MUNICIPAL STRATEGY OF SME ENTERPRISES IN PUBLISHED BOOK

11.01.2010.

After the opening the Center for Entrepreneurship in Palilula Municipality, that was opened within the LEDIB programme, with financial help of Danish government, during the ending of the last year the promotion of Strategy for development of small and medium enterprises 2009-2013` was promoted.

Text of this document is the result of many months joint work of the members of multidisciple commission. The strategy of SMEs, projected by the authorities of the Municipality, was adopted the councilors of Palilula Assembly. This is the second published strategy that, after the bringing of `Strategic analyses -strategic developmental plan` in 2008, clearly defined the vision of the development of the Palilula Municipality all the way to 2013. This `blue` edition of the book was printed in 500 copies.

Today in the world, as one of the pillars of economic development, it is recognized the sector of small and medium  enterprises and entrepreneurship (SMEE). European commission elaborated the Scope type of programme for competitiveness and innovatory for the period 2007-2013 with the focus on the sector to SMEEs. Many countries in the Region have their national strategies of this sector and have already harmonized with named Programme and among them is now Serbia. National strategic document in this area is Strategy of development of competitive and innovative small and medium enterprises for the period of 2008 to 2013. All these documents were the basis for the elaboration of Strategic plan in Palilula Municipality for the period 2009-2013. All with systematical LEDIB organization and cooperation within the partnership of the Municipality and this organization we approached to the elaboration of this Strategy. In December 2008 the Annex of Memo on understanding between the municipalities of Nis Region and LEDIB was signed, by which officially we went to project realization of `Strengthening Nis Region municipal capacities`. One of the final results of this project is also this sector type of Strategy.

To reach the conditions and other necessary pre-conditions for the Strategy elaboration, Palilula Municipality brought the Decision on June 18 2009 on starting of Strategy elaboration, formed one working group for its preparation and actively participated in all the phases of Project realization. During this 11th meeting (end of October 2009), the Assembly of Palilula Municipality adopted the strategy of development of small and medium enterprises and entrepreneurship, by which it became its official document. This significant plan document is published in the book we are promoting hereby:

The contents of this publication has eight chapters in 130 pages. After the Introductory word of PhD Igor Novakovic, president of Palilula Municipality, the general facts about Municipality were given including all possible and available potentials. `Part of small and medium enterprises in the economy of Palilula Municipality grows in year. The economy of Palilula Municipality has all the characteristics of transitional economy, characterized by the domination of small and medium  enterprises in private ownership. The biggest potential for economic growth of Palilula Municipality are already present small and medium enterprises, that have stable production and that can with additional impulses to make bigger the production range and open new work posts`-emphasized the president. `The development of modern entrepreneurship and SMEE is one of the priorities of the strategy of our local economic development`.

In the chapter called `Indicators` the economic development of the Municipality was taken into account including proximate gross amount of working active people, the employment rate, the degree of Municipal debt, population structure, education and life quality. The state of life environment is viewed in the part of delay and structure of waste and possibilities of recycling.  In the chapter named `Economic development-economy, entrepreneurship, tourism` over SWOT analyses, the weakness, strengths, chances and treats of further development of this local self government organization were taken into account. The powers and strenghts of Palilula are: its human resources expressed in qualified and experienced professionals, good geographic position and infrastructural connection with significant traffic roads, oriented activity of local government toward solving of real problems of citizens and support to economic Municipal development, flexible SME sector capable for development in accordance with the needs of the market and modern trends.

As weakness, that can influence the development of the Municipality, stated are: old equipment of production capabilities of SME, lack of information of SME about the modern tendencies and business standards, insufficient education of agricultural producers about modern ways of agricultural production,  parted and small agricultural areas, not registered areas and unregulated ownership relations for production type of land, insufficient developed infrastructure as precondition of the development and foreign investments, insufficiently developed production-processing sector of SME.

Chances for the development of the Municipality are: traffic corridors and good geographic position, existing of potentials and attracting greenfield and brownfield investments, funds of European Union and the Republic of Serbia, creating of good business climate in the City, development of primary and secondary agricultural production.

Threats for this plan not to be realized are: lack of impulse in the form of crediting and grant type of financial resources; insufficient developed regulations aiming at stimulating economy development; competitiveness of other regions with similar potentials, centralized economical policy, instable political situation, unsolved property-legal relations, strong `gray economy`.

In the statement of VISION of the SMEE sector it is written: Palilula Municipality is economically developed community that within its authorizations continuously work on the improvement of good business climate, supports present and the opening of new SMEE, connecting and associations of SMEE, increasing the number of work posts and public private partnerships.

In the part of defining priorities, aims, programmes and projects it is stated that:

Improvement of functioning of municipal administration for the work with SMEE sector, entrepreneurship development in Palilula Municipality with countinuous support to small and medium enterprises and support to foundation and work of new small and medium enterprises; improvement of economical infrastructure in the territory of the Municipality.

In the finishing part of the Strategy, in the chapter for monitoring and evaluation, the main stakeholders are given for the following and evaluation of the Strategy of SME of Palilula Municipality, and in the eight chapter, Action plan of activity dynamics is given.