Strategies of the Development of Entrepreneurship and SME

accounting standards, including medium enterprises, as well as private individuals registeringdouble accounting. Small enterprises and entrepreneurs may, but do not have to be obliged toregistering according to international accounting standards. From the aspect of SME sector, theintroduction of obligatory auditing for medium enterprises is important ,while the control offinancial operations of small enterprises and entrepreneurs will be under the supervision of TaxAuthority.The Law on Mortgage fastens the market development and makes the access tofinancial sources easier, as the mortgage is the most common way of secured loan in ourconditions and which are necessary for financing the business operationsBy the Law on Competitiveness Protection the Council on competitivenessprotection was founded, which main task is to promote the struggle against monopoly andmonopoly behaviour. The penalties, regulated by the law, for monopoly behaviour (up to 10%of realized total annual income) should affect the strengthening of SME,s market position.The Law on Foreign Trade Operations offers the solutions for national and foreigntrade equalization and methods for national economy protection from disloyal foreigncompetition.The Law on Free Trade Zones creates the conditions for bringing the foreign directinvestments, higher employment level, and development of undeveloped or insufficientlydeveloped regions. The main advantages of operations in free trade zones are duty-free andtax-free, aimed at strengthening the national economy competitiveness.The modifications of Law on Contributions for Obligatory Social Insurance andthe Law on Citizens Income Tax enabled the fiscal disburdenment of all tax payers andselective employment stimulation along with the protection of most vulnerable old-agepopulation and social groups. The employment of young people up to 30, older than 45, that is,50 years old, handicapped was especially encouraged. The tax-free deadline for farmers hasbeen extended.The Law on Enterprise Profit Tax defines the tax rates of 10% on an enterprise profit and18% of VAT, which are among the lowest in Europe, but the effects are devaluated by other taxduties, various taxes, and administrative procedures.Table 12. contents list of some measures of business regulations and their enforcement relatedto Serbian economy:Table 12.YearEaseofDoingBusinessRankRankStarting a BusinessProcedures(number)Time (days)Cost (% ofincome percapita)Min. capital (%of income percapita)Dealing with LicensesRankProcedures(number)Time (days)Cost (% ofincome percapita)2007 86 90 11 23 8.9 8 149 20 204 2,713.1056