Contemplating a new destination for your business in 2024? Think of the business opportunities you will enjoy in Serbia! In recent years, the country has seen great economic strides. Reforms have lowered the national debt and drawn foreign capital, which has boosted small and medium-sized enterprises.
This news may surprise some, but not those who follow Serbia closely. An improved business climate in the country and wide opportunities for those who want to start or expand their business in Serbia turn the jurisdiction into a promising market for business people concentrated on growth and expansion.
Incentives and opportunities in Serbia
One of the primary draws for businesses in Serbia is the low labor cost. With an average monthly salary of USD 500, Serbia is highly competitive compared to other European countries, particularly those in the eastern-central part of the EU. However, cost-effectiveness is not the sole factor. The fact that the workforce in Serbia is known for its skills, and English proficiency is widespread, adds to the country’s business appeal.
Moreover, Serbia has made multiple free trade agreements all across the world. This additional driver of investment appeal promoted deals with such significant players as the European Union, Turkey, and the USA, among others. The above agreements cover a vast population exceeding 1 billion, which makes Serbia an excellent base for companies looking to export products or services.
Infrastructure development is another aspect that enhances Serbia’s attractiveness. Sitting in the heart of the Balkans and bordered by multiple European states, Serbia plays a pivotal role in regional transportation networks. The country has invested significantly in improving its transport and communication infrastructures, with highways, railways, airports, ports, and broadband networks among them This not only makes Serbia more accessible but also efficiently connects it to the rest of Europe and the global market.
Serbia’s commitment to quality is evident in the high number of ISO 9001-certified companies. This certification, a standard for quality management systems, demonstrates the dedication of Serbian companies to meeting customer expectations and complying with legal requirements. For foreign partners and investors, this commitment adds confidence and credibility when they contemplate doing business with Serbian partners.
With a high penetration rate of Internet users, reaching around 80% of the population in 2020, Serbia is a tech-savvy market. This implies multiple opportunities for businesses offering online services or products, as they have a chance to tap into online shopping, banking, education, and entertainment. The prevalence of Internet usage makes Serbia an advantageous destination for companies aiming to utilize online platforms for brand promotion and customer communication.
It is through various public incentives that Serbia sweetens the deal for foreign businesses. These include tax exemptions, subsidies, grants, and loans. For instance, companies that hire more than 100 employees and invest over EUR 8.5 million may benefit from a 10-year tax holiday on corporate profit. Special incentives are available for investments in priority sectors like IT, agriculture, tourism, energy, and environmental protection.
At the crossroads of major trade routes, Serbia uses its location as a crucial asset. With proximity to the EU market, which boasts over 500 million consumers, as well as growing markets in Turkey and the Middle East, Serbia is a hub for businesses that strive to access and capitalize on these markets.
Top business ideas to pursue in Serbia in 2024
However, let’s get straight to the meat as you obviously would like to know what industries deserve the most attention from the investment standpoint. Well, this is what some of the most promising business ideas in Serbia are in 2024:
- Email Automation Platform: Here, we are talking about a solution to streamline and optimize email marketing efforts, saving businesses time and money. Skylead, a successful Serbian example, illustrates the potential in this field.
- Catering Business: The catering industry is flourishing in Serbia in 2024, catering to the increasing demand for convenient and high-quality food options for various events. Need an example? Catering Beograd may well serve as one.
- Textile Manufacturing Business: Serbia’s well-developed textile industry, accounting for about 10% of the country’s exports, comes with abundant opportunities for businesses producing fabrics, garments, and accessories. Your motivation may be spurred by Yumco, a leading company that specializes in uniforms, protective clothing, and medical textiles.
- Beverage Company: The lively culture of drinking and socializing in Serbia makes the beverage industry both promising and profitable. In this context, meet Nektar. This successful Serbian company earns its money by producing and selling natural fruit juices, nectars, and carbonated drinks.
The above examples perfectly illustrate how diverse business opportunities are in Serbia in 2024. The country’s potential, coupled with its ongoing commitment to reforms and business-friendly policies, makes it a fertile ground for entrepreneurs and investors ready for challenges and abundant opportunities on offer.
Behind the promise: challenges and strategies for businesses in Serbia
Being a candidate for EU membership, Serbia is a promising business destination in 2024 with a growing economy and a skilled workforce. However, launching a business in Serbia requires careful planning due to the challenges the country faces.
The macroeconomic and business environment in the country is heavily influenced by the EU integration process, geopolitical tensions, and environmental issues. Impacting demand, supply, trade, investment, and fiscal policies, these factors necessitate a keen understanding of the risks involved for business success.
Despite recent improvements, the business environment in Serbia still requires further reforms. In 2023, Serbia ranked 44th out of 190 economies in the World Bank’s Ease of Doing Business Index, up from 48th in 2020. Here, we can’t but mention the areas that need attention. They include the protection of minority investors, enforcement of contracts, resolution of insolvency, and tax payment procedures.
Beyond regulations, building trust with local partners, employees, and customers is vital for your business’ success. Serbian business culture values personal and professional relationships, emphasizing honesty, respect, and feedback. Although it may take you time to establish trust, the resulting long-term loyalty and cooperation will be invaluable for sustained business growth in the years to come.
If you are ready to start your business in Serbia or want to apply for residency, contact Serbia Wealth experts today! We will answer all your questions and offer any assistance you may need.
