To encourage entrepreneurs to remain in rural areas, Serbia’s Ministry of Rural Affairs has launched a program to promote economic activities in villages. Interest in the scheme far exceeded expectations, with five times more applications than the available funds, highlighting strong demand for such support.
One beneficiary, Saša Vasić from Mrčkovac in the Golubac municipality, received a grant of 500,000 dinars to buy a plasticizing machine for electrostatic paint application. He said the modern equipment will make production faster, more efficient, and cost-effective. Without the subsidy, he would have had to delay the purchase for years.
The ministry said the program follows the successful revitalization of cooperatives and focuses on opening small businesses such as family workshops, shops, and service providers. Launched late last year, it has so far reached 14 municipalities, distributing up to 3.6 million dinars each to support nearly 100 entrepreneurs.
A total of 72 local governments responded to the first call, but with only 50 million dinars available, demand greatly outstripped supply. Officials say the initiative also benefits local communities by creating jobs, boosting supply, and increasing tax revenues.
The program primarily supports trades like carpentry, textiles, plumbing, metal and stone processing, food processing, and catering. Beneficiaries must keep and use the purchased equipment for at least five years and may not sell or lease it. Compliance is monitored by local governments and the ministry, with penalties for violations, including repayment of funds.
Eligibility criteria require entrepreneurs to be Serbian citizens, resident in the country for at least three years, registered with the Tax Administration by the end of 2023, and free of unpaid public revenue obligations. They must not have received state aid exceeding 23 million dinars over the past three years and cannot be connected to the equipment supplier from whom they are purchasing.
