Title page 1

Contents 8

Foreword 4

Acknowledgements 6

Reader's guide 13

Acronyms and abbreviations 17

Executive summary 20

Serbia: SME definition and data coverage 22

Serbia: SME sector overview 26

1. Assessment findings by policy dimension 34

2. Creating an enabling environment for SMEs and entrepreneurs 99

2.1. Promoting an SME-friendly policy and institutional design 100

2.1.1. Reinforcing regulatory, institutional and policy frameworks for SME lifecycle support 100

2.1.2. Securing systematic, comprehensive and transparent dialogue between policymakers and SMEs 103

2.2. Leveling the playing field for SMEs 106

2.2.1. Tackling informality for a more competitive business environment 106

2.2.2. Protecting and monitoring fair market competition 110

2.2.3. Providing efficient judicial and out-of-court dispute resolution mechanisms 112

2.3. Facilitating access to finance for SMEs' operations and growth 115

2.3.1. Incentivising bank lending to SMEs 115

2.3.2. Providing alternatives to bank finance to SMEs 117

2.3.3. Providing direct financial support to SMEs' operations and growth 120

2.4. Providing services essential to SMEs' operations and growth 126

2.4.1. Foundational SME business support services 127

2.4.2. Support services for SMEs' expansion and growth 128

References 134

3. Fostering SME sustainability and resilience 146

3.1. Harnessing SME agility to navigate global market trends 147

3.1.1. Smoothing SME pathways to a green economy 147

3.1.2. Boosting SME competitiveness in sustainable value chains 150

3.2. Building robust mechanisms for SMEs to prevent and manage crises 153

3.2.1. Enhancing crisis-resilient strategies to prevent SME bankruptcies 154

3.2.2. Increasing SME recovery capacity and second-chance opportunities 155

3.3. Enabling SMEs by providing them with access to sustainable financing solutions 157

3.3.1. Supporting SMEs in an evolving sustainable finance framework 157

3.3.2. Increasing SME access to sustainable (bank and alternative) financing 160

3.4. Strengthening SME support systems and networks for sustainable growth 163

3.4.1. Scaling up public non-financial support for SMEs in a green and resilient economy 164

3.4.2. Exploiting the power of networks for the sustainable growth of SMEs 165

3.5. Accelerating research and innovation to future-proof SMEs 169

3.5.1. Advancing strategic innovation for a green and resilient economy 170

3.5.2. Capitalising on knowledge networks for driving SME innovation 171

Annex 3.A. SME network definition 177

References 178

4. Supporting the Digital Transformation of SMEs in Serbia 185

4.1. Strengthening SME readiness for the digital transformation 186

4.1.1. Strengthening policy and financial support for SME digital transformation 186

4.1.2. Assessing the digital maturity of SMEs in Serbia 190

4.1.3. Enhancing digital skills and capacities 193

4.2. Increasing SME productivity through digitalisation 198

4.3. Leveraging the use of e-commerce and online platforms to drive SME growth 199

4.3.1. Fostering innovation and collaboration for SME productivity 202

4.4. Establishing a trustworthy and safe business environment 207

4.4.1. Adapting data protection to evolving digital threats 207

4.4.2. Strengthening SME cybersecurity resilience 209

4.5. Supporting sustainable uptake of advanced technologies 212

4.5.1. Encouraging SME adoption of artificial intelligence and emerging technologies 213

4.5.2. Promoting a sustainable digital transformation 216

References 222

5. Harnessing human and social capital for SME development in Serbia 228

5.1. Building foundational human capital for SME competitiveness 229

5.1.1. Fostering entrepreneurial skills and mindsets through education 229

5.1.2. Bridging the divide between education and training systems and SMEs 232

5.2. Developing SME workforce knowledge and skills 239

5.2.1. Understanding and anticipating skills needs 240

5.2.2. Addressing skills needs of SMEs through adult education 243

5.2.3. Upskilling to support AI adoption and use 245

5.2.4. Improving talent availability by empowering women entrepreneurs 247

5.3. Strengthening social capital by advancing social entrepreneurship 252

5.3.1. Mapping the social enterprise landscape 252

5.3.2. Creating an enabling environment for social enterprises 253

References 258

Annex A. Methodology 270

Annex B. Western Balkans Business Survey - Navigating the Digital and Green Transition 277

Table 1. Definition of micro, small and medium-sized enterprises in Serbia 22

Table 2. Core statistical sources for the SME sector overview, Serbia 23

Table 3. Statistical data coverage by thematic area, Serbia 24

Table 4. Sectoral profile of the MSME sector in Serbia in selected sectors, 2023 29

