

20152016

Established an inventory of services offered by various organizationsEstablished the base of the offers of subsidized “alternative” (non-banking) financial instruments (the state, the EU, etc.)Held Workshops - at least four workshops per yearUpdated information on the NARD entrepreneurial portal and CCIS economy portalEstablished the electronic training models on NARD entrepreneurial portal and CCIS economy portal


А3

Promote and encourage greater use of financial instruments for securing loans for SMEs available through the programs of the EU (COSME, EDIF and HORIZON 2020)

Ministry of EconomyCCISMembers of the governing boards of banks in which the state participatesASB

20152016

Prepare a draft program of activities for informing banksWorkshops and meetings held with the aim of informing banks - at least two workshops or meetings per yearAt least three banks use the available EU programs


86 |

ACTION PLAN

PILLAR-3 OVERALL OBJECTIVE – CONTINUOUS DEVELOPMENT OF HUMAN RESOURCES

3.1 DIMENSION SPECIFIC OBJECTIVE NAME IMPROVMENT THE QUALITY OF THE WORKFORCE

Measure М1 - Development of mechanisms for regular monitoring and forecasting needs of SMEs for labor М1 - Development of mechanisms for regular monitoring and forecasting needs of SMEs for labor


А1

Development and application of mechanisms for predicting and monitoring the needs of the economy on an annual basis (local, regional and national level)


National Employment Service

Ministry of Education, Science and Technological Development

Ministry of Economy

2015

2016

Upgraded methodology for regular monitoring of the needs of the economy on an annual basis

Regularly conducting surveys annually


Measure М2 - Harmonization of the formal education system and the labor market М2 - Harmonization of the formal education system and the labor market


А1

Proposal for harmonizing the network of vocational schools and educational programs (profiles) and study programs offers with the needs of the economy


Institute for the Advancement of Education

Ministry of Economy

CCIS


2015Prepared methodology for harmonizing the network of vocational schools and educational programs (profiles) and study programs offers with the needs of the economy


А2

Proposal for inclusion of practical work in the teaching process, according to the principle of dual education system, for young people to enter the labor market with applicable knowledge

Development and implementation of different models of practical training in order to ensure better preparedness of the individual to the requirements of the labor market



Ministry of Economy

CCIS

2015

2016

Made a proposal of the methodological and legislative framework for the implementation of models of cooperative education in apprenticeship training

National budget –allocation for regular operation with support from GIZ

CCIS budget

А3

Improving systems of involvement of employers in the process of programming, development and implementation of programs of secondary vocational and higher education



Ministry of Economy

CCIS

2015

2016

At least 10% representation of employers included in the work of sector councils, board of examiners as well as in the realization of practical teaching and student practice

Developed a system of accreditation and certification of employers at which practical teaching and student practice are performed

Passed laws and sub-legal regulations for financial incentives to employers whose business companies conduct practical classes

Special funds for this purpose are not set forth in the budget of the Ministry of Education, Science and Technological Development for 2015

CCIS budget

А4

Harmonization of enrolment policy for higher studies with the priorities in the economy and reforming the system of financing higher education in line with the implementation of this policy


Ministry of Economy

2015

2016

Set quotas for admission to colleges in accordance with the priorities of the economy

The introduction of regular monitoring of indicators such as the level of employment in the year after graduation and others


| 87

Pillar 3

PILLAR-3 OVERALL OBJECTIVE – CONTINUOUS DEVELOPMENT OF HUMAN RESOURCES

3.1 DIMENSION SPECIFIC OBJECTIVE NAME IMPROVMENT THE QUALITY OF THE WORKFORCE

Measure М1 - Development of mechanisms for regular monitoring and forecasting needs of SMEs for labor М1 - Development of mechanisms for regular monitoring and forecasting needs of SMEs for labor


А1

Development and application of mechanisms for predicting and monitoring the needs of the economy on an annual basis (local, regional and national level)




Ministry of Economy

2015

2016

Upgraded methodology for regular monitoring of the needs of the economy on an annual basis

Regularly conducting surveys annually


Measure М2 - Harmonization of the formal education system and the labor market М2 - Harmonization of the formal education system and the labor market


А1

Proposal for harmonizing the network of vocational schools and educational programs (profiles) and study programs offers with the needs of the economy



Ministry of Economy

CCIS


2015Prepared methodology for harmonizing the network of vocational schools and educational programs (profiles) and study programs offers with the needs of the economy


А2

Proposal for inclusion of practical work in the teaching process, according to the principle of dual education system, for young people to enter the labor market with applicable knowledge

Development and implementation of different models of practical training in order to ensure better preparedness of the individual to the requirements of the labor market



Ministry of Economy

CCIS

2015

2016

Made a proposal of the methodological and legislative framework for the implementation of models of cooperative education in apprenticeship training

National budget –allocation for regular operation with support from GIZ

CCIS budget

А3

Improving systems of involvement of employers in the process of programming, development and implementation of programs of secondary vocational and higher education



Ministry of Economy

CCIS

2015

2016

At least 10% representation of employers included in the work of sector councils, board of examiners as well as in the realization of practical teaching and student practice

Developed a system of accreditation and certification of employers at which practical teaching and student practice are performed

Passed laws and sub-legal regulations for financial incentives to employers whose business companies conduct practical classes

Special funds for this purpose are not set forth in the budget of the Ministry of Education, Science and Technological Development for 2015

CCIS budget

А4

Harmonization of enrolment policy for higher studies with the priorities in the economy and reforming the system of financing higher education in line with the implementation of this policy


Ministry of Economy

2015

2016

Set quotas for admission to colleges in accordance with the priorities of the economy

The introduction of regular monitoring of indicators such as the level of employment in the year after graduation and others


88 |

ACTION PLAN

Measure М3 - The development of the system of informal education for the advancement of knowledge and skills М3 - The development of the system of informal education for the advancement of knowledge and skills


А1 Development of a system of accreditation of short trainings



2015

Established a functional system of accreditation of short trainings, in accordance with the Law on Adult Education (“Official Gazette of the Republic of Serbia”, No. 55/13)

Number of accredited standardized programs of short training (5 training programs)

Number of accredited educational institutions (5 institutions)


А2Continued implementation of the program of short trainings intended for the labor market and training at the request of the employer



2015

Number and type of conducted trainings (about 55 short trainings intended for the labor market and training at the request of the employer)

The number of persons involved in training (at least 1,500 students)


А3Continuing with additional training and retraining of the unemployed in order to increase employment opportunities


Secondary vocational schools


2015

The number of persons involved in additional training and retraining programs (about 860 persons) that the National Employment Service sends to complete additional training and retraining, and these activities are implemented in secondary vocational schools


А4 Establishing a system for the recognition of non-formal learning and experiential knowledge


Ministry of Economy

2015Prepared a proposal of the act regulating the informal learning and experiential knowledge, in accordance with the Law on Education of adults.


3.2 DIMENSION SPECIFIC OBJECTIVE NAME SUPPORT TO DEVELOPMENT OF EDUCATION FOR ENTREPRENEURSHIP

Measure М1 - The introduction of entrepreneurship education at all levels of the educational system of the Republic of Serbia

М1 - The introduction of entrepreneurship education at all levels of the educational system of the Republic of Serbia


А1The introduction of entrepreneurship as a separate course content at faculties, primarily technical faculties


Ministry of Economy

2015

2016Number of study programs at technical colleges in which an entrepreneurship course is taught


А2Continuing with the introduction of entrepreneurship as a separate subject in secondary vocational schools



Ministry of Economy

Association “Junior Achievement Serbia”

2015

Number of students in secondary vocational schools, which attend entrepreneurship as a subject

Number of curricula in secondary vocational schools which include an entrepreneurship course

The number of secondary schools in which entrepreneurship as an extracurricular activity is implemented in the form of a special section

National budget –allocation for regular operation with the support of the association “Junior Achievement Serbia”

| 89

Pillar 3

Measure М3 - The development of the system of informal education for the advancement of knowledge and skills М3 - The development of the system of informal education for the advancement of knowledge and skills


А1 Development of a system of accreditation of short trainings



2015

Established a functional system of accreditation of short trainings, in accordance with the Law on Adult Education (“Official Gazette of the Republic of Serbia”, No. 55/13)

Number of accredited standardized programs of short training (5 training programs)

Number of accredited educational institutions (5 institutions)


А2Continued implementation of the program of short trainings intended for the labor market and training at the request of the employer



2015

Number and type of conducted trainings (about 55 short trainings intended for the labor market and training at the request of the employer)

The number of persons involved in training (at least 1,500 students)


А3Continuing with additional training and retraining of the unemployed in order to increase employment opportunities


Secondary vocational schools


2015

The number of persons involved in additional training and retraining programs (about 860 persons) that the National Employment Service sends to complete additional training and retraining, and these activities are implemented in secondary vocational schools


А4 Establishing a system for the recognition of non-formal learning and experiential knowledge


Ministry of Economy

2015Prepared a proposal of the act regulating the informal learning and experiential knowledge, in accordance with the Law on Education of adults.


3.2 DIMENSION SPECIFIC OBJECTIVE NAME SUPPORT TO DEVELOPMENT OF EDUCATION FOR ENTREPRENEURSHIP

Measure М1 - The introduction of entrepreneurship education at all levels of the educational system of the Republic of Serbia

М1 - The introduction of entrepreneurship education at all levels of the educational system of the Republic of Serbia


А1The introduction of entrepreneurship as a separate course content at faculties, primarily technical faculties


Ministry of Economy

2015

2016Number of study programs at technical colleges in which an entrepreneurship course is taught


А2Continuing with the introduction of entrepreneurship as a separate subject in secondary vocational schools



Ministry of Economy

Association “Junior Achievement Serbia”

2015

Number of students in secondary vocational schools, which attend entrepreneurship as a subject

Number of curricula in secondary vocational schools which include an entrepreneurship course

The number of secondary schools in which entrepreneurship as an extracurricular activity is implemented in the form of a special section

National budget –allocation for regular operation with the support of the association “Junior Achievement Serbia”

90 |

ACTION PLAN

А3The introduction of content that develops entrepreneurial spirit among children in primary schools through existing subjects

Ministry of Education, Science and Technological DevelopmentInstitute for the Advancement of EducationMinistry of EconomyThe “Junior Achievement Serbia” associationSouth East European Centre for Entrepreneurial Learning- regional initiative, EU project

20152016

Number of primary schools who have introduced facilities that develop entrepreneurial spirit in children Prepared act proposal regulating the introduction of entrepreneurship (plan, program, type of teacher education)

National budget –allocation for regular operation with the support of: South East European Centre for Entrepreneurial Learning and the “Junior Achievement Serbia” association

А4

Development of the concept of student company as a methodology for the development of entrepreneurial thinking and encouraging entrepreneurial activities among young people in secondary schools

Ministry of Education, Science and Technological DevelopmentInstitute for the Advancement of EducationMinistry of EconomyThe “Junior Achievement Serbia” association

20152016 Developed a concept of student company that can be applied in the

existing education and fiscal environment in Serbia

National budget –allocation for regular operation with the support of the “Junior Achievement Serbia” association and other organizations which, in cooperation with secondary schools, implement activities in the field of entrepreneurial learning

А5Continued implementation of the program of support for entrepreneurship education after the national model "Junior Achievement"

