Serbia’s SMEs and Exports The Serbian SME Conference Belgrade October 2003 Project “Non Financial Assistance to SMEs in Serbia”

A presentation in two parts: 1. The Enterprise and Exports 2. The State and Exports Exports and SMEs Project “Non Financial Assistance to SMEs in Serbia”

1. The Enterprise and Exports 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 Project “Non Financial Assistance to SMEs in Serbia”

1. The Enterprise and Exports Why export? 2 Reasons for exporting: lack of growth opportunities in the Serbian market not enough customers in Serbia for existing products Project “Non Financial Assistance to SMEs in Serbia”

1. The Enterprise and Exports The major steps identifying opportunities selecting the market entering the market Identifying opportunities Selecting the market Entering the market

1. The Enterprise and Exports Identify opportunities 1.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 Project “Non Financial Assistance to SMEs in Serbia”

1. The Enterprise and Exports 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 Project “Non Financial Assistance to SMEs in Serbia”

1. The Enterprise and Exports Entering the market Who will sell the product in the new market and how will it be sold or distributed? Agents/distributors Direct selling Project “Non Financial Assistance to SMEs in Serbia”

1. The Enterprise and Exports 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

1. The Enterprise and Exports 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 Assistance to SMEs in Serbia”

1. The Enterprise and Exports Export issues Promotion of product Pricing Transport and transit insurance Export credit – international trade risks Export finance Risk management Project “Non Financial Assistance to SMEs in Serbia”

Part 2 The State and Exports International SME Conference Belgrade October 2003 Project “Non Financial Assistance to SMEs in Serbia”

2. The State and Exports 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 Project “Non Financial Assistance to SMEs in Serbia”

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 Project “Non Financial Assistance to SMEs in Serbia”

2. The State and Exports 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 Project “Non Financial Assistance to SMEs in Serbia”

2. The State and Exports 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” Project “Non Financial Assistance to SMEs in Serbia”

2. The State and Exports 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 Project “Non Financial Assistance to SMEs in Serbia”