serbia’s smes and exports the serbian sme conference belgrade october 2003 project “non...

Serbia’s SMEs and Exports

The Serbian SME Conference

Belgrade

October 2003

Project “Non Financial Project “Non Financial Assistance to SMEs in Serbia”Assistance to SMEs in Serbia”

A presentation in two parts:

1. The Enterprise and Exports

2. The State and Exports

Exports and SMEs



Why export? 1

Objectives in exporting:

• to increase sales and profitability

• to utilise production capacity to the full

• to achieve greater business security by spreading risks over a number of markets



Why export? 2

Reasons for exporting:

• lack of growth opportunities in the Serbian market

• not enough customers in Serbia for existing products



The major steps

• identifying opportunities• selecting the market• entering the market • Identifying opportunities

• Selecting the market

• Entering the market


Identify opportunities1. Desk/field research in a manageable

number of markets: e.g Balkans

2. Information needed: size of market, import statistics, local economic data, regulations and approvals e.g. health, import licenses and tariffs, list of agents and importers

3. Information sources: SIEPA, SME Regional Agencies, Chambers, EICC



Selecting export markets

• Concentrate on a few markets

• Choose a market where there is enough

potential to justify the effort

• Choose a market where product may have some competitive advantage – price, performance, quality

• Make sure the business can be handled



Entering the market

Who will sell the product in the new

market and how will it be sold or

distributed?

• Agents/distributors

• Direct selling



The agent

• Identify, short-list, select, make contact, negotiate and agree

• Is the agent interested in the product and of good reputation?

• Agent needs to believe that product will be successful and to have confidence in efficiency and reliability of producer

• Producer supports work of agent


Direct selling

• Supply the customer directly and manage all contacts directly

• Open sales/administrative office in the export market

• Selling by Internet

Project “Non Financial Project “Non Financial Assistance to SMEs in SerbiaAssistance to SMEs in Serbia””


Export issues

• Promotion of product

• Pricing

• Transport and transit insurance

• Export credit – international trade risks

• Export finance

• Risk management


Part 2The State and Exports

International SME Conference

Belgrade

October 2003



Serbia needs more exports

Serbia needs a strong export sector to:

• reduce a large foreign trade deficit

• absorb existing unused production capacity in a small domestic market

• add to national wealth and employment

• improve competitiveness and quality of enterprises and products


2. The State and Exports Barriers to SME exports

• Lack of finance and insurance facilities• Inadequate information and research on

potential export markets• No technical assistance for quality,

standards and design• Trade barriers • Inadequate institutional support for SME

export development and promotion



Policy priorities

• Promotional support for main markets

• Information and advisory services

• Developing export capabilities of competitive SMEs

• Export finance and insurance

• Quality assurance scheme

• Donor assistance for trade promotion



New services for exporters

• SIEPA’s Export Department is being strengthened and a EU funded technical assistance programme has commenced

• Main role of SIEPA Export Department “Promotion of Serbian goods and services in foreign markets”



Support for SME export capabilities

• USAID Serbian Enterprise Development project supports exports by client SMEs

• A network of Regional SME Agencies, provides direct advisory, information and training services to SMEs

• Capabilities of SME services providers being improved through various projects


serbia’s smes and exports the serbian sme conference belgrade october 2003 project “non...

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