Ministry of EconomyThe “Junior Achievement Serbia” associationMinistry of Education, Science and Technological Development

2015 2016

The support provided for obtaining sponsorships corporate sector to continue the implementation of the programThe proposed model of long-term financing for the program, in partnership of private and public sector


Measure М2 –Education and training of the entrepreneurship teachers М2 –Education and training of the entrepreneurship teachers


А1

Developing training courses which would strengthen their competencies to encourage creativity in students, as well as innovation and enterprise



Ministry of Economy

2015

2016

At least one program to strengthen the competencies of teachers in the field of entrepreneurship within the catalogue programs of continuous professional development of teachers, educators and professionals


А2The introduction of content regarding the entrepreneurial education at faculties that educate teaching staff


Higher education institutions

Ministry of Economy

2015

2016

Identified colleges and vocational high schools interested in the proposal of introducing entrepreneurship education in their study programs

Accredited study programs where entrepreneurship is taught (at least 3)


| 91

Pillar 3

А3The introduction of content that develops entrepreneurial spirit among children in primary schools through existing subjects

Ministry of Education, Science and Technological DevelopmentInstitute for the Advancement of EducationMinistry of EconomyThe “Junior Achievement Serbia” associationSouth East European Centre for Entrepreneurial Learning- regional initiative, EU project

20152016

Number of primary schools who have introduced facilities that develop entrepreneurial spirit in children Prepared act proposal regulating the introduction of entrepreneurship (plan, program, type of teacher education)

National budget –allocation for regular operation with the support of: South East European Centre for Entrepreneurial Learning and the “Junior Achievement Serbia” association

А4

Development of the concept of student company as a methodology for the development of entrepreneurial thinking and encouraging entrepreneurial activities among young people in secondary schools

Ministry of Education, Science and Technological DevelopmentInstitute for the Advancement of EducationMinistry of EconomyThe “Junior Achievement Serbia” association

20152016 Developed a concept of student company that can be applied in the

existing education and fiscal environment in Serbia

National budget –allocation for regular operation with the support of the “Junior Achievement Serbia” association and other organizations which, in cooperation with secondary schools, implement activities in the field of entrepreneurial learning

А5Continued implementation of the program of support for entrepreneurship education after the national model "Junior Achievement"

Ministry of EconomyThe “Junior Achievement Serbia” associationMinistry of Education, Science and Technological Development

2015 2016

The support provided for obtaining sponsorships corporate sector to continue the implementation of the programThe proposed model of long-term financing for the program, in partnership of private and public sector


Measure М2 –Education and training of the entrepreneurship teachers М2 –Education and training of the entrepreneurship teachers


А1

Developing training courses which would strengthen their competencies to encourage creativity in students, as well as innovation and enterprise



Ministry of Economy

2015

2016

At least one program to strengthen the competencies of teachers in the field of entrepreneurship within the catalogue programs of continuous professional development of teachers, educators and professionals


А2The introduction of content regarding the entrepreneurial education at faculties that educate teaching staff


Higher education institutions

Ministry of Economy

2015

2016

Identified colleges and vocational high schools interested in the proposal of introducing entrepreneurship education in their study programs

Accredited study programs where entrepreneurship is taught (at least 3)


92 |

ACTION PLAN

PILLAR-4 OVERALL OBJECTIVE – ENHANCING THE SUSTAINABILITY AND COMPETITIVENESS OF SMES

4.1 DIMENSION SPECIFIC OBJECTIVE NAME IMPROVMENT THE EFFICIENCY OF THE INSTITUTIONAL SUPPORT TO BUSINESS OPERATIONS AND DEVELOPMENT OF SMES AND ENTREPRENEURSHIP

Measure М1 - Improvement and / or reform of the operating modes and the capacity of existing institutions for the organized provision of services to meet the needs of SMEs

М1 - Improvement and / or reform of the operating modes and the capacity of existing institutions for the organized provision of services to meet the needs of SMEs


А1

Analysis of work efficiency and the capacity of existing institutions for the organized provision of services and suggestion of measures for improvement and/or reform

Ministry of Economy 2015 Performed analysis and proposed measures of improvement and/or reform


А2 Service quality analysis of the institutions for the organized provision of services Ministry of Economy 2015

Survey conducted with 200 service users

Service quality analysis performedNational budget –allocation for regular operation

А3 Application of the proposed measures for improvement and/or reform Ministry of Economy 2015 Improved functioning of institutions National budget –allocation for regular

operation

Measure М2 - Monitoring the implementation of institutional support and improvement of the system of supervision over the work of institutions under the Ministry of Economy

М2 - Monitoring the implementation of institutional support and improvement of the system of supervision over the work of institutions under the Ministry of Economy


А1

Development of mechanism for continuous monitoring of quality and efficiency of the agencies and institutions under the Ministry of Economy that support SMEs

Ministry of Economy 2015 2016 Defined the mechanism and criteria for measurement of work quality National budget –allocation for regular

operation

А2 Pilot program of testing a developed mechanism Ministry of Economy2015

2016

Implemented the program of testing that included 200 businessmens

Preparation of the proposal for the optimization of the institutions


А3 Conduct an inventory and analysis of the state aid programs for SMEs in order to improve them

Ministry of Economy

Ministry of Finance

Business Associations

2015

2016

Conducted inventory and assessment of all the state aid programs for SMEs in order to analyze the effects and effectiveness of the use of funds (examine the adequacy of the concept programs, the coverage of target groups and their needs, procedures for conducting the program, compliance with the EU rules on state aid, etc.)

Based on the assessments performed, proposals were prepared for improving existing programs and functional integration of specific programs


А4Develop a proposal for the future coordination and integration of the state support for financing of SMEs

Ministry of Economy

Ministry of Finance2015

Prepared and agreed coordination mechanism

Clearly defined body responsible for coordination

Developed and established a framework for performance measurement and reporting for state programs

Trained employees who work on the preparation of measures of State aid rules

Trained employees who will apply the methodology of measuring impacts


А5 Adopt Regulation on the analysis of the impact of state aid

Ministry of Finance

Ministry of Economy

SCTM

2015

Regulation adopted which imposes obligations and define methodologies for analysis of the effects of state aid, all this for more efficient use of budgetary resources

The SCTM will present the methodology to ULS through workshops in order to be qualified to perform the analysis of the effects of the assistance provided at the local level


| 93

Pillar 4

PILLAR-4 OVERALL OBJECTIVE – ENHANCING THE SUSTAINABILITY AND COMPETITIVENESS OF SMES

4.1 DIMENSION SPECIFIC OBJECTIVE NAME IMPROVMENT THE EFFICIENCY OF THE INSTITUTIONAL SUPPORT TO BUSINESS OPERATIONS AND DEVELOPMENT OF SMES AND ENTREPRENEURSHIP

Measure М1 - Improvement and / or reform of the operating modes and the capacity of existing institutions for the organized provision of services to meet the needs of SMEs

М1 - Improvement and / or reform of the operating modes and the capacity of existing institutions for the organized provision of services to meet the needs of SMEs


А1

Analysis of work efficiency and the capacity of existing institutions for the organized provision of services and suggestion of measures for improvement and/or reform

Ministry of Economy 2015 Performed analysis and proposed measures of improvement and/or reform


А2 Service quality analysis of the institutions for the organized provision of services Ministry of Economy 2015

Survey conducted with 200 service users

Service quality analysis performedNational budget –allocation for regular operation

А3 Application of the proposed measures for improvement and/or reform Ministry of Economy 2015 Improved functioning of institutions National budget –allocation for regular

operation

Measure М2 - Monitoring the implementation of institutional support and improvement of the system of supervision over the work of institutions under the Ministry of Economy

М2 - Monitoring the implementation of institutional support and improvement of the system of supervision over the work of institutions under the Ministry of Economy


А1

Development of mechanism for continuous monitoring of quality and efficiency of the agencies and institutions under the Ministry of Economy that support SMEs

Ministry of Economy 2015 2016 Defined the mechanism and criteria for measurement of work quality National budget –allocation for regular

operation

А2 Pilot program of testing a developed mechanism Ministry of Economy2015

2016

Implemented the program of testing that included 200 businessmens

Preparation of the proposal for the optimization of the institutions


А3 Conduct an inventory and analysis of the state aid programs for SMEs in order to improve them

Ministry of Economy

Ministry of Finance

Business Associations

2015

2016

Conducted inventory and assessment of all the state aid programs for SMEs in order to analyze the effects and effectiveness of the use of funds (examine the adequacy of the concept programs, the coverage of target groups and their needs, procedures for conducting the program, compliance with the EU rules on state aid, etc.)

Based on the assessments performed, proposals were prepared for improving existing programs and functional integration of specific programs


А4Develop a proposal for the future coordination and integration of the state support for financing of SMEs

Ministry of Economy

Ministry of Finance2015

Prepared and agreed coordination mechanism

Clearly defined body responsible for coordination

Developed and established a framework for performance measurement and reporting for state programs

Trained employees who work on the preparation of measures of State aid rules

Trained employees who will apply the methodology of measuring impacts


А5 Adopt Regulation on the analysis of the impact of state aid

Ministry of Finance

Ministry of Economy

SCTM

2015

Regulation adopted which imposes obligations and define methodologies for analysis of the effects of state aid, all this for more efficient use of budgetary resources

The SCTM will present the methodology to ULS through workshops in order to be qualified to perform the analysis of the effects of the assistance provided at the local level


94 |

ACTION PLAN

Measure М3 –Further development of business services for SMEs М3 –Further development of business services for SMEs


А1 Further development of the accreditation system for the business service providers

NARD

Ministry of Economy 2015 Number of accredited providers (an increase of 5% compared to the

previous year)National budget –allocation for regular operation

А2Continued implementation of the module business services within the standardized set of services for SMEs

Ministry of Economy

NARD

АRDА – Accredited regional development agencies

2015

2016The number of users of business services (up to 5% compared to the previous year).

201501 Income from budgetSection 20Chapter 20.0Program 1504Function 410 Project 4006 Economic Classification 424 Specialized ServicesProgram of the standardized set of services for SMEEs in 2015: RSD 37,5 million

А3 Developing the capacity of the business service providers

NARD

Ministry of Economy

2015

2016Organized at least 4 trainings annually for providers of business services


А4 Continued implementation of the program of co-financing of business services SMEs

NARD

EBRD-SBS

Ministry of Economy

2015

2016At least 150 companies per year received the support

National budget –allocation for regular operation 2015-201605 Foreign countries donations - IPA 2012 Support to the development of SMEs in Serbia: RSD 417.720.000 ( EUR 3.481.000)06 International organizations donations: EBRD contribution: RSD 45.485.040 RSD (EUR 379.042), private sector*: € 1.305.000;

А5Conducting a mentoring program for entrepreneurs who are in the beginning years of their business

NARD

Ministry of Economy

2015

2016The number of entrepreneurs who are involved in a mentoring program in one year (30 entrepreneurs)


А6 Conducting a mentoring program for entrepreneurs – users of self-employment subsidy


2015



Measure М4 –Further development of trainings for potential and existing entrepreneurs М4 –Further development of trainings for potential and existing entrepreneurs


А1 Regular conducting of the analysis of the economic entities’ needs for trainings NARD

2015

2016Prepared and easily available annual report National budget –allocation for regular

operation

А2 Development of the system of accreditation of service providers NARD 2015

Prepared a proposal of a model accreditation of providers of training for SMEs for the purposes of voucher system of support to the use of business training


| 95

Pillar 4

Measure М3 –Further development of business services for SMEs М3 –Further development of business services for SMEs


А1 Further development of the accreditation system for the business service providers

NARD

Ministry of Economy 2015 Number of accredited providers (an increase of 5% compared to the

previous year)National budget –allocation for regular operation

А2Continued implementation of the module business services within the standardized set of services for SMEs

Ministry of Economy

NARD

АRDА – Accredited regional development agencies

2015

2016The number of users of business services (up to 5% compared to the previous year).

