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Abstract
Agriculture is branch of economy of special importance to the economy of the
Republic of Serbia since it creates approximately 20% of gross national product
and has realistic potentials for increase of production volume and processing of
agricultural products. Economical potential of agriculture imposes the need for
analysis of small and medium entrepreneurship which should be carrier of future
development of agribusiness. Cluster analysis is method to determine how the
municipalities in the Republic of Serbia are grouped according to the level of
development of small and medium agribusinesses. Also, in this way we get insight
into current condition of regional development of this sector as well as possibility
for development of least developed municipalities in Serbia.