Strategies of the Development of Entrepreneurship and SME

are private pension funds, broker houses, as well as insurance companies and banks that areactively including into investment banking transactions.Start-up loans, provided by the Development Fund, are intended for self employment byestablishing handcrafts, manufactures or service enterprises. Start-ups are provided with Euro5,000 to Euro 15,000 loan, one-year pay off period, one-year grace period, 1% interest rate onannual level and three-month pay off. According to National Investment Plan, beginners will beprovided with Euro 7 million.3.4.6. TASKS FOR IMPROVEMENT AND FURTHER DEVELOPMENT OF SME SECTORSBy the number of entrepreneurs and small and medium enterprises, Serbia considerablydelays comparing with the other countries in the region. Because of that, the promotion ofentrepreneurship and small and medium business is essential. The great chance could be thefurther development of the business incubators, and technologic and industrial parks, wherelegal regulative and some very successful examples already exist. Also, the entrepreneursshould be acquainted with the importance of clustering and possibilities which this form ofcooperation offers. They also should be informed about the distribution of stimulating measuresfor cluster foundation. Lower costs, favorable credits, funds access are only some of theadvantages that this form of cooperation offers.Simultaneously, together with promotional activities, the particular attention should bepaid on entrepreneurs’ education and to extend the knowledge and skills gamma necessary forthe new circumstances. The higher level of knowledge and efficiency in SME is essential. Thelevel of knowledge and efficiency of entrepreneurs are far behind the real necessities. Thegreatest improvement in overcoming this state was realized by introduction of education forentrepreneurs in secondary schools in 2007/2008, but further efforts in this field are veryimportant especially regarding the cooperation between the scientific institutions and economy.The relations between economy, education and scientific and research institutions should bedefined on completely new foundation.Further investment in researches, development and improvement of technologicalequipment is needed.The lack of horizontal connection and establishing of cooperation among theorganizations which offer services to SME sector, such as Agency for SME, NationalEmployment Service, Chamber of Commerce, is obvious.It is important to extend the rank of the alternative financing sources. To developventure capital firms, private equity funds, business angels etc. Also, it is important to solvethe question of micro-financing, which, for the time being, only exists within the bankingsector. The banking sector still has the monopoly on financial market. The specializedinstitutions for micro crediting should be founded.Measures directed to restrain the inflation and to create the less restrictive NationalBank’s credit and monetary policy, that would influence on reducing the interest rate on bankcreditsThe tax system is not adjusted to SME. Although the tax rate for enterprise profit of10% and VAT of 18% are among the lowest in Europe, their stimulating effects are devaluatedby another burden with taxation, various fees, and administrative procedures. Modifications ofcertain legal regulative, especially in the field of fiscal legislative and fiscal collectionprocedure’s simplification.64