201501 Income from budgetSection 20Chapter 20.0Program 1504Function 410 Project 4006 Economic Classification 424 Specialized ServicesProgram of the standardized set of services for SMEEs in 2015: RSD 37,5 million

А3 Developing the capacity of the business service providers

NARD

Ministry of Economy

2015

2016Organized at least 4 trainings annually for providers of business services


А4 Continued implementation of the program of co-financing of business services SMEs

NARD

EBRD-SBS

Ministry of Economy

2015

2016At least 150 companies per year received the support

National budget –allocation for regular operation 2015-201605 Foreign countries donations - IPA 2012 Support to the development of SMEs in Serbia: RSD 417.720.000 ( EUR 3.481.000)06 International organizations donations: EBRD contribution: RSD 45.485.040 RSD (EUR 379.042), private sector*: € 1.305.000;

А5Conducting a mentoring program for entrepreneurs who are in the beginning years of their business

NARD

Ministry of Economy

2015



А6 Conducting a mentoring program for entrepreneurs – users of self-employment subsidy


2015



Measure М4 –Further development of trainings for potential and existing entrepreneurs М4 –Further development of trainings for potential and existing entrepreneurs


А1 Regular conducting of the analysis of the economic entities’ needs for trainings NARD

2015

2016Prepared and easily available annual report National budget –allocation for regular

operation

А2 Development of the system of accreditation of service providers NARD 2015

Prepared a proposal of a model accreditation of providers of training for SMEs for the purposes of voucher system of support to the use of business training


96 |

ACTION PLAN

А3Continued implementation and further development of training modules within programs of standardized set of services for SMEs

Ministry of EconomyNARD АRDА

20152016

Number of training modules in one year (10% increase compared to the previous year)Number of trainees (5% increase compared to the previous year)

201501 Income from budgetSection 20Chapter 20.0Program 1504Function 410Project 4006Economic classification 424 Specialized servicesProgram for the standardized set of services in 2015: RSD 37.5 million

А4

Further development of support programs through which financial support is received for trainings for young people conducted by the youth associations and associations for youth and their alliances

Ministry of Youth and SportNARDNon-governmental organizationsMinistry of Economy

20152016

Number of new programs annually (2-3)The number of young and potential entrepreneurs who have undergone trainings in one year (an increase of 10% compared to the previous year)

N/A201501 Income from budgetSection 29Function 810Economic Classification 481 Grants to non-governmental organizationsEconomic Classification 424 Specialized ServicesProgram Youth Policy in the Youth SectorRSD 160.000.000 (a portion of the funds is going to support entrepreneurship)

4.2 DIMENSION SPECIFIC OBJECTIVE NAMEOPTIMISATION AND IMPROVEMENT OF THE DEGREE OF UTILIZATION OF EXISTING INFRASTRUCTURE AND DEVELOPMENT OF THE NEW BUSINESS INFRASTRUCTURE

DEVELOPMENT OF SMES AND ENTREPRENEURSHIP

Measure М1 –Systemic regulation of business infrastructure development М1 –Systemic regulation of business infrastructure development


А1The establishment of a legal framework for defining the business infrastructure and the Cadastre of business infrastructure (CBI)

Ministry of EconomyMinistry of civil engineering, transport and infrastructureRepublic Geodetic AuthoritySerbian Business Registers AgencyNARD

2016 Established the legal framework for defining the business infrastructure and the Cadastre of business infrastructure (CBI) N/A

А2 Creating register of industrial zones in the Republic of Serbia NARD 2015 Done documenting the existing industrial zones in the Republic of

SerbiaNational budget –allocation for regular operation

А3

Creating an analysis of the current situation, needs and opportunities for further development of business infrastructure in order to develop a planning document that will determine the priorities for future investments in business infrastructure

NARDMinistry of Economy

2015 Prepared analysis with recommendations National budget –allocation for regular operation

А4 Monitoring work and assessing the effects of work of subjects of business infrastructure


2016Constructed mechanisms for monitoring the performance and assessing the effects of business infrastructurePrepared the first annual report

N/A

| 97

Pillar 4

А3Continued implementation and further development of training modules within programs of standardized set of services for SMEs

Ministry of EconomyNARD АRDА

20152016

Number of training modules in one year (10% increase compared to the previous year)Number of trainees (5% increase compared to the previous year)

201501 Income from budgetSection 20Chapter 20.0Program 1504Function 410Project 4006Economic classification 424 Specialized servicesProgram for the standardized set of services in 2015: RSD 37.5 million

А4

Further development of support programs through which financial support is received for trainings for young people conducted by the youth associations and associations for youth and their alliances

Ministry of Youth and SportNARDNon-governmental organizationsMinistry of Economy

20152016

Number of new programs annually (2-3)The number of young and potential entrepreneurs who have undergone trainings in one year (an increase of 10% compared to the previous year)

N/A201501 Income from budgetSection 29Function 810Economic Classification 481 Grants to non-governmental organizationsEconomic Classification 424 Specialized ServicesProgram Youth Policy in the Youth SectorRSD 160.000.000 (a portion of the funds is going to support entrepreneurship)

4.2 DIMENSION SPECIFIC OBJECTIVE NAMEOPTIMISATION AND IMPROVEMENT OF THE DEGREE OF UTILIZATION OF EXISTING INFRASTRUCTURE AND DEVELOPMENT OF THE NEW BUSINESS INFRASTRUCTURE

DEVELOPMENT OF SMES AND ENTREPRENEURSHIP

Measure М1 –Systemic regulation of business infrastructure development М1 –Systemic regulation of business infrastructure development


А1The establishment of a legal framework for defining the business infrastructure and the Cadastre of business infrastructure (CBI)

Ministry of EconomyMinistry of civil engineering, transport and infrastructureRepublic Geodetic AuthoritySerbian Business Registers AgencyNARD

2016 Established the legal framework for defining the business infrastructure and the Cadastre of business infrastructure (CBI) N/A

А2 Creating register of industrial zones in the Republic of Serbia NARD 2015 Done documenting the existing industrial zones in the Republic of

SerbiaNational budget –allocation for regular operation

А3

Creating an analysis of the current situation, needs and opportunities for further development of business infrastructure in order to develop a planning document that will determine the priorities for future investments in business infrastructure


2015 Prepared analysis with recommendations National budget –allocation for regular operation

А4 Monitoring work and assessing the effects of work of subjects of business infrastructure


2016Constructed mechanisms for monitoring the performance and assessing the effects of business infrastructurePrepared the first annual report

N/A

98 |

ACTION PLAN

Measure М2 - Development of business infrastructure for innovative SMEEs М2 - Development of business infrastructure for innovative SMEEs


А1Establish a legal framework to regulate the establishment, legal status and management of technological parks

Ministry of Education, Science and Technological Development Ministry of Economy

2015 Established a legal framework for the establishment and management of technological parks


А2 Putting into operation the existing scientific-technological parks and service development

Ministry of Education, Science and Technological DevelopmentMinistry of Economy

2015

Prepared business models of the operation of scientific and technological parks, which include business incubation (Belgrade, Niš, Novi Sad and Kragujevac)Appointed the management and started accepting tenants in all 4 scientific-technological parks

01 Income from budgetSection 24Program 0201Development of science and technologyFunction 140 basic researchProgram activity 0002 support to the realization of interests in Innovation Activity Economic Classification 424 specialized services 05 Foreign countries donations

А3

Promotional activities to raise awareness among youth, potential entrepreneurs about the opportunities and benefits that can be achieved through technology incubators

Ministry of Education, Science and Technological DevelopmentMinistry of EconomyNARDCenter for the Promotion of ScienceInnovation Fund

20152016

Conducted campaigns and promotional events at universities (minimum of two promotional events during the year)


А4

Developing new services, strengthening and improving the management capacity of the scientific-technological parks and technology incubators


2015 2016

Completed trainings of science-technology parks and technology incubators management(3-5 of completed trainings during the year).

201601 Income from budget (cofinancing) EUR 150.00005 Foreign country donationsIPA 2014 –Support to business incubators for improving support services for SMEEs: EUR 1.350.000

Measure М3 - Development of business infrastructure for regional and local economic development М3 - Development of business infrastructure for regional and local economic development


А1

Based on the analysis of the situation and the possibilities for the development of business incubators, prepare a "roadmap" proposal for further development of business incubation in Serbia and start its implementation

Ministry of EconomyNARDMinistry of Education, Science and Technological DevelopmentACCESS/GIZ

2015

“Roadmap” proposal prepared, for further development of business incubation in SerbiaFinished the first phase of the activities in the “roadmap”, which refers to informing and promoting the concept of business incubation.

National budget – allocation for regular operation with support from the project ACCESS/GIZ

А2Implement a program of direct financial support to existing business incubators to cover their operating costs

NARD 2015 Supported a minimum of five business incubators National budget –allocation for regular operation

А3

Analyze regional development of the Republic of Serbia and identify potential locations for the establishment of industrial parks/zones, as well as the effects and efficacy of existing industrial parks/zones

NARD Ministry of Economy

2015

Analysis made for determined potential locations for the establishment of industrial parks/zones (with the possible reduction of the current number of sites with the aim of effectively supporting the building of infrastructure on the basis of available resources)Analysis made of the effects and appropriateness of the current parks/zones (in addition to giving recommendations for further development).


| 99

Pillar 4

Measure М2 - Development of business infrastructure for innovative SMEEs М2 - Development of business infrastructure for innovative SMEEs


А1Establish a legal framework to regulate the establishment, legal status and management of technological parks

Ministry of Education, Science and Technological Development Ministry of Economy

2015 Established a legal framework for the establishment and management of technological parks


А2 Putting into operation the existing scientific-technological parks and service development


2015

Prepared business models of the operation of scientific and technological parks, which include business incubation (Belgrade, Niš, Novi Sad and Kragujevac)Appointed the management and started accepting tenants in all 4 scientific-technological parks

01 Income from budgetSection 24Program 0201Development of science and technologyFunction 140 basic researchProgram activity 0002 support to the realization of interests in Innovation Activity Economic Classification 424 specialized services 05 Foreign countries donations

А3

Promotional activities to raise awareness among youth, potential entrepreneurs about the opportunities and benefits that can be achieved through technology incubators

Ministry of Education, Science and Technological DevelopmentMinistry of EconomyNARDCenter for the Promotion of ScienceInnovation Fund

20152016

Conducted campaigns and promotional events at universities (minimum of two promotional events during the year)


А4

Developing new services, strengthening and improving the management capacity of the scientific-technological parks and technology incubators


2015 2016

Completed trainings of science-technology parks and technology incubators management(3-5 of completed trainings during the year).


Measure М3 - Development of business infrastructure for regional and local economic development М3 - Development of business infrastructure for regional and local economic development


А1

Based on the analysis of the situation and the possibilities for the development of business incubators, prepare a "roadmap" proposal for further development of business incubation in Serbia and start its implementation

Ministry of EconomyNARDMinistry of Education, Science and Technological DevelopmentACCESS/GIZ

2015

“Roadmap” proposal prepared, for further development of business incubation in SerbiaFinished the first phase of the activities in the “roadmap”, which refers to informing and promoting the concept of business incubation.

National budget – allocation for regular operation with support from the project ACCESS/GIZ

А2Implement a program of direct financial support to existing business incubators to cover their operating costs

NARD 2015 Supported a minimum of five business incubators National budget –allocation for regular operation

А3

Analyze regional development of the Republic of Serbia and identify potential locations for the establishment of industrial parks/zones, as well as the effects and efficacy of existing industrial parks/zones

NARD Ministry of Economy

2015

Analysis made for determined potential locations for the establishment of industrial parks/zones (with the possible reduction of the current number of sites with the aim of effectively supporting the building of infrastructure on the basis of available resources)Analysis made of the effects and appropriateness of the current parks/zones (in addition to giving recommendations for further development).


100 |

ACTION PLAN

А4Preparing projects and directing investments to equip existing and future industrial parks/zones with energy, utilities and transport infrastructure

NARDMinistry of EconomySCTM

2015 2016

Proposals prepared for projects according to the methodology that fits anticipated sources of funding (IPA funds)Made investments in the infrastructure equipment of industrial parks/zones


А5Strengthening the capability and capacity of the administration of existing incubators (trainings, exchange of experience, etc.)

Ministry of EconomyNARDMinistry of Education, Science and Technological DevelopmentSCTM

2016Realization of training, study visits, vocational training, etc.(minimum of one study visit, two professional trainings and five specialized trainings per incubator)


4.3 DIMENSION SPECIFIC OBJECTIVE NAME STRENGTHENING INNOVATION IN SMES

Measure М1 - Improvment the functionality of the national innovation system М1 - Improvment the functionality of the national innovation system


А1Reorganization of the network of scientific-research organizations (hereinafter: SRO) with a focus on the needs and demands of the economy


2015 3 SRO reorganizedFinancing through IPA funds, „SERBIA INNOVATION PROJECT“ conducted by the World Bank

А2 Analysis of the needs and demands of the economy for the services of scientific research organizations


2015 Report on the conducted analysis of the needs of priority industrial sectors for SRO services.


А3

Defining the services that each of the SROs can provide to companies and posting on the Internet presentation of the organization, with adjustments so that the page has a greater visibility


2015

Publicly accessible and unified information on the services SROs can offer to the economyNumber of updated web sitesNumber of visits companies make to SRO websites(20% increase in the number of new services for the economy in the first six months after updating this website).


А4 Co-financing of joint projects of SROs and companies/ industry

Ministry of Education, Science and Technological DevelopmentMinistry of EconomyInnovation Fund

2015 2016

Number of joint projectsNumber of new products/technologies/services/processes (an increase of 10% compared to the number of joint projects in the previous year)


А5

Continued implementation of the Programme of early development, intended for co-financing of innovative business subjects in the early stages of development, Programme of co-financing innovations intended for micro and small businesses who want to improve their presence in the domestic and international market by supporting development of new and improved products and services

Innovation Fund2015 2016

Number of co-financed projects of business entities through the Programme of early development and the Programme of co-financing innovationNumber of co-financed joint projects of business entities in the private sector and scientific-research organizations

N/A

А6 Introduction of innovation vouchers scheme

NARD Ministry of Education, Science and Technological DevelopmentMinistry of Economy

2016

Formed base of the institutions in which innovation vouchers can be usedPrepared program scheme for the implementation of innovation voucher scheme

N/A

| 101

Pillar 4

А4Preparing projects and directing investments to equip existing and future industrial parks/zones with energy, utilities and transport infrastructure

NARDMinistry of EconomySCTM

2015 2016

Proposals prepared for projects according to the methodology that fits anticipated sources of funding (IPA funds)Made investments in the infrastructure equipment of industrial parks/zones


А5Strengthening the capability and capacity of the administration of existing incubators (trainings, exchange of experience, etc.)

Ministry of EconomyNARDMinistry of Education, Science and Technological DevelopmentSCTM

2016Realization of training, study visits, vocational training, etc.(minimum of one study visit, two professional trainings and five specialized trainings per incubator)


4.3 DIMENSION SPECIFIC OBJECTIVE NAME STRENGTHENING INNOVATION IN SMES

Measure М1 - Improvment the functionality of the national innovation system М1 - Improvment the functionality of the national innovation system


А1Reorganization of the network of scientific-research organizations (hereinafter: SRO) with a focus on the needs and demands of the economy


2015 3 SRO reorganizedFinancing through IPA funds, „SERBIA INNOVATION PROJECT“ conducted by the World Bank

А2 Analysis of the needs and demands of the economy for the services of scientific research organizations


2015 Report on the conducted analysis of the needs of priority industrial sectors for SRO services.


А3

Defining the services that each of the SROs can provide to companies and posting on the Internet presentation of the organization, with adjustments so that the page has a greater visibility


2015

Publicly accessible and unified information on the services SROs can offer to the economyNumber of updated web sitesNumber of visits companies make to SRO websites(20% increase in the number of new services for the economy in the first six months after updating this website).


А4 Co-financing of joint projects of SROs and companies/ industry

Ministry of Education, Science and Technological DevelopmentMinistry of EconomyInnovation Fund

2015 2016

Number of joint projectsNumber of new products/technologies/services/processes (an increase of 10% compared to the number of joint projects in the previous year)


А5

Continued implementation of the Programme of early development, intended for co-financing of innovative business subjects in the early stages of development, Programme of co-financing innovations intended for micro and small businesses who want to improve their presence in the domestic and international market by supporting development of new and improved products and services

Innovation Fund2015 2016

Number of co-financed projects of business entities through the Programme of early development and the Programme of co-financing innovationNumber of co-financed joint projects of business entities in the private sector and scientific-research organizations

N/A

А6 Introduction of innovation vouchers scheme

NARD Ministry of Education, Science and Technological DevelopmentMinistry of Economy

2016

Formed base of the institutions in which innovation vouchers can be usedPrepared program scheme for the implementation of innovation voucher scheme

N/A

102 |

ACTION PLAN

А7 Enable “industrial PhDs”


Ministry of Economy

2016Created the legal framework and mechanisms for “industrial PhDs”

Develop awareness of enterprises about the benefits of doctoral students in companies

N/A

А8 Put technology broker services into operation


Ministry of Economy

2016

Prepared a multi-year financial support plan to support the network of technology brokers;

Minimum of 5 contracts concluded between SMEs and SROs on the basis of technology brokers mediation


А9 Strengthen the capacity of technology transfer centres


Ministry of Economy

2015

Prepared the plan for further development of technology transfer centers and the improvement of their services

Number of services provided (minimum of two signed contracts per year)

Donor projects, projects through the EU program HORIZON 2020, ERASMUS program; financing of human resources through the University

А10Map the potentials of the creative industry in Serbia and prepare recommendations for further development

NARD


Ministry of Economy

CCIS

2016 Report on the conducted analysis. N/A

Measure М2 - Improve the support for highly innovative SMEs, eco-innovation, improvement of energy efficiency and efficient use of resources

М2 - Improve the support for highly innovative SMEs, eco-innovation, improvement of energy efficiency and efficient use of resources


А1 Support the establishment of new business entities on the basis of research at the university (“spin-off”)

Innovation Fund


Ministry of Economy

Technology incubators

2015Supported the establishment of a minimum of five new spin-off companies through the program of early development and support of technology incubators


А2 Organize workshops on the importance of eco-innovation and the green economy



Ministry of Economy

Ministry of Agriculture and Environmental Protection

Enterprise Europe Network (EEN)

2015

Number of workshops (minimum of one workshop during the year in each region)

Identify at least two examples of good practice per year and promote them in all events and in the media


А3Provide technical assistance to companies for the preparation of proposals for eco-innovations within the European Union project Horizon 2020



CCIS

2015

2016

Number of supported companies (minimum of three per year)

Number of projects acquired (minimum of one per year)


CCIS- Enterprise Europe Network project

| 103

Pillar 4

А7 Enable “industrial PhDs”


Ministry of Economy

2016Created the legal framework and mechanisms for “industrial PhDs”

Develop awareness of enterprises about the benefits of doctoral students in companies

N/A

А8 Put technology broker services into operation


Ministry of Economy

2016

Prepared a multi-year financial support plan to support the network of technology brokers;

Minimum of 5 contracts concluded between SMEs and SROs on the basis of technology brokers mediation


А9 Strengthen the capacity of technology transfer centres


Ministry of Economy

2015

Prepared the plan for further development of technology transfer centers and the improvement of their services

Number of services provided (minimum of two signed contracts per year)

Donor projects, projects through the EU program HORIZON 2020, ERASMUS program; financing of human resources through the University

А10Map the potentials of the creative industry in Serbia and prepare recommendations for further development

NARD


Ministry of Economy

CCIS

2016 Report on the conducted analysis. N/A

Measure М2 - Improve the support for highly innovative SMEs, eco-innovation, improvement of energy efficiency and efficient use of resources

М2 - Improve the support for highly innovative SMEs, eco-innovation, improvement of energy efficiency and efficient use of resources


А1 Support the establishment of new business entities on the basis of research at the university (“spin-off”)

Innovation Fund


Ministry of Economy

Technology incubators

2015Supported the establishment of a minimum of five new spin-off companies through the program of early development and support of technology incubators


А2 Organize workshops on the importance of eco-innovation and the green economy



Ministry of Economy

Ministry of Agriculture and Environmental Protection


2015

Number of workshops (minimum of one workshop during the year in each region)

Identify at least two examples of good practice per year and promote them in all events and in the media


А3Provide technical assistance to companies for the preparation of proposals for eco-innovations within the European Union project Horizon 2020



CCIS

2015

2016

Number of supported companies (minimum of three per year)

Number of projects acquired (minimum of one per year)


CCIS- Enterprise Europe Network project

104 |

ACTION PLAN

Measure М3 - Provide support for better absorption and utilization of funds from the European Union project Horizon 2020, for research, development and innovation

М3 - Provide support for better absorption and utilization of funds from the European Union project Horizon 2020, for research, development and innovation


А1 Organize info days for SMEs and SROs with the aim of promoting public calls within Horizon 2020

Ministry of Education, Science and Technological DevelopmentEnterprise Europe Network (EEN)Ministry of EconomyCCISClusters and other business associations

20152016

Minimum of one info day per region after the publication of the public callsDetermine the minimum one example of good practice annually and promote it in all events and in the media

National budget –allocation for regular operationCCIS – Enterprise Europe Network project

А2Organize trainings for SMEs for writing project proposals from the Horizon 2020 program for SME instrument program

Ministry of Education, Science and Technological DevelopmentMinistry of EconomyEnterprise Europe Network (EEN)CCIS

20152016

Number of trainings (minimum of one training per region during the year)Number of project proposals submitted, (minimum of three proposals submitted during the year)Number of projects acquired (minimum of one per year)

GIZ conducts a pilot project –Municipal Economic Development in Eastern Serbia through RARIS, Zaječar in relation to the writing of project proposal from Horizon 2020 for SMEs instrument CCIS – Enterprise Europe Network project

Measure М4 - Strengthen the awareness of SMEs of the importance of innovation for their competitiveness М4 - Strengthen the awareness of SMEs of the importance of innovation for their competitiveness


А1

Promote examples of good practice of innovative SMEs, cooperation of SROs and SMEs on specific projects, as well as SMEs that use the services of the creative industry

Ministry of Education, Science and Technological DevelopmentMinistry of EconomyNARDCCISclusters and other business associations

20152016

Number of workshops (3-5 workshops per year)Number of booklets with examples of good practice (one brochure per year)


4.4 DIMENSION SPECIFIC OBJECTIVE NAME STIMULATING BUSINESS ASSOCIATION AND CREATING VALUE CHAINS

Measure М1 – Supporting joint performace on the market М1 – Supporting joint performace on the market


А1

Continuation of the program of financial support for cluster development, with particular emphasis on the development of joint products and joint bids for the export markets

NARDMinistry of EconomyCCISSerbia Investment and Export Promotion Agency (hereinafter: SIEPA)in cooperation with associations and clusters

20152016

Number of new clusters/consortiums (2 per year)Growth of existing clusters (5-10%)Export growth for clusters/consortiums (15%)Increase in the number of customers (by 10%)


| 105

Pillar 4

Measure М3 - Provide support for better absorption and utilization of funds from the European Union project Horizon 2020, for research, development and innovation

М3 - Provide support for better absorption and utilization of funds from the European Union project Horizon 2020, for research, development and innovation


А1 Organize info days for SMEs and SROs with the aim of promoting public calls within Horizon 2020

Ministry of Education, Science and Technological DevelopmentEnterprise Europe Network (EEN)Ministry of EconomyCCISClusters and other business associations

20152016

Minimum of one info day per region after the publication of the public callsDetermine the minimum one example of good practice annually and promote it in all events and in the media

National budget –allocation for regular operationCCIS – Enterprise Europe Network project

А2Organize trainings for SMEs for writing project proposals from the Horizon 2020 program for SME instrument program

Ministry of Education, Science and Technological DevelopmentMinistry of EconomyEnterprise Europe Network (EEN)CCIS

20152016

Number of trainings (minimum of one training per region during the year)Number of project proposals submitted, (minimum of three proposals submitted during the year)Number of projects acquired (minimum of one per year)

GIZ conducts a pilot project –Municipal Economic Development in Eastern Serbia through RARIS, Zaječar in relation to the writing of project proposal from Horizon 2020 for SMEs instrument CCIS – Enterprise Europe Network project

Measure М4 - Strengthen the awareness of SMEs of the importance of innovation for their competitiveness М4 - Strengthen the awareness of SMEs of the importance of innovation for their competitiveness


А1

Promote examples of good practice of innovative SMEs, cooperation of SROs and SMEs on specific projects, as well as SMEs that use the services of the creative industry

Ministry of Education, Science and Technological DevelopmentMinistry of EconomyNARDCCISclusters and other business associations

20152016

Number of workshops (3-5 workshops per year)Number of booklets with examples of good practice (one brochure per year)


4.4 DIMENSION SPECIFIC OBJECTIVE NAME STIMULATING BUSINESS ASSOCIATION AND CREATING VALUE CHAINS

Measure М1 – Supporting joint performace on the market М1 – Supporting joint performace on the market


А1

Continuation of the program of financial support for cluster development, with particular emphasis on the development of joint products and joint bids for the export markets

NARDMinistry of EconomyCCISSerbia Investment and Export Promotion Agency (hereinafter: SIEPA)in cooperation with associations and clusters

20152016

Number of new clusters/consortiums (2 per year)Growth of existing clusters (5-10%)Export growth for clusters/consortiums (15%)Increase in the number of customers (by 10%)


106 |

ACTION PLAN

Measure М2 – Creating new value chains and increase in the level of product finalisation М2 – Creating new value chains and increase in the level of product finalisation


А1 Organizing the event “Meet the customer”

SIEPAMinistry of EconomyCCISNARD in cooperation with associations and clusters

20152016

Number of events (2 times on annual basis)Number of participants (50 per event)Number of contacts achieved (100 per event)Volume of achieved cooperation (5 milion EUR)


А2 Analysis of the possibility of inclusion of creative industry in value chains of traditional industries

Ministry of Economy SIEPACCIS in cooperation with associations and clusters

2015 Prepared study with recommendations CCIS budget

| 107

Pillar 4

Measure М2 – Creating new value chains and increase in the level of product finalisation М2 – Creating new value chains and increase in the level of product finalisation


А1 Organizing the event “Meet the customer”

SIEPAMinistry of EconomyCCISNARD in cooperation with associations and clusters

20152016

Number of events (2 times on annual basis)Number of participants (50 per event)Number of contacts achieved (100 per event)Volume of achieved cooperation (5 milion EUR)


А2 Analysis of the possibility of inclusion of creative industry in value chains of traditional industries

Ministry of Economy SIEPACCIS in cooperation with associations and clusters

2015 Prepared study with recommendations CCIS budget

108 |

ACTION PLAN

PILLAR-5 OVERALL OBJECTIVE – IMPROVEMENT IN THE APPROACH TO NEW MARKETS

5.1 DIMENSION SPECIFIC OBJECTIVE NAME ENSURING CONTINUOUS SUPPORT TO SMES FOR THE APROACHON NEW MARKETS

Measure М1 –Improvment availability and quality of available information about foreign (priority) markets М1 –Improvment availability and quality of available information about foreign (priority) markets


А1 Improvement of existing portal for exporters on SIEPA’s website

SIEPANARDCCISMinistry of Economy

2015

Higher scope and quality of information (all information necessary for exporters, starting from technical guidelines regarding export to specific information necessary for operations at particular priority markets)Increase in number of visits to the portal (up to 500 visits a month)


А2

Creation and regular update of information about the most important export markets (including information about tariffs, export preferences, rules about origin, legal framework, requirements regarding product safety, packing and labelling, conformity proofs, free zones, logistics, invoicing, payment methods, transportation, risk assessment and insurance, VAT, etc.)

SIEPAMinistry of Foreign AffairsMinistry of Trade, Tourism and TelecommunicationNARDCCIS in cooperation with clusters and other business associations

20152016

Number of electronic brochures on priority markets (at least 3 brochures a year)


А3

Analysis of services and performances that diplomatic-consular representative offices (hereinafter: DCRO) provide and which could be provided to local enterprises following economic advisors of other countries

Ministry of Trade, Tourism and TelecommunicationMinistry of EconomyMinistry of Foreign AffairsCCIS

2015 Study with recommendationsNational budget –allocation for regular operationCCIS Budget

А4Determining and development of services for exporters that DCRO and representative offices of CCIS will provide to SME


2015

New model of service providing to exporters with objective to inform and give guidelines to SMEs about market conditions and the finding of commercial partners on most important export markets, as well as to institutions on those markets that can also render support to exportersDrawing up a guide for operations and performance indicatorNumber of rendered services and DCRO training (5 a month per advisor)

National budget –allocation for regular operationCCIS Budget

А5

Creation of database with contacts of economic advisors at DCRO on priority markets and posting their contacts on websites of SIEPA, CCIS and Entrepreneurship Service

Ministry of Trade, Tourism and TelecommunicationMinistry of Foreign AffairsMinistry of EconomyNARDSIEPA

2015 Database of contacts available on web portals SIEPA, CIS and Entrepreneurial service




А1

Development of counselling services towards priority sectors and demands of business entities (readiness of a business entity for export, market analysis, drawing up export strategy, etc.)

SIEPAMinistry of EconomyNARDCCIS and other business associations

20152016

Number of new counselling services (5 new services)Number of trained service providers (25 trained service providers)Guides for service providing (5 guides)

National budget –allocation for regular operation Services CCIS Budget

| 109

Pillar 5

PILLAR-5 OVERALL OBJECTIVE – IMPROVEMENT IN THE APPROACH TO NEW MARKETS

5.1 DIMENSION SPECIFIC OBJECTIVE NAME ENSURING CONTINUOUS SUPPORT TO SMES FOR THE APROACHON NEW MARKETS

Measure М1 –Improvment availability and quality of available information about foreign (priority) markets М1 –Improvment availability and quality of available information about foreign (priority) markets


А1 Improvement of existing portal for exporters on SIEPA’s website

SIEPANARDCCISMinistry of Economy

2015

Higher scope and quality of information (all information necessary for exporters, starting from technical guidelines regarding export to specific information necessary for operations at particular priority markets)Increase in number of visits to the portal (up to 500 visits a month)


А2

Creation and regular update of information about the most important export markets (including information about tariffs, export preferences, rules about origin, legal framework, requirements regarding product safety, packing and labelling, conformity proofs, free zones, logistics, invoicing, payment methods, transportation, risk assessment and insurance, VAT, etc.)

SIEPAMinistry of Foreign AffairsMinistry of Trade, Tourism and TelecommunicationNARDCCIS in cooperation with clusters and other business associations

20152016

Number of electronic brochures on priority markets (at least 3 brochures a year)


А3

Analysis of services and performances that diplomatic-consular representative offices (hereinafter: DCRO) provide and which could be provided to local enterprises following economic advisors of other countries


2015 Study with recommendationsNational budget –allocation for regular operationCCIS Budget

А4Determining and development of services for exporters that DCRO and representative offices of CCIS will provide to SME


2015

New model of service providing to exporters with objective to inform and give guidelines to SMEs about market conditions and the finding of commercial partners on most important export markets, as well as to institutions on those markets that can also render support to exportersDrawing up a guide for operations and performance indicatorNumber of rendered services and DCRO training (5 a month per advisor)

National budget –allocation for regular operationCCIS Budget

А5

Creation of database with contacts of economic advisors at DCRO on priority markets and posting their contacts on websites of SIEPA, CCIS and Entrepreneurship Service

Ministry of Trade, Tourism and TelecommunicationMinistry of Foreign AffairsMinistry of EconomyNARDSIEPA

2015 Database of contacts available on web portals SIEPA, CIS and Entrepreneurial service




А1

Development of counselling services towards priority sectors and demands of business entities (readiness of a business entity for export, market analysis, drawing up export strategy, etc.)

SIEPAMinistry of EconomyNARDCCIS and other business associations

20152016

Number of new counselling services (5 new services)Number of trained service providers (25 trained service providers)Guides for service providing (5 guides)

National budget –allocation for regular operation Services CCIS Budget

110 |

ACTION PLAN

А2 Preparing of a packet of support to SME for increase in export

SIEPA

Ministry of Economy

NARD

CCIS in cooperation with Exporters Association, clusters and other business associations

2015 2016

Number of supported enterprises (70 services)

Increase in scope of export with concrete business entities (up to 15% in a year after using the service)


CCIS Budget

А3 Preparing of a packet of support to SME for export start-up

SIEPA

Ministry of Economy

NARD

2015 2016

Number of provided services (100)

Number of new exporters (40)National budget –allocation for regular operation

А4

Workshops and seminars about the importance and the method of intellectual property protection and services of Diagnostics of intellectual property for SMEs

Intellectual Property Office 2016

Number of workshops and seminars (10 a year)

Number of participants (150 a year)

Number of diagnostic services (20 a year)

N/А

А5

Creation of brochures about the method of intellectual property protection, procedure, documents for the protection on national and international level

Intellectual Property Office 2016 Number of brochures a year drawn up or updated (5 brochures) N/A

Measure М3 –Establishing contacts with contingent business partners М3 –Establishing contacts with contingent business partners


А1 Preparing database about fairs and posting on websites of SIEPA, CCIS and Entrepreneurial Service

SIEPA

NARD

Ministry of Economy in cooperation with Exporters Association, CCIS, clusters and other business associations

2015Established database of international fairs

Higher number of fairs in which SMEs from Serbia participate


CCIS Budget

А2 Improvement and promotion of database on exporters

SIEPA

NARD

Ministry of Economy in cooperation with CCIS, clusters and other business associations

2015

Increase in number of exporters in database (1000 exporters in database)

Increase in scope of information about each particular exporter

Updated information about exporters

Increase in number of visits to database (500 visits a month)

Increase in visibility in EEN network


А3 Program of co-financing down payment, (group and individually) at priority fairs

SIEPA in cooperation with CCIS

Ministry of Economy

2015

2016

Number of fairs (30 a year)

Number of supported SMEs (400 a year)

Number of contacts with foreign partners (500 a year)

Scope of achieved cooperation (10 million EUR)


А4Organization of the promotion of Serbian industry (mini fairs of Serbian industry and the organizing of business missions) on various markets

SIEPA

CCIS in cooperation with the Association of Exporters, clusters and other business associations


Ministry of Economy

Ministry of Foreign Affairs

2015

2016

Number of mini fairs and missions (10 a year)

Number of SMEswhich participated in these events (200 SMEs a year)

Number of contacts with foreign partners (500)

Scope of achieved cooperation in the next year (5 million EUR)


CCIS –Enterprise Europe Network project

| 111

Pillar 5

А2 Preparing of a packet of support to SME for increase in export

SIEPA

Ministry of Economy

NARD

CCIS in cooperation with Exporters Association, clusters and other business associations

2015 2016

Number of supported enterprises (70 services)

Increase in scope of export with concrete business entities (up to 15% in a year after using the service)


CCIS Budget

А3 Preparing of a packet of support to SME for export start-up

SIEPA

Ministry of Economy

NARD

2015 2016

Number of provided services (100)

Number of new exporters (40)National budget –allocation for regular operation

А4

Workshops and seminars about the importance and the method of intellectual property protection and services of Diagnostics of intellectual property for SMEs

Intellectual Property Office 2016

Number of workshops and seminars (10 a year)

Number of participants (150 a year)

Number of diagnostic services (20 a year)

N/А

А5

Creation of brochures about the method of intellectual property protection, procedure, documents for the protection on national and international level

Intellectual Property Office 2016 Number of brochures a year drawn up or updated (5 brochures) N/A

Measure М3 –Establishing contacts with contingent business partners М3 –Establishing contacts with contingent business partners


А1 Preparing database about fairs and posting on websites of SIEPA, CCIS and Entrepreneurial Service

SIEPA

NARD

Ministry of Economy in cooperation with Exporters Association, CCIS, clusters and other business associations

2015Established database of international fairs

Higher number of fairs in which SMEs from Serbia participate


CCIS Budget

А2 Improvement and promotion of database on exporters

SIEPA

NARD

Ministry of Economy in cooperation with CCIS, clusters and other business associations

2015

Increase in number of exporters in database (1000 exporters in database)

Increase in scope of information about each particular exporter

Updated information about exporters

Increase in number of visits to database (500 visits a month)

Increase in visibility in EEN network


А3 Program of co-financing down payment, (group and individually) at priority fairs

SIEPA in cooperation with CCIS

Ministry of Economy

2015

2016

Number of fairs (30 a year)

Number of supported SMEs (400 a year)

Number of contacts with foreign partners (500 a year)



А4Organization of the promotion of Serbian industry (mini fairs of Serbian industry and the organizing of business missions) on various markets

SIEPA

CCIS in cooperation with the Association of Exporters, clusters and other business associations


Ministry of Economy

Ministry of Foreign Affairs

2015

2016

Number of mini fairs and missions (10 a year)



Scope of achieved cooperation in the next year (5 million EUR)


CCIS –Enterprise Europe Network project

112 |

ACTION PLAN

А5 Organizing of business meetings of industrialists in the country with foreign partners


SIEPA

NARD

CCIS in cooperation with Association of Exporters, clusters and other business associations

2015

2016

Number of „business to business”events (20 events)




CCIS – project Enterprise Europe Network

А6 Promoting campaign for presenting services of EEN Enterprise Europe Network (EEN)

2015

2016

Number of held promoting events (20 a year)

Number of people attending events (2000 a year)

Number of media releases about EEN (5 – 10 releases per event)


А7Increase in efficiency of services of the Enterprise Europe Network for exporters, on the basis of contacts with EEN members in other countries


NARD2015 Number of achieved business contacts of exporters (minimum 10 a

year)National budget –allocation for regular operation

5.2 DIMENSION SPECIFIC OBJECTIVE NAME REDUCTION AND OVERCOMING OF TECHNICAL OBSTACLES IN TRADE

Measure М1 –Synchronizing with technical regulations and standards of the European Union М1 –Synchronizing with technical regulations and standards of the European Union


А1

Introduction and application of technical regulations – directive of New and directives of Old approach, as well as the second legislation of the European Union into legislation of the Republic of Serbia

Ministry of Economy

Ministry of Health

Ministry of Construction, Traffic and Infrastructure


Ministry of Trade, Tourism and Telecommunication

2015

2016

Number of introduced technical regulations into the legislation of the Republic of Serbia (20)

Number of products synchronized with new regulations (100)

Project “Private sector development” IPA2013- Twinning contract

А2

Reinvestigation of conformity of Serbian standards with European and International standards and innovation of lists of standards that took over synchronized European lists of technical standards on product safety, and which are determined for the purpose of full implementation of technical regulations

Institute for Standardization of Serbia

Ministry of Economy

Ministry of Health




Ministry of Agriculture and Environment Protection

2015

2016

Number of innovative standards (2000 a year)

Lists of standards innovated (5 a year)Project “Private sector development” IPA2013- Twinning contract

| 113

Pillar 5

А5 Organizing of business meetings of industrialists in the country with foreign partners


SIEPA

NARD

CCIS in cooperation with Association of Exporters, clusters and other business associations

2015

2016

Number of „business to business”events (20 events)




CCIS – project Enterprise Europe Network

А6 Promoting campaign for presenting services of EEN Enterprise Europe Network (EEN)

2015

2016

Number of held promoting events (20 a year)

Number of people attending events (2000 a year)

Number of media releases about EEN (5 – 10 releases per event)


А7Increase in efficiency of services of the Enterprise Europe Network for exporters, on the basis of contacts with EEN members in other countries


NARD2015 Number of achieved business contacts of exporters (minimum 10 a

year)National budget –allocation for regular operation

5.2 DIMENSION SPECIFIC OBJECTIVE NAME REDUCTION AND OVERCOMING OF TECHNICAL OBSTACLES IN TRADE

Measure М1 –Synchronizing with technical regulations and standards of the European Union М1 –Synchronizing with technical regulations and standards of the European Union


А1

Introduction and application of technical regulations – directive of New and directives of Old approach, as well as the second legislation of the European Union into legislation of the Republic of Serbia

Ministry of Economy

Ministry of Health




2015

2016

Number of introduced technical regulations into the legislation of the Republic of Serbia (20)

Number of products synchronized with new regulations (100)


А2

Reinvestigation of conformity of Serbian standards with European and International standards and innovation of lists of standards that took over synchronized European lists of technical standards on product safety, and which are determined for the purpose of full implementation of technical regulations


Ministry of Economy

Ministry of Health




Ministry of Agriculture and Environment Protection

2015

2016

Number of innovative standards (2000 a year)

Lists of standards innovated (5 a year)Project “Private sector development” IPA2013- Twinning contract

114 |

ACTION PLAN

А3

Drawing up the Action Plan in the field of synchronizing Serbian technical regulations in non-synchronized areas and their improvement (synchronizing with the state of development and technique and with articles 34 and 36 of the Contract on the functioning of the European Union) and declaring it null and void

Ministry of Economy

Ministry of Health




2015 Action plan drafter Project “Private sector development” IPA2013- Twinning contract



А1Establishing the Strategy to improve the system of infrastructure of quality in the Republic of Serbia in the period 2015-2020

Ministry of Economy 2015 Plan for development of infrastructure of quality Project “Private sector development” IPA2013- Twinning contract

А2Maintaining the status of a signer of multilateral arrangements with European and international organizations for accreditation (ЕА, ILAC, IAF)

Accreditation Body of Serbia2015

2016International arrangements Project “Private sector development”

IPA2013- Twinning contract

А3 Development of new sector schemes of accreditation Accreditation Body of Serbia

2015

2016Number of new sector schemes of accreditation depends on current demands of SMEs


А4 Improving capacities of bodies for conformity assessment

Ministry of Economy

Directorate of Measures and Precious Metals

2015

2016

Number of trainings (15-20 trainings a year)

Number of participants in trainings (15-20 participants per training)

New equipment procured

Number ofbodies for conformity assessment trained and accredited for new conformity assessment (2 per year)

2015:


2016:

Project “Private sector development” IPA2013- supply contract

А5 Improving knowledge about necessity for conformity assessment

Ministry of Economy

Accreditation Body of Serbia

2015

2016

Number of trainings (5 trainings per year)

Number of participants in trainings (15-20 participants per training)Project “Private sector development” IPA2013- Twinning contract

А6 Increase in number of accredited bodies for conformity assessment Accreditation Body of Serbia

2015

2016Number of accredited bodies for conformity assessment adjusted to demands of industry


А7

Improving capacities of laboratories of Directorate of Measures and Precious Metals and the preparation for full implementation of European legislation in metrology

Ministry of Economy


2015

2016

Number of trainings (up to 20 trainings a year)

Number of participants in trainings (up to 30 per training)



А8 Improving availability of information about infrastructure of quality

Ministry of Economy



Institute for Standardization of Serbia accredited bodies for conformity assessment

Permanent

Regular updating and improvements of web portal “TEHNIS”4 of the Ministry of Economy

Higher number of visits to portals

Number of new brochures and catalogues (5 brochures)


А9Improved arrangement of rules for laboratory operations with objective to increase safety of public health

Ministry of Health

Accredited bodies for conformity assessment

2015

Introduction of the prohibition of laboratory operations in the field of health care services in blocks of flats without separate entrances and to improve all other standards of laboratory operations within the context of broader public health


| 115

Pillar 5

4 Sector for infrastructure of quality of the Ministry of Economycreated a web portal TEHNIS to facilitate the informing of busines entities on technical reqirements that products must meet when placed on the market of the Republic of Serbia, http://www.tehnis.privreda.gov.rs/O_TEHNISU.html

А3

Drawing up the Action Plan in the field of synchronizing Serbian technical regulations in non-synchronized areas and their improvement (synchronizing with the state of development and technique and with articles 34 and 36 of the Contract on the functioning of the European Union) and declaring it null and void

Ministry of Economy

Ministry of Health




2015 Action plan drafter Project “Private sector development” IPA2013- Twinning contract



А1Establishing the Strategy to improve the system of infrastructure of quality in the Republic of Serbia in the period 2015-2020

Ministry of Economy 2015 Plan for development of infrastructure of quality Project “Private sector development” IPA2013- Twinning contract

А2Maintaining the status of a signer of multilateral arrangements with European and international organizations for accreditation (ЕА, ILAC, IAF)

Accreditation Body of Serbia2015

2016International arrangements Project “Private sector development”

IPA2013- Twinning contract

А3 Development of new sector schemes of accreditation Accreditation Body of Serbia

2015

2016Number of new sector schemes of accreditation depends on current demands of SMEs


А4 Improving capacities of bodies for conformity assessment

Ministry of Economy


2015

2016

Number of trainings (15-20 trainings a year)

Number of participants in trainings (15-20 participants per training)


Number ofbodies for conformity assessment trained and accredited for new conformity assessment (2 per year)

2015:


2016:

Project “Private sector development” IPA2013- supply contract

А5 Improving knowledge about necessity for conformity assessment

Ministry of Economy


2015

2016

Number of trainings (5 trainings per year)

Number of participants in trainings (15-20 participants per training)Project “Private sector development” IPA2013- Twinning contract

А6 Increase in number of accredited bodies for conformity assessment Accreditation Body of Serbia

2015

2016Number of accredited bodies for conformity assessment adjusted to demands of industry


А7

Improving capacities of laboratories of Directorate of Measures and Precious Metals and the preparation for full implementation of European legislation in metrology

Ministry of Economy


2015

2016

Number of trainings (up to 20 trainings a year)

Number of participants in trainings (up to 30 per training)



А8 Improving availability of information about infrastructure of quality

Ministry of Economy



Institute for Standardization of Serbia accredited bodies for conformity assessment

Permanent

Regular updating and improvements of web portal “TEHNIS”4 of the Ministry of Economy

Higher number of visits to portals

Number of new brochures and catalogues (5 brochures)


А9Improved arrangement of rules for laboratory operations with objective to increase safety of public health

Ministry of Health

Accredited bodies for conformity assessment

2015

Introduction of the prohibition of laboratory operations in the field of health care services in blocks of flats without separate entrances and to improve all other standards of laboratory operations within the context of broader public health


116 |

ACTION PLAN

Measure М3 –Raising awareness of SMEs about the importance of conformin products with requirements of technical regulations and standards

М3 –Raising awareness of SMEs about the importance of conformin products with requirements of technical regulations and standards


А1Preparation and implementation of the training of SMEs on sector specific technical regulations and Serbian standards and related documents

Ministry of Economy

NARD


2015

Guides for trainings drawn up (50 guides)

Number of trainings for lecturers (2 trainings a year)

Number of trained lecturers (30 a year)

Number of trainings of SMEs (30 trainings a year)


А2Implementation of promoting activity about the importance and the role of standardization in print and electronic media


Ministry of Economy

Other ministries

2015

2016Number of released news and information in print and electronic media (30 a year)





А1

Preparing and implementing the program of support to SMEs for synchronizing products with requirements of technical regulations and standards

Ministry of Economy

NARD


2015

Prepared program and tender documentation

Number of SMEs that apply (100 enterprises per program)

Number of enterprises which synchronized their products and/or production processes with requirements of technical regulations and standards (500 a year)

Improvements in export structure

Increase in scope of export (5%)


А2Defining criteria for translating standards and determining priority standards for translation into Serbian language

Ministry of Economy

NARD



2015

2016

Identified list of standards that must be translated from English into Serbian language throughout the year to meet demand s of SMEs and priorities identified


А3

Establishing mechanisms of sustainable financing of costs of translating standards with inclusion of interested parties in the process of translating the standards

Ministry of Economy

NARD

SMEs (representatives of small and medium-sized enterprises)

2015

Established mechanism of sustainable financing of costs of translating the standards

Number of interested parties, representatives of SMEs that are included in the translation of standards increased by 20%


А4

Translation of taken over priority European standards from English into Serbian language so their application could be facilitated for users of standards in the Republic of Serbia


2015

2016

Number of translated standards (300 a year)

Increase in sale of translated standards (by 10% a year)National budget –allocation for regular operation

| 117

Pillar 5

Measure М3 –Raising awareness of SMEs about the importance of conformin products with requirements of technical regulations and standards

М3 –Raising awareness of SMEs about the importance of conformin products with requirements of technical regulations and standards


А1Preparation and implementation of the training of SMEs on sector specific technical regulations and Serbian standards and related documents

Ministry of Economy

NARD


2015

Guides for trainings drawn up (50 guides)

Number of trainings for lecturers (2 trainings a year)

Number of trained lecturers (30 a year)

Number of trainings of SMEs (30 trainings a year)


А2Implementation of promoting activity about the importance and the role of standardization in print and electronic media


Ministry of Economy

Other ministries

2015

2016Number of released news and information in print and electronic media (30 a year)





А1

Preparing and implementing the program of support to SMEs for synchronizing products with requirements of technical regulations and standards

Ministry of Economy

NARD


2015

Prepared program and tender documentation

Number of SMEs that apply (100 enterprises per program)

Number of enterprises which synchronized their products and/or production processes with requirements of technical regulations and standards (500 a year)

Improvements in export structure

Increase in scope of export (5%)


А2Defining criteria for translating standards and determining priority standards for translation into Serbian language

Ministry of Economy

NARD



2015

2016

Identified list of standards that must be translated from English into Serbian language throughout the year to meet demand s of SMEs and priorities identified


А3

Establishing mechanisms of sustainable financing of costs of translating standards with inclusion of interested parties in the process of translating the standards

Ministry of Economy

NARD

SMEs (representatives of small and medium-sized enterprises)

2015

Established mechanism of sustainable financing of costs of translating the standards

Number of interested parties, representatives of SMEs that are included in the translation of standards increased by 20%


А4

Translation of taken over priority European standards from English into Serbian language so their application could be facilitated for users of standards in the Republic of Serbia


2015

2016

Number of translated standards (300 a year)

Increase in sale of translated standards (by 10% a year)National budget –allocation for regular operation

118 |

ACTION PLAN

PILLAR-6 DEVELOPMENT AND PROMOTION OF ENTREPRENEURIAL SPIRIT AND ENCOURAGING OF WOMEN’S ENTREPRENEURSHIP, YOUTH ENTREPRENEURSHIP AND SOCIAL ENTREPRENEURSHIP

6.1 DIMENSION SPECIFIC OBJECTIVE NAME IMPROVEMENT OF STATISTICAL MONITORING AND RESEARCH OF ENTREPRENEURSHIP OF WOMEN, YOUTH AND SOCIAL ENTREPRENEURSHIP

Measure М1 –Development of mechanism for strategic collecting, processing and monitoring information about women’s entrepreneurship, youth entrepreneurship and social entrepreneurship

М1 –Development of mechanism for strategic collecting, processing and monitoring information about women’s entrepreneurship, youth entrepreneurship and social entrepreneurship


А1 Establishment of reliable statistical data in accordance with EUROSTAT indicators

SORSMinistry of Economy

2016 Identified indicators for monitoring situation in SMEs Н/А

А2 Improvement of conjoined databases for monitoring enterprises and companies

SORSNational Employment ServiceSBRATax AdministrationCustoms AdministrationNARD

2015

On the basis of established relation between company number of a company and age and gender of the founder and the manager of the company, a search by gender and age is made possible in other databases for monitoring enterprises and companies


А3 Implementation of GEM (Global Entrepreneurship Monitor) research Licensed performer 2016 Drawn up GEM report Н/А

Measure М2 –Establishing of a system of regular and comparable monitoring of women’s youth and social entrepreneurship

М2 –Establishing of a system of regular and comparable monitoring of women’s youth and social entrepreneurship


А1 To define indicators for monitoringSBRASORSMinistry of Youth and Sport

2015

Drawn up analysis of available statistical data on the basis of which a proposal for indicators for monitoring women’s, youth and social entrepreneurship is made and a method of data collecting is determined

Own income of SBRA (income from remunerations)

А2 To make available statistical data for monitoring entrepreneurship gender sensitive

SORS

SBRA2015

Available gender sensitive data

Inquiry into gender sensitive differences in entrepreneurship made possible


А3

To establish the network between information about gender and age of the founder and the manager of a company and the company name in the registry of business entities

SBRA

Statistical Office of the Republic of Serbia

2015In the Business Registers Agency it is possible to make inquiry of business entities by gender and age of the founder and the manager of business entities (with protection of personal information)


А4 To encompass information about training and mentoring women entrepreneurs in official report NARD 2015 Information about training and mentoring of women entrepreneurs

encompassed in reports of NARDNational budget –allocation for regular operation

А5

Within the annual report on SMEs to introduce regular reporting about women’s entrepreneurship, social entrepreneurship and entrepreneurship of the youth

NARD

Ministry of Economy

Ministry of Youth and Sports

2015Annual report on SMEs released by NARD and Ministry of Economy includes information about women’s entrepreneurship, social entrepreneurship and entrepreneurship of the youth


| 119

Pillar 6

PILLAR-6 DEVELOPMENT AND PROMOTION OF ENTREPRENEURIAL SPIRIT AND ENCOURAGING OF WOMEN’S ENTREPRENEURSHIP, YOUTH ENTREPRENEURSHIP AND SOCIAL ENTREPRENEURSHIP

6.1 DIMENSION SPECIFIC OBJECTIVE NAME IMPROVEMENT OF STATISTICAL MONITORING AND RESEARCH OF ENTREPRENEURSHIP OF WOMEN, YOUTH AND SOCIAL ENTREPRENEURSHIP

Measure М1 –Development of mechanism for strategic collecting, processing and monitoring information about women’s entrepreneurship, youth entrepreneurship and social entrepreneurship

М1 –Development of mechanism for strategic collecting, processing and monitoring information about women’s entrepreneurship, youth entrepreneurship and social entrepreneurship


А1 Establishment of reliable statistical data in accordance with EUROSTAT indicators

SORSMinistry of Economy

2016 Identified indicators for monitoring situation in SMEs Н/А

А2 Improvement of conjoined databases for monitoring enterprises and companies

SORSNational Employment ServiceSBRATax AdministrationCustoms AdministrationNARD

2015

On the basis of established relation between company number of a company and age and gender of the founder and the manager of the company, a search by gender and age is made possible in other databases for monitoring enterprises and companies


А3 Implementation of GEM (Global Entrepreneurship Monitor) research Licensed performer 2016 Drawn up GEM report Н/А

Measure М2 –Establishing of a system of regular and comparable monitoring of women’s youth and social entrepreneurship

М2 –Establishing of a system of regular and comparable monitoring of women’s youth and social entrepreneurship


А1 To define indicators for monitoringSBRASORSMinistry of Youth and Sport

2015

Drawn up analysis of available statistical data on the basis of which a proposal for indicators for monitoring women’s, youth and social entrepreneurship is made and a method of data collecting is determined


А2 To make available statistical data for monitoring entrepreneurship gender sensitive

SORS

SBRA2015

Available gender sensitive data

Inquiry into gender sensitive differences in entrepreneurship made possible


А3

To establish the network between information about gender and age of the founder and the manager of a company and the company name in the registry of business entities

SBRA

Statistical Office of the Republic of Serbia

2015In the Business Registers Agency it is possible to make inquiry of business entities by gender and age of the founder and the manager of business entities (with protection of personal information)


А4 To encompass information about training and mentoring women entrepreneurs in official report NARD 2015 Information about training and mentoring of women entrepreneurs

encompassed in reports of NARDNational budget –allocation for regular operation

А5

Within the annual report on SMEs to introduce regular reporting about women’s entrepreneurship, social entrepreneurship and entrepreneurship of the youth

NARD

Ministry of Economy

Ministry of Youth and Sports

2015Annual report on SMEs released by NARD and Ministry of Economy includes information about women’s entrepreneurship, social entrepreneurship and entrepreneurship of the youth


120 |

ACTION PLAN

6.2 DIMENSION SPECIFIC OBJECTIVE NAME POLITICS AND INSTRUMENTS FOR SUPPORT TO WOMEN’S, YOUTH AND SOCIAL ENTREPRENEURSHIP

Measure М1 –Include support to women’s, youth and social entrepreneurship in all state documents that can affect the economy

М1 –Include support to women’s, youth and social entrepreneurship in all state documents that can affect the economy


А1

Systematically include gender prospects, prospects of youth and social enterprises in key strategies and other documents in the field of politics of development of entrepreneurship.

RSPP


Ministry of Economy

NARD

2015

2016

Gender prospects, prospects of youth and social enterprises systematically included in key strategies and other documents in the field of politics of development of entrepreneurship


With supported by Swiss Agency for Development and Cooperation SDC–project “Support to improvements in social inclusion in the Republic of Serbia” which is being implemented by the Team for social inclusion with the RepublicSecretariat of public policies

А2

To make state programs of support toSMEs gender sensitive (especially in the field of financing, training and business connecting) and to enable the monitoring of participation of women entrepreneurs, youth and social enterprises

All institutions implementing state programs of support to SMEs

2016

While preparing programs of state support, take into account specific interests of women entrepreneurs, youth and social enterprises

Introduced mechanisms for monitoring the share of women’s, social and youth enterprises in all programs

Information about share of all these targeted groups in state programs of support to SMEs are public available

N/A

А3 Prepared and adopted legal framework for arranging social entrepreneurship


Ministry of Economy

2015Law adopted that arranges legal framework for social entrepreneurship or adopted amendments to existing regulations for arranging legal framework for social entrepreneurship


Measure М2–Increase participation of women, youth and social enterprise in various programs of support to SMEs М2–Increase participation of women, youth and social enterprise in various programs of support to SMEs


А1

To increase share of women and youth through measures of positive discrimination and state programs for support to the forming of new enterprises with objective to boost their share in total entrepreneurship

Ministry of Economy

NARD



2015 Share of women and youth in state programs for support to the forming of new enterprises increased by 10 % against 2014


А2

Within current and future state programs of support to development of existing SMEs to introduce gradually the implementation of obligatory quotas for a target group of women entrepreneurs, youth entrepreneurship and social enterprises

Ministry of Economy

NARD



2015

Within current state programs of support to development of SMEs an obligatory quota of minimum 30% for women entrepreneurs is applied (positive discrimination), wherever there is a big enough interest of women entrepreneurs

Within current state programs of training and mentoring for SMEs a quota of minimum 10% for social enterprises and youth is applied


| 121

Pillar 6

6.2 DIMENSION SPECIFIC OBJECTIVE NAME POLITICS AND INSTRUMENTS FOR SUPPORT TO WOMEN’S, YOUTH AND SOCIAL ENTREPRENEURSHIP

Measure М1 –Include support to women’s, youth and social entrepreneurship in all state documents that can affect the economy

М1 –Include support to women’s, youth and social entrepreneurship in all state documents that can affect the economy


А1

Systematically include gender prospects, prospects of youth and social enterprises in key strategies and other documents in the field of politics of development of entrepreneurship.

RSPP


Ministry of Economy

NARD

2015

2016

Gender prospects, prospects of youth and social enterprises systematically included in key strategies and other documents in the field of politics of development of entrepreneurship


With supported by Swiss Agency for Development and Cooperation SDC–project “Support to improvements in social inclusion in the Republic of Serbia” which is being implemented by the Team for social inclusion with the RepublicSecretariat of public policies

А2

To make state programs of support toSMEs gender sensitive (especially in the field of financing, training and business connecting) and to enable the monitoring of participation of women entrepreneurs, youth and social enterprises

All institutions implementing state programs of support to SMEs

2016

While preparing programs of state support, take into account specific interests of women entrepreneurs, youth and social enterprises

Introduced mechanisms for monitoring the share of women’s, social and youth enterprises in all programs

Information about share of all these targeted groups in state programs of support to SMEs are public available

N/A

А3 Prepared and adopted legal framework for arranging social entrepreneurship


Ministry of Economy

2015Law adopted that arranges legal framework for social entrepreneurship or adopted amendments to existing regulations for arranging legal framework for social entrepreneurship


Measure М2–Increase participation of women, youth and social enterprise in various programs of support to SMEs М2–Increase participation of women, youth and social enterprise in various programs of support to SMEs


А1

To increase share of women and youth through measures of positive discrimination and state programs for support to the forming of new enterprises with objective to boost their share in total entrepreneurship

Ministry of Economy

NARD



2015 Share of women and youth in state programs for support to the forming of new enterprises increased by 10 % against 2014


А2

Within current and future state programs of support to development of existing SMEs to introduce gradually the implementation of obligatory quotas for a target group of women entrepreneurs, youth entrepreneurship and social enterprises

Ministry of Economy

NARD



2015

Within current state programs of support to development of SMEs an obligatory quota of minimum 30% for women entrepreneurs is applied (positive discrimination), wherever there is a big enough interest of women entrepreneurs

Within current state programs of training and mentoring for SMEs a quota of minimum 10% for social enterprises and youth is applied


122 |

ACTION PLAN

Measure М3–To introduce special programs of support to SMEs intended exclusively to women, youth and social entrepreneurship

М3–To introduce special programs of support to SMEs intended exclusively to women, youth and social entrepreneurship


А1To implement comprehensive analysis of demand for training of women, youth entrepreneurs and social enterprises once a year

NARD

Association of Business Women

Ministry of Youth and sport

2015Comprehensive analysis of demand for training of women, youth entrepreneurs and social enterprises was conducted within general analysis of demand for the training in a special module


А2

To ensure specialised forms of support and mentoring to women entrepreneurs who are export oriented, to business women performing technologically intensive activities and alike.

SIEPA

NARD

Association of business women

2016Ensured specialised form of support and mentoring to women with technologically intensive activities and women entrepreneurs emerging on international market

N/A

А3

To develop training programs for managing family companies, with special emphasis on problems of transferring operations among generations (managing and property).

NARD

Association of Business women

CCIS

2016Developed one training program for managing family enterprises with special emphasis on problems regarding transfer of operations among generations (managing and property)

N/A

А4To improve the financing of women’s entrepreneurship, youth entrepreneurship and social entrepreneurship

Fund for Development of the Republic of Serbia

NARD

Ministry of Economy


2016At least one program of public financial institutions especially focused on demands of women entrepreneurs, young entrepreneurs and social entrepreneurs

N/A

А5To prepare recommendations for support to women entrepreneurs, social enterprises and youth enterprises for inclusion in incubators

Ministry of Economy



Ministry of Youth and Sport

2016 Prepared recommendations N/A

Measure М4 – Promotion of entrepreneurial spirit, examples of good practice, networking, establishing dialogue М4 – Promotion of entrepreneurial spirit, examples of good practice, networking, establishing dialogue


А1Promoting campaign of support to development of entrepreneurial spirit and women’s , youth and social entrepreneurship

Ministry of Economy

CCIS

Organizers of events

NARD


2015

At least 15 promoting events held within “European Week of Entrepreneurship”

Organization of promoting activities on local level through standardized set of services


CCIS Budget

А2

To establish a constant dialogue and cooperation with representatives of unions, forums and associations of women entrepreneurs, youth and networks for support to social entrepreneurship

Ministry of Economy


Unions, forums and association

2015

2016

Established regular and separate meetings at least two times a year with representatives of women entrepreneurs, young entrepreneurs and social enterprises


| 123

Pillar 6

Measure М3–To introduce special programs of support to SMEs intended exclusively to women, youth and social entrepreneurship

М3–To introduce special programs of support to SMEs intended exclusively to women, youth and social entrepreneurship


А1To implement comprehensive analysis of demand for training of women, youth entrepreneurs and social enterprises once a year

NARD

Association of Business Women

Ministry of Youth and sport

2015Comprehensive analysis of demand for training of women, youth entrepreneurs and social enterprises was conducted within general analysis of demand for the training in a special module


А2

To ensure specialised forms of support and mentoring to women entrepreneurs who are export oriented, to business women performing technologically intensive activities and alike.

SIEPA

NARD

Association of business women

2016Ensured specialised form of support and mentoring to women with technologically intensive activities and women entrepreneurs emerging on international market

N/A

А3

To develop training programs for managing family companies, with special emphasis on problems of transferring operations among generations (managing and property).

NARD

Association of Business women

CCIS

2016Developed one training program for managing family enterprises with special emphasis on problems regarding transfer of operations among generations (managing and property)

N/A

А4To improve the financing of women’s entrepreneurship, youth entrepreneurship and social entrepreneurship

Fund for Development of the Republic of Serbia

NARD

Ministry of Economy


2016At least one program of public financial institutions especially focused on demands of women entrepreneurs, young entrepreneurs and social entrepreneurs

N/A

А5To prepare recommendations for support to women entrepreneurs, social enterprises and youth enterprises for inclusion in incubators

Ministry of Economy




2016 Prepared recommendations N/A

Measure М4 – Promotion of entrepreneurial spirit, examples of good practice, networking, establishing dialogue М4 – Promotion of entrepreneurial spirit, examples of good practice, networking, establishing dialogue


А1Promoting campaign of support to development of entrepreneurial spirit and women’s , youth and social entrepreneurship

Ministry of Economy

CCIS

Organizers of events

NARD


2015

At least 15 promoting events held within “European Week of Entrepreneurship”

Organization of promoting activities on local level through standardized set of services


CCIS Budget

А2

To establish a constant dialogue and cooperation with representatives of unions, forums and associations of women entrepreneurs, youth and networks for support to social entrepreneurship

Ministry of Economy


Unions, forums and association

2015

2016

Established regular and separate meetings at least two times a year with representatives of women entrepreneurs, young entrepreneurs and social enterprises



www.privreda.gov.rs

SME · ENTREPRENEURSHIP AND COMPETITIVENESS FOR THE PERIOD FROM 2015 TO 2020 AND ... to SME needs...

Documents

Transcript of SME · ENTREPRENEURSHIP AND COMPETITIVENESS FOR THE PERIOD FROM 2015 TO 2020 AND ... to SME needs...