Small and Medium Enterprise (SME) development is one of the key factors in the process of European Integration of Serbia. SMEs are significant source of business relations with other European countries and significantly help the process of integration of Serbia into the broader European economic framework. The European Union (EU) pays particular attention to the development of SMEs and the European Commission in the June 2008 adopted a special document entitled “Small Business Act for Europe” which establishes the principles and actions for the activities in the SME sector in EU countries. Purpose of this essay is to stress on the importance of SME development in Serbia as the engine of economic development with special emphasis on agribusiness in transition period in the process of European integration of Serbia.


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