The Transformation of SMEs as a Driver of Change in Serbia’s Business Ecosystem
Small and medium-sized enterprises (SMEs) in Serbia are increasingly seeking ways to enhance their operations and establish long-term partnerships with larger companies. For the past year, SME HUB has been supporting such businesses, helping them become competitive suppliers by enhancing their organisational capacities, business processes, and standards. The results achieved over the past year and those to come are reflected in the experiences of companies participating in this initiative, as well as plans to expand the support network.
Aleksandar Goračinov, Director of SME HUB, says that from the outset, the initiative has been focused on tangible results – strengthening the capacities of small and medium-sized enterprises so they can become reliable partners to large companies. “From the very beginning, we set clear objectives – to provide adequate expert support to domestic firms, enabling them to strengthen their capacities and integrate into global supply chains,” he emphasises.
Through a detailed analysis of needs, tailored development plans, and targeted support in professionalising management, financial management, human resources, production processes, certification, and compliance with international standards, SME HUB helps businesses enhance their competitiveness. “The first step in this process is understanding where companies currently stand and what they need to reach the next level of development,” Goračinov adds.
The results so far confirm the effectiveness of this approach – domestic companies that have undergone SME HUB’s transformation are already making significant strides in cooperation with large firms. In its second year, the programme aims to support 15 more companies, with the ultimate goal of guiding a total of 80 enterprises through the initiative. These businesses will acquire the necessary knowledge, resources, and business opportunities to foster sustainable growth and development. “It is essential for small and medium-sized enterprises to recognize that this is not a one-time intervention, but a long-term process, integral to a broader strategy for sustained development,” Goračinov emphasizes.
One of the most valuable lessons the SME HUB team shares from experience is a systematic approach to business development, with a focus on precision, quality, efficiency, and long-term planning. A team of experts with extensive experience in the business sector, together with carefully selected consultants, helps domestic companies optimise business processes, introduce necessary modernisation, and strengthen organisational capacities. “Sometimes, the key challenge is changing the mindset – adapting operations to the standards of large companies can be demanding, but it brings long-term benefits,” says Goračinov.
In the coming period, SME HUB will continue to expand its network of supported small and medium-sized enterprises, focusing on sectors with the highest potential for collaboration with large companies, such as the food and chemical industries, metal processing, and plastic processing, among others. Aleksandar Goračinov also highlights a unique aspect of the SME HUB initiative—the call for applications for grant funding is permanently open. “An open call means that businesses can apply whenever they are ready and when they identify the need for support,” Goračinov explains.
After a year of operation, the results are already visible, and the number of domestic companies entering the programme continues to grow. In the latest cycle, five new companies have begun their business transformation process, bringing the total to 14 small and medium-sized enterprises that have either completed or just started the programme. The latest participants include companies from the cosmetics industry, food production, aluminium and PVC joinery, roller shutter manufacturing, and IT sales. “Their connection with large companies opens up new markets and enables the development of innovative products,” he notes.
Sometimes, the key challenge is changing the mindset – adapting operations to the standards of large companies can be demanding, but it brings long-term benefits
The total value of support for these new companies exceeds 600,000 Swiss francs and includes a range of services to assist in their business transformation, such as management, finance, ERP, legal, and HR services. After implementing the support, they are expected to achieve significant revenue growth, with estimates suggesting an increase of more than 35% in the coming period. “These results confirm the importance of the SME HUB initiative as a key mechanism for enhancing the capacities of small and medium-sized enterprises and integrating them into the value chains of large companies,” Goračinov concludes.
SME HUB is a public-private partnership initiative of the Swiss Agency for Development and Cooperation (SDC) and the Serbian company ICT HUB, providing support to domestic businesses in strengthening their organisational capacities and competitiveness.