<abstract xmlns="http://www.w3.org/1999/xhtml"><p> The results of numerous investigations carried out show that the sector of small and medium-sized enterprises and entrepreneurship (SMEEs) 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, SMEEs 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 an important limitation of its future development. The main competitive advantage of every modern company accented in its ability to innovate. The advantage of SMEEs, among many others, is reflected in innovation. In general, SMEEs due to their flexibility, as well as a homogeneous structure having a good and an important prerequisite to develop innovation and thus enhance market competitiveness. Regarding 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 SMEEs 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.</p></abstract>

The results of numerous investigations carried out show that the sector of small and medium-sized enterprises and entrepreneurship (SMEEs) 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, SMEEs 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 an important limitation of its future development. The main competitive advantage of every modern company accented in its ability to innovate. The advantage of SMEEs, among many others, is reflected in innovation. In general, SMEEs due to their flexibility, as well as a homogeneous structure having a good and an important prerequisite to develop innovation and thus enhance market competitiveness. Regarding 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 SMEEs 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.

The Importance of Improving The Competitiveness of The SMEEs for Development of The Economy of Republic of Serbia

University of Niš, Faculty of Economics, Serbia

Economic Themes

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

The results of numerous investigations carried out show that the sector of small and medium-sized enterprises and entrepreneurship (SMEEs) represent a...

The Importance of Improving The Competitiveness of The SMEEs for Development of The Economy of Republic of Serbia

Published Online: Apr 15, 2016

Page range: 247 - 266

Received: Feb 13, 2015

Accepted: Jun 26, 2015

DOI: https://doi.org/10.1515/ethemes-2015-0014

Keywords
SMEEs sector, economic development, competitiveness, innovation

© 2016

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

The Importance of Improving The Competitiveness of The SMEEs for Development of The Economy of Republic of Serbia

Published Online: Apr 15, 2016

Page range: 247 - 266

Received: Feb 13, 2015

Accepted: Jun 26, 2015

DOI: https://doi.org/10.1515/ethemes-2015-0014

KeywordsSMEEs sector, economic development, competitiveness, innovation

© 2016

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Keywords
SMEEs sector, economic development, competitiveness, innovation