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Abstract

Development of strong and competitive sector of small and medium enterprises has very important role in process of total transition in Republic of Serbia. This sector should be one of the guidelines of economical development in the future, like in developed countries. Within the ²Strategy of development of SME and entrepreneurship in Republic of Serbia from 2003 to 2008² government of the Republic of Serbia, not accidentally, placed, among many other sectors (which are expected to contribute and boost economical development, increase the employment rate, and realize increased foreign export earnings), the sector of agricultural products processing. It can be concluded that significant contribution from agriculture to improvement of overall economic status is expected. Accession to EU should be considered not only as the opportunity, but also as a serious task in agriculture restructuring. However, aggravating circumstance, in regard to export of agricultural and food products, first of all to EU countries, is the fact that this market is under strict protective measures within the policy of agriculture and measures of agrarian protectionism. In such conditions, it is very difficult for producers and food processors to enter such closed markets. Considering the flexibility of small and medium enterprises with regard to production programs, as well as their capability to adjust to economical trends, it can be expected that they become one of the most important subjects of support of agribusiness development in Republic of Serbia.

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