Table 5. Key indicators of the MSME sector in Serbia, 2023 and 2021-2023 growth 30

Table 1.1. Serbia's implementation of the SME Policy Index's 2022 recommendations for Dimension 1, Sub-dimension 1.1 37

Table 1.2. Serbia's implementation of the SME Policy Index's 2022 recommendations for Dimension 1, Sub-dimension 1.2 38

Table 1.3. Serbia's implementation of the SME Policy Index's 2022 recommendations for Dimension 2, Sub-dimension 2.1 40

Table 1.4. Serbia's implementation of the SME Policy Index's 2022 recommendations for Dimension 2, Sub-dimension 2.2 41

Table 1.5. Serbia's implementation of the SME Policy Index's 2022 recommendations for Dimension 2, Sub-dimension 2.3 42

Table 1.6. Serbia's implementation of the SME Policy Index's 2022 recommendations for Dimension 3, Sub-dimension 3.1 44

Table 1.7. Serbia's implementation of the SME Policy Index's 2022 recommendations for Dimension 3, Sub-dimension 3.2 46

Table 1.8. Serbia's implementation of the SME Policy Index's 2022 recommendations for Dimension 3, Sub-dimension 3.3 47

Table 1.9. Serbia's implementation of the SME Policy Index's 2022 recommendations for Dimension 4, Sub-dimension 4.1 49

Table 1.10. Serbia's implementation of the SME Policy Index's 2022 recommendations for Dimension 4, Sub-dimension 4.3 50

Table 1.11. Serbia's implementation of the SME Policy Index's 2022 recommendations for Dimension 4, Sub-dimension 4.4 51

Table 1.12. Serbia's implementation of the SME Policy Index's 2022 recommendations for Dimension 5a, Sub-dimension 5a.1 54

Table 1.13. Serbia's implementation of the SME Policy Index's 2022 recommendations for Dimension 5a, Sub-dimension 5a.2 55

Table 1.14. Serbia's implementation of the SME Policy Index's 2022 recommendations for Dimension 5b 58

Table 1.15. Serbia's implementation of the SME Policy Index's 2022 recommendations for Dimension 6, Sub-dimension 6.1 61

Table 1.16. Serbia's implementation of the SME Policy Index's 2022 recommendations for Dimension 6, Sub-dimension 6.2 63

Table 1.17. Serbia's implementation of the SME Policy Index's 2022 recommendations for Dimension 6, Dimension 6.3 63

Table 1.18. Serbia's implementation of the SME Policy Index's 2022 recommendation for Dimension 7, Sub-dimension 7.1 65

Table 1.19. Serbia's implementation of the SME Policy Index's 2022 recommendation for Dimension 7, Sub-dimension 7.2 66

Table 1.20. Serbia's implementation of the SME Policy Index's 2022 recommendations for Dimension 7, Sub-dimension 7.3 67

Table 1.21. Serbia's implementation of the SME Policy Index's 2022 recommendations for Dimension 8a 70

Table 1.22. Serbia's implementation of the SME Policy Index's 2022 recommendation for Dimension 8b, Sub-dimension 8b.1 72

Table 1.23. Serbia's implementation of the SME Policy Index's 2022 recommendation for Dimension 8b, Sub-dimension 8b.3 74

Table 1.24. Serbia's implementation of the SME Policy Index's 2022 recommendations for Dimension 9, Sub-dimension 9.1 77

Table 1.25. Serbia's implementation of the SME Policy Index's 2022 recommendations for Dimension 9, Sub-dimension 9.2 79

Table 1.26. Serbia's implementation of the SME Policy Index's 2022 recommendation for Dimension 10, Sub-dimension 10.2 83

Table 1.27. Serbia's implementation of the SME Policy Index's 2022 recommendation for Dimension 10, Sub-dimension 10.3 85

Table 2.1. List of main active credit guarantee schemes supporting SME access to bank finance in Serbia, 2026 117

Table 2.2. Venture capital funds created with the support of the Innovation Fund in Serbia 119

Table 2.3. Overview of main active programmes providing targeted funding to SMEs in Serbia, 2026 121

Table 3.1. Serbia's strategic and policy frameworks for SME greening 148

Table 4.1. Serbia's strategic policy frameworks relevant for SME digitalisation and digital transformation 187

Table 4.2. Overview of Serbia's financial instruments for SME digital transformation 189

Table 4.3. Serbia's strategic and policy frameworks considering SMEs and their uptake of emerging technologies 214

