NALED: Over half of business people think that business environment in Serbia is bad

More than a half (54%) of businesses in Serbia find the conditions for doing business poorly, but around 30% believe they have been improved over the past year, particularly in the field of countering unfair competition – a NALED survey shows.

In cooperation with Ipsos Strategic Marketing and with the support of German Development Cooperation, NALED surveyed 252 businesses over a period from 18 December 2018 to 24 January 2019. 

Half of the surveyed businesses said they generated higher revenues in 2018 than in the previous year. Twice more businesses than in 2017 pointed out that the conditions for doing business improved in the previous year, while a half said that there was no change and a quarter that conditions were worse.

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“The introduction of e-government and e-commerce continues to be the area where the greatest progress has been achieved in the previous year,” Ivan Radak, NALED’s PR, said at a press conference.

According to the surveyed businesses, every fifth company in Serbia operates in the shadow economy. Over three-quarters of business people believe that the size of the shadow economy has decreased in the past year, both in their respective businesses and in Serbia in general, which represents a significantly higher percentage than in December 2017 (68 per cent).

“Construction is highlighted as an area that is rife with shadow economy. According to the surveyed business people, the shadow economy is quite prevalent in commerce, catering, and legal services,” said Radak.

He added that high taxes and contributions on salaries are thought to be the main driving forces behind the shadow economy, and to a much greater extent compared to December 2017. Other reasons cited are o a lack of financial resources and favourable loans, parafiscal charges and hidden taxes fees.

The biggest damage caused by the competitors’ business by shadow economy is reduced prices due to unfair competition, and to a lesser extent, the decline in turnover and the difficulty of marketing products.

(Beta,, 25.03.2019)


This post is also available in: Italiano

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