Incentives for small companies as opportunity to create new jobs

“The Year of Entrepreneurship” started with the state approving incentives for small companies planning to hire new workers. They are now eligible to receive 75% tax return. Entrepreneurs salute this measure but warn that there are many other problems they are facing. The Serbian Chamber of Commerce (SCC) points out that parafiscal charges and finding funding pose the two biggest problems, because there are no alternatives to banks when it comes to financing.

Aleksandar Gračanac, from the SCC’s SME and Entrepreneurship Committee, says that the state grants 75% tax return if a company hires at least two new people. “This is a step that can certainly boost employment”, Gračanac says. The incentive is both welcome and critised for not being long-term and guaranteed, for that matter. Entrepreneurs also suggest that the state should also permanently reduce taxes.

“Income tax stands at 63% which is far too much for SMEs. I think it should be in the region of 30%. It is sufficient enough for a third of an income to go to the state budget and for the rest to go to employees”, Director of the NAG Company, Aleksandra Popović thinks.

The problems that small business owners have been facing don’t end taxes alone and these problems cannot be solved with a single incentive. Aleksandar Gračanac from the Serbian Chamber of Commerce thinks that the biggest problem in entrepreneurship is funding the private sector and very few available alternative sources of funding, aside from banks.

“On the other hand, there are many parafiscal fees and high operating costs. Small business owners often talk about the problem of providing financial support for start-ups”, Gračanac outlines.

Are at least one of these problems in this Year of Entrepeneurship, as 2016 is called, going to be solved_ The government says ‘yes’. The recently formed Council for Small and Medium Enterprises, made out of ministers, representatives of state institutions and business community, is supposed to do that. Following the first session of the Council, which took place in July last year, and the second, which took place today, they only thing that was done was a press release which states an intention to promote entrepreneurship through change of legislation.

(RTS, 02.02.2016)

This post is also available in: Italiano

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