SME sector as a growth factor of employment in Serbia

Lazarević-Moravčević, Marija and Pantić, Olivera and Filimonović, Dragan (2015) SME sector as a growth factor of employment in Serbia. In: New еconomic policy reforms. Belgrade Banking Academy, Belgrade, pp. 466-475. ISBN 978-86-7852-036-5

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Abstract

Unemployment is the biggest economic and social problem facing the economy of Serbia. Its chronic presence causes a decrease in gross domestic product (GDP) and undermines social stability and quality of life. Given the fact that numerous social, economic, demographic and political problems emerge as the results of its effects, tackling of high unemployment requires a combination of different policies and strategies. One of the ways to lower unemployment in Serbia is creation of a business environment that stimulates entrepreneurship development encouraging in such a way formation of small and medium-sized enterprises. Taking into account that potential of SME sector in Serbia is not fully used, the goal of this paper is to identify the main barriers that hinder the development of entrepreneurship and due to its great presence prevent more significant contribution of SMEs to employment growth.

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