how competitive are serