We were raised on stories of the former Yugoslavia, a country that produced everything, "from apples to zippers," and did so with exceptional quality. Or better yet—from bridges around the world to the Aswan Dam; from air filters for Mercedes in Aleksinac to the legendary Golfs from Sarajevo and Peugeots from Priština; from Levi Strauss in Varaždin to Lee Cooper in Beko. An 'Iskra' phone was once officially recognized as the best in the world—you can see it at the Museum of Modern Art in New York. But let’s not get too bogged down in nostalgia.
And that wasn’t all that long ago. Are we really incapable of achieving similar feats today? Can we still create high-quality products, components, and semi-finished goods for global players and make a bigger impact in major markets? Of course, we can. It's not like anyone is asking us to build supersonic jets—yet. However, becoming more competitive, empowering our entrepreneurs to take on a larger role in the value chain, and doing so in collaboration with global companies—that’s definitely within our reach.
At ICT Hub, we’re launching something new. It’s a fresh concept. Let me begin with the essentials, as they’re important—we’ll dive into the details later.
Large domestic and multinational companies operating in Serbia (and we at ICT Hub know them, and they know us) would greatly benefit from having reliable local suppliers who meet all required standards. We’ll identify their needs and specifications, and then locate suitable suppliers among domestic small and medium producers. We’re not expecting it to be a “perfect fit” from the start. That’s the point—it doesn’t need to be. We’ll identify which particular small businesses need to evolve to be the ideal match for specific large companies, and we’ll help them transform. The funds and expertise are in place. Ultimately, the large companies will have perfect suppliers, while our entrepreneurs will become partners with global players. It’s a win-win—everyone grows together: the companies, the economy, and the citizens.
The project mentioned above is the SME Hub, an initiative we’re implementing at ICT Hub with the support of the Swiss Government, represented by the Swiss Agency for Development and Cooperation (SDC). Shortly thereafter, OTP Bank, our long-time partner and a pioneer in many areas, joined us as well.
If small and medium enterprises are the backbone of the economy..
We don’t need to elaborate on how small and medium enterprises (SMEs) are a vital part of any economy, ours included. In Serbia, there are around 400,000 of them. They make up 98% of all businesses, providing jobs for two-thirds of the workforce. Yet, their contribution to GDP is under a third.
Why? That’s not easy to answer. This vicious circle involves more than just economic issues—mindset and (lack of) entrepreneurial drive, the absence of competitiveness, and the lack of mechanisms for small and medium businesses to enter value chains. There’s also an aging population, young people leaving, declining birth rates... and all of these factors, in turn, influence mentality and entrepreneurial spirit.
There is data showing that the Gross Value Added (GVA) per employee in our country is significantly lower than in the EU, and that the productivity of our entrepreneurs is three and a half times lower than in the EU. Does that sound disheartening? Maybe, but to me, it suggests that there’s a huge opportunity to make significant progress with even small improvements.
We’ve all heard the mantra that small and medium enterprises are the backbone of every economy. It's said because they are supposed to “carry” it. Let’s be real—if our SME sector is the backbone, it may not need surgery, but it could certainly benefit from thoughtful physical therapy and targeted exercises. To straighten us up and help us carry the economy further, and better.
What do we need to make that happen?
In fact, we already have everything we need. Large domestic and multinational companies in Serbia that are interested in high-quality, reliable local suppliers? No problem, we have them, and of course, they’re interested. Producers across different industries eager to produce for big players, adhering to their standards? Sure, but—do we have producers who are actually capable of meeting those standards?
Who are trained, equipped, and able to follow through? It’s fine—they’ll adapt, learn, and transform their businesses if necessary. Knowledge is essential here. But has knowledge ever been a barrier? Whatever we lack, we’ll find. Transformation requires funding—so where will it come from? For those who are committed, funding will be accessible. The remaining question is—who will tie it all together?
The SME Hub is a one-of-a-kind initiative. We already know the large companies and work closely with many of them. The entrepreneurial ecosystem is well known to us—we have connections everywhere. Our goal is to improve the business operations, skills, and capacities of SMEs to ensure they are equipped for collaboration with both domestic and international companies operating in Serbia.
The idea is clear and to the point.
This is crucial! We’re addressing specific issues, strategic partnerships, and existing business needs—not vague transformations or consulting advice that leaves entrepreneurs trying to convince banks, funds, and clients they’ve learned something. Picture a business that’s already there, just waiting to have its needs met. It may not be that simple, but it’s highly realistic.
We’re talking about domestic entrepreneurs who are willing to learn, adjust, scale up their capacities, employ, and train people. We’re also talking about sources of financing, access to larger, more profitable, and stable markets, and accelerated growth with clearly defined key factors. Ultimately, we’re talking about higher salaries and better working conditions. And when we mention the high standards of large companies, we’re also referring to a smaller environmental footprint. All good things, right?
Who benefits from this initiative?
Large companies gain high-quality local suppliers of components for further production and export, meeting their needs and defined criteria. The supply chain and delivery times are shorter. There's less reliance on foreign parts, and the risk of value chain disruptions is minimized (remember the pandemic?).
Domestic SMEs gain the opportunity to partner with large companies. They expand their business, improve production, and strengthen their capacities. They get support for transformation through knowledge and resources from project partners. They become more competitive, better prepared for growth, and participate in the exchange of knowledge, technologies, and best practices.
The Serbian economy gains a more powerful SME sector, creating more jobs and contributing significantly to GDP. It gains a stronger "backbone." Multinational companies are more focused on local resources. They become 'good hosts' that stimulate the local market and improve the country’s business environment. If a large company previously imported semi-finished products or components from abroad but now sources them locally, it's a direct boost to the economy.
And if this becomes more widespread, the chances grow that we’ll start talking differently about young people leaving, as well as about birth rates and mentality.
What is happening now, and what comes next?
At ICT Hub, we’ve started connecting companies, interested parties, and experts. Next, we’ll map out the needs of multinational and large domestic companies. Then comes the scouting phase. We’ll open applications with specific criteria, followed by selection, diagnostics, and the creation of transformation plans. We’ll provide support throughout the process, including helping secure access to financing. Once a Serbian company signs a partnership agreement with a multinational or large local company, it’s a done deal.
Let’s change what really matters, together. To evolve, become more competitive, and grow. At ICT Hub, that’s our guiding principle in everything we do. This time, it’s manufacturers from the small and medium-sized sector. We believe it’s important for all of us, and we truly believe in domestic entrepreneurs—we have every reason to. What do you think of the idea?
