Strategies of the Development of Entrepreneurship and SME
Strategies of the Development of Entrepreneurship and SME
Strategies of the Development of Entrepreneurship and SME
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accounting st<strong>and</strong>ards, including medium enterprises, as well as private individuals registeringdouble accounting. Small enterprises <strong>and</strong> entrepreneurs may, but do not have to be obliged toregistering according to international accounting st<strong>and</strong>ards. From <strong>the</strong> aspect <strong>of</strong> <strong>SME</strong> sector, <strong>the</strong>introduction <strong>of</strong> obligatory auditing for medium enterprises is important ,while <strong>the</strong> control <strong>of</strong>financial operations <strong>of</strong> small enterprises <strong>and</strong> entrepreneurs will be under <strong>the</strong> supervision <strong>of</strong> TaxAuthority.The Law on Mortgage fastens <strong>the</strong> market development <strong>and</strong> makes <strong>the</strong> access t<strong>of</strong>inancial sources easier, as <strong>the</strong> mortgage is <strong>the</strong> most common way <strong>of</strong> secured loan in ourconditions <strong>and</strong> which are necessary for financing <strong>the</strong> business operationsBy <strong>the</strong> Law on Competitiveness Protection <strong>the</strong> Council on competitivenessprotection was founded, which main task is to promote <strong>the</strong> struggle against monopoly <strong>and</strong>monopoly behaviour. The penalties, regulated by <strong>the</strong> law, for monopoly behaviour (up to 10%<strong>of</strong> realized total annual income) should affect <strong>the</strong> streng<strong>the</strong>ning <strong>of</strong> <strong>SME</strong>,s market position.The Law on Foreign Trade Operations <strong>of</strong>fers <strong>the</strong> solutions for national <strong>and</strong> foreigntrade equalization <strong>and</strong> methods for national economy protection from disloyal foreigncompetition.The Law on Free Trade Zones creates <strong>the</strong> conditions for bringing <strong>the</strong> foreign directinvestments, higher employment level, <strong>and</strong> development <strong>of</strong> undeveloped or insufficientlydeveloped regions. The main advantages <strong>of</strong> operations in free trade zones are duty-free <strong>and</strong>tax-free, aimed at streng<strong>the</strong>ning <strong>the</strong> national economy competitiveness.The modifications <strong>of</strong> Law on Contributions for Obligatory Social Insurance <strong>and</strong><strong>the</strong> Law on Citizens Income Tax enabled <strong>the</strong> fiscal disburdenment <strong>of</strong> all tax payers <strong>and</strong>selective employment stimulation along with <strong>the</strong> protection <strong>of</strong> most vulnerable old-agepopulation <strong>and</strong> social groups. The employment <strong>of</strong> young people up to 30, older than 45, that is,50 years old, h<strong>and</strong>icapped was especially encouraged. The tax-free deadline for farmers hasbeen extended.The Law on Enterprise Pr<strong>of</strong>it Tax defines <strong>the</strong> tax rates <strong>of</strong> 10% on an enterprise pr<strong>of</strong>it <strong>and</strong>18% <strong>of</strong> VAT, which are among <strong>the</strong> lowest in Europe, but <strong>the</strong> effects are devaluated by o<strong>the</strong>r taxduties, various taxes, <strong>and</strong> administrative procedures.Table 12. contents list <strong>of</strong> some measures <strong>of</strong> business regulations <strong>and</strong> <strong>the</strong>ir enforcement relatedto Serbian economy:Table 12.YearEase<strong>of</strong>DoingBusinessRankRankStarting a BusinessProcedures(number)Time (days)Cost (% <strong>of</strong>income percapita)Min. capital (%<strong>of</strong> income percapita)Dealing with LicensesRankProcedures(number)Time (days)Cost (% <strong>of</strong>income percapita)2007 86 90 11 23 8.9 8 149 20 204 2,713.1056