Although statistics show that partnerships are more likely to survive than businesses founded by individuals, their number in Serbia is steadily decreasing. By the end of last year, only 611 partnership companies were registered in the country.
While half of the businesses started by individuals fail within three years, two out of three newly established partnerships survive. Despite the advantages of this form of business—such as shared responsibilities and lower initial capital requirements—fewer people are choosing it. The main reason is a lack of trust among partners.
According to the Serbian Business Registers Agency, the number of partnership companies has dropped by 149 over the last three years. In 2022, only four new partnerships were founded, while 71 were closed, leaving 760 at the end of the year. The trend continued in 2023 with 62 closures, and in 2024, 49 more partnerships were closed with only one new establishment, resulting in 611 partnerships at the end of 2024.
Nebojša Atanacković, honorary president of the Serbian Employers’ Union, believes that partnerships are an outdated form of business. He points out that partners are jointly responsible with all their assets, decision-making is often unclear, and there are more attractive organizational structures available today.
The primary reason for forming a partnership is usually a lack of funds to start a business independently. However, without proper planning, conflicts are almost inevitable. Daniel Đerfi, a butcher and small food producer, shared his negative experience. He served as a partner without providing capital, which created disputes over contributions and responsibilities. He eventually left the partnership, secured his own property and loan, and learned valuable lessons.
Common pitfalls in partnerships include insufficient knowledge of partners, conflicts over financial goals, unclear role distribution and management, disagreements over profit sharing, damage to reputation by a partner, and client poaching.
