This work focuses on the development of small and medium enterprises (SME) in Serbia and the effect globalization has on its growth, as well as correlation between the development of small and medium enterprises (SME) and commerce rise. The goal is to improve and create national conscience about the importance of development of the small and medium enterprises (SME). Small and medium enterprises (SME) are considered to be one of the leading guidelines of the economical growth. It stimulates private ownership and entrepreneurship skills, since this area is flexible and can quickly adjust to market changes. This is generated by employment, creation of diversified economical activity and contributes to export and trade and is the basic factors of development of competitive economy. It is obvious that the internationalization and creating global network of small and medium enterprises (SME) presents the focus for future research of development of entrepreneurship in the EU. Innovative capacities for small and medium enterprises (SME) are modest and usually represent local values. By creating international networks the obvious misbalanced between potential partners disappears, by which we open the possibilities for greater achievements and successful international partnership which provides small and medium enterprises (SME) with bigger chances in the EU system of public procurement. In contemporary conditions small and medium enterprises (SME) represent the combination of the innovative, proactive and risky behavior which exceeds national borders and tends to create certain values in the organizations, since they appear more often as the suppliers in the big production systems. Development of privately owned entrepreneurship in Serbia – country born from one of the Yugoslavia ex republics, in the present transitional economy does not differs much from the other countries in the Southeastern Europe. As society we are at the historical milestone in determining our own future. So the key question is: how can we set the concept of future development which would lead us to higher productivity of our companies, their inner and outer competitiveness by using entrepreneurship and knowledge as the most important resources. In the last few years, there has been a vast group of activities in the line of developing business environment in Serbia. SME is recognized as one of the major growth priorities. In that sense, we can say that their perspective is quite certain. We only have to bear in mind that this is a process which in many aspects requires a certain period of time.