Dynamic Entrepreneurship – The Engine Of Economic Growth And Development In Serbia

In Serbia, there are around 3% of fast-growing enterprises that boast a growth potential. The results of research into dynamic entrepreneurship in Serbia have promoted a new methodological approach that has confrmed the well-known Birch's rule that at least 85% of economic growth and creation of new jobs in any economy is generated by, at most, 5% of enterprises. Given that in Serbia less than 3% of enterprises generate economic growth, fast-growing enterprises and gazelles present an economic buffer from economic recession. Major research fndings are as follows: 2,583 fast-growing enterprises accounted for 90% of the growth of gross value added of Serbia in the period 2006-2010, 114% of the growth of business revenues (they covered 14% of the loss generated by the rest of the economy!); they also contributed to the growth of overall income and the creation of 33,000 new jobs. The rate of growth of value added of 500 dynamic enterprises in manufacturing industry was 100% in 5 years! Employment in 300 Serbian gazelles (most dynamic enterprises) doubled! Economic recommendations presented in the paper follow two directions: frstly, given that the SME sector is particularly hardly hit by the economic crisis, it is vital to create additional stimulating mechanisms for entrepreneurs so that production could be triggered and employment decline prevented. Secondly, it is necessary to defne a set of measures in order to create conditions conducive to a faster growth of dynamic entrepreneurship in Serbia. Key words: dynamic entrepreneurship, economic growth, compe­titiveness of the SME sector, business environment, risks