In 2023, the competitiveness of small and medium-sized enterprises (SMEs) in Serbia decreased slightly compared to the previous year, according to research conducted by the KOMPAS SME platform, presented today at the Serbian Chamber of Commerce (PKS).
MSP Kompas is an innovative platform that provides an overview of the current situation in SMEs, their performance data, and assesses their needs for sustainable development. The research was organized by the Center for Advanced Economic Studies (CEVES), the USAID project “Big Small Economy,” and PKS.
The platform assesses the competitiveness and development of the SME sector across nine key aspects of business, including business expectations and results, business models, regulatory environments, skills development, digital transformation, and green transition.
According to the findings, there was a real decline in revenue (9.4 percent) and profit (11.9 percent) in 2023, attributed to slow demand in the EU, except for the ICT sector and HORECA (catering). Despite this, 81 percent of companies retained their existing customers but failed to attract new ones.
In 2023, the growth of minimum wages (14.3 percent) and public sector wages (14.7 percent) contributed to increases in the private sector (14.4 percent). However, 77 percent of companies faced challenges in recruiting staff.
External indebtedness decreased by 7.1 percent in 2023, with 19 percent of companies heavily reliant on bank financing.
A significant portion of companies (81 percent) did not invest in capacity expansion in 2023, and 74 percent did not develop new products.
Although labor productivity increased by six percent, it was a slower growth rate compared to wages (14.7 percent).
Only 15 percent of companies planned investments in aspects of the green transition.
Despite the challenges, companies anticipate a better business environment in the coming year, with 10 percent expecting moderate income growth and 2.1 percent not planning to increase their workforce.
Mihailo Vesović, Director of the Sector for Strategic Analysis, Services, and Internationalization at PKS, emphasized the importance of addressing SME challenges through technology assessment, sustainable business strategies, and comprehensive institutional support.
Nemanja Šormaz, Director of CEVES, highlighted MSP Kompas’s role in providing insights into global trends affecting businesses and guiding support programs for the SME sector.
The research covers 11 sectors and 25 official districts of Serbia, with the KOMPAS SME Index compiled from financial reports of over 40,000 companies.
