Domestic companies in Serbia have reached only the halfway point in applying digital tools in their operations, according to the first comprehensive Digital Development Index of Serbia. This index, created through a joint project between RNIDS and Plum Mark, is now available on the index.srb portal, offering Serbian entrepreneurs a way to evaluate how digitally advanced their businesses are compared to others in the country.
Despite frequent claims that the business world has fully transitioned online, the situation in Serbia paints a different picture. Over 200,000 business entities, including 190,000 entrepreneurs and approximately 25,000 companies, still lack their own websites, representing around 45% of the Serbian economy.
This gap highlights the need for more widespread digitalization, which was discussed in detail at this year’s DIDS conference by Predrag Milićević, marketing and communications advisor at RNIDS, and Nikola Jovanović, director of Plum Mark. They shared insights into the current state of digitalization in Serbia and explained the development of the Digital Development Index.
What is the Digital Development Index?
The Digital Development Index measures how Serbian companies use digital technologies, with factors such as website ownership, email usage, social media presence, and online payment adoption. Predrag Milićević emphasized that the methodology behind the index is objective, using actual digital tools used by businesses rather than relying on subjective opinions from business owners.
“The index isn’t based on business owners’ perceptions of how well their digital presence compares to others; it’s based on real data showing what tools they use and how they apply them,” said Milićević. For example, the index places more weight on owning a business website than on having a Facebook page or using a chatbot.
Key findings from the index
The results of the index revealed a clear distinction between businesses that genuinely use digital tools and those that merely use them superficially. For instance, 64% of companies with a website do not use it to promote their products or services, and 79% use social media primarily for communication. Facebook remains the most popular platform for businesses, with 80% of companies using it, while only 31% use LinkedIn, a critical platform for business networking.
The overall Digital Development Index for Serbia stands at 46.97 out of a possible 100. The highest-rated parameter in the index is the possession of a website, which accounts for 20 points. Other businesses indicators, such as email domain usage and social media engagement, also contribute to the score.
Differences between business types
The index shows significant variation based on company characteristics. Businesses that have been operating for 3 to 10 years tend to score higher, while newer businesses score much lower. Companies in the manufacturing sector (50.82) outperform those in services (44.11), and businesses operating internationally score higher (58.26) compared to those focused only on the domestic market. Large companies have an index of 59.13, while individual entrepreneurs have a much lower score of 36.55.
Tools for improvement and progress
Despite these disparities, the Digital Development Index of Serbia offers a valuable tool for Serbian entrepreneurs. Business owners can visit the index.srb portal, complete a simple 14-question survey, and receive their business’s digital index score. The portal also provides tailored advice and educational content for businesses looking to improve their digital presence in specific areas.
The goal is to periodically update the Digital Development Index, offering new insights into the country’s digital progress, with plans for future research to track improvements both nationally and regionally.
By using the Digital Development Index, Serbian businesses can measure their “digital pulse” and take action to close the gap in digital adoption, ensuring they stay competitive in an increasingly online world.