Table 5.1. Frameworks covering entrepreneurial learning in Serbia 230

Table 5.2. Regulatory framework guiding dual vocational education and training in Serbia 234

Table 5.3. Key provisions of the Guide to Dual Education for Companies 235

Table 5.4. Outcome indicators of the Youth Guarantee scheme in Serbia, 1 January-30 September 2025 237

Table 5.5. Overview of strategic approaches to skills intelligence in Serbia 241

Table 5.6. Selected upskilling programmes for artificial intelligence in Serbia 246

Table 5.7. Key strategic documents promoting women entrepreneurship in Serbia 247

Table 5.8. Selected programmes facilitating women entrepreneurs' access to finance in Serbia 249

Table 5.9. Gaps between legal provisions and implementation for social enterprises in Serbia 254

Table 5.10. Initiatives supporting visibility and market access for social enterprises in Serbia 255

Boxes 11

Box 1.1. Spotlight: The SME HUB: Serbia's flagship non-financial support platform 54

Box 1.2. Supporting contracting authorities in implementing sustainable and innovative procurement 59

Box 1.3. Spotlight: A roadmap to better help Serbian SMEs align with the Green Agenda 78

Box 1.4. Spotlight: Institutional support for SME export readiness: The Responsible Business Hub 82

Box 1.5. Spotlight: The Innovation Fund's Mini Grants and Matching Grants Programs supporting SME digital transformation 88

Box 2.1. Good practice example: Introducing digitalisation of case management in Latvia through the Insolvency Register 106

Box 2.2. Spotlight: Serbia's Strategy for Countering the Informal Economy 2023-2025 108

Box 2.3. Good practice example: Promoting access to finance and investments in the green transition in Finland 126

Box 2.4. Good practice example: From fragmented support to diagnostic-led service delivery - Thailand's Regional Integrated SME Promotion... 132

Box 2.5. Good practice example: From fragmented advice to a national platform - Poland's accreditation and database for SME services 133

Box 3.1. Spotlight: Serbia's Responsible Business Hub 152

Box 3.2. Spotlight: Serbia's Ministry of Economy's sustainable finance programmes for SMEs 159

Box 3.3. Good practice example: EU Platform on Sustainable Finance 163

Box 3.4. Spotlight: Integrating Serbia's SMEs in international supply chain networks 167

Box 3.5. Good practice example: India-Sweden Innovations' Accelerator Programme 169

Box 3.6. Spotlight: Serbia's Green Program of Cooperation between Science and Industry 173

Box 3.7. Good practice example: Korea's SME-focussed Eco-Industrial Park 175

Box 3.8. Good practice example: Portugal's Mobilising Agendas - connecting business and academia for sustainable innovation 176

Box 4.1. Spotlight: CDT's Digital Transformation Support Programme for SMEs 196

Box 4.2. Good practice example: Scaling SME digital and managerial skills through integrated acceleration programmes - France 198

Box 4.3. Spotlight: The Digital Serbia Initiative 201

Box 4.4. Spotlight: Capital Innovation Point Serbia (CIPS): Scaling SME Digital Transformation Across Sectors 203

Box 4.5. Good practice example: Operationalising harmonised e-commerce rules through the e-commerce centre in Denmark 206

Box 4.6. Good practice example: Building SME cybersecurity capacity through training and vouchers: The United States' Cybersecurity for... 212

Box 4.7. Good practice example: Germany - Accelerating SME AI adoption through compute access, applied testbeds and workforce engagement 220

Box 4.8. Good practice example: Digital & Sustainability Maturity Assessment (DMA) for SMEs - Mexico 221

Box 5.1. Spotlight: Supporting girls in STEM through the Girls Go Circular programme in Serbia 232

Box 5.2. Spotlight: Making dual vocational education and training work for SMEs in Serbia 236

Box 5.3. Good practice example: Embedding EntreComp in practice in Portugal 238

Box 5.4. Good practice example: Encouraging participation in adult learning via the SME e-wallet in Belgium 251

Box 5.5. Spotlight: Empowering women through social entrepreneurship in Serbia 253

Box 5.6. Good practice examples: Assessing legal framework performance in the EU 257

Table A A.1. Changes to the weights of thematic blocks 274

Table A A.2. Clusters and constituent policy dimensions 275

Table A B.1. SME target population in Western Balkans and Türkiye, 2025 277

Table A B.2. Western Balkans Business Survey: Navigating the Digital and Green Transition - Sections and subsections 278

Table A B.3. SME respondent sample in the Western Balkans and Türkiye, 2025 279