Economic Themes (2015) 53 (2) 6, 247-266
Ivana Kostadinović, Marija Petrović Ranđelović
Abstract: The results of numerous investigations show that the sector of small and medium sized enterprises and enterpreneurship (SMEE) represent a significant driving force of economic development of each country and that it is a potential generator of entrepreneurial ideas and innovations. With the intensification of the process of transition after 2000, SMEE has become a bearer of economic growth and employment and grown into the most dynamic and most efficient segment of the economy of the Republic of Serbia. However, these companies still face many problems in business which is only further underlined by the global financial and economic crisis. The low level of competitiveness of this sector in the Republic of Serbia represents important limit of its future development. The main competitive advantage of every modern company accented in its ability to innovate. The advantage of SMEE, among many others, is reflected in innovation. In general, SMEE due to its flexibility, as well as a homogeneous structure having a good and an important prerequisite to develop innovation and thus enhance market competitiveness. Regarding to their flexibility, it is particularly evident in periods of slow or stagnant economic activity and crises. Therefore, the main direction of development of the SME sector is an innovative approach to real market needs. Providing that, the aim of this paper is to contribute to a clearer understanding of the role and importance of SMEE for economic development of the Republic of Serbia, as well as to point out the importance of improving the competitiveness and innovativeness of this sector bodies for the future economic development of the national economy.
Keywords: SME sector; economic development; competitiveness; innovation
THE IMPORTANCE OF IMPROVING THE COMPETITIVENESS OF THE SMEEs FOR DEVELOPMENT OF THE ECONOMY OF THE REPUBLIC OF SERBIA
Ivana Kostadinović, Marija Petrović Ranđelović
Abstract: The results of numerous investigations show that the sector of small and medium sized enterprises and enterpreneurship (SMEE) represent a significant driving force of economic development of each country and that it is a potential generator of entrepreneurial ideas and innovations. With the intensification of the process of transition after 2000, SMEE has become a bearer of economic growth and employment and grown into the most dynamic and most efficient segment of the economy of the Republic of Serbia. However, these companies still face many problems in business which is only further underlined by the global financial and economic crisis. The low level of competitiveness of this sector in the Republic of Serbia represents important limit of its future development. The main competitive advantage of every modern company accented in its ability to innovate. The advantage of SMEE, among many others, is reflected in innovation. In general, SMEE due to its flexibility, as well as a homogeneous structure having a good and an important prerequisite to develop innovation and thus enhance market competitiveness. Regarding to their flexibility, it is particularly evident in periods of slow or stagnant economic activity and crises. Therefore, the main direction of development of the SME sector is an innovative approach to real market needs. Providing that, the aim of this paper is to contribute to a clearer understanding of the role and importance of SMEE for economic development of the Republic of Serbia, as well as to point out the importance of improving the competitiveness and innovativeness of this sector bodies for the future economic development of the national economy.
Keywords: SME sector; economic development; competitiveness; innovation
