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Kraljevo, Serbia, 21/02/2019

Law on Public Procurement, expensive and slow procedures obstacle for small and medium enterprises

Meeting of members of BSN Team and managers of local companies was held in Kraljevo today. Present companies were from the metal, machine and wood industry sector are reputable domestic small and medium enterprises with 30 to 40 years of tradition in this part of Serbia.

The occasion for the gathering was a project that BSN is conducting for UNECE (United Nations Economic Council for Europe) whose goals are analysis and removal of barriers in the field of exports / imports.

The companies from Kraljevo have expressed numerous objections to the business environment in Serbia today, with particular reference to the poor Law on Public Procurement and the long duration of court disputes that are causing great damage to domestic companies.

In addition, it was emphasized that the lack of professional staff with the necessary skills began to press the economy of the Raska district, and that out of 100 candidates who apply for certain jobs only 10% have the necessary knowledge, skills and the desire for further professional advancing.

Companies state that business operating conditions are more difficult today than ten years ago, as tax credits for investments have been abolished, property tax has increased over 500% over the past six years, and the number of local taxes and burdens has increased. Also, undeveloped local infrastructure, lack of stable electricity supply and hard and slow payment of claims are biggest challenges for Raska district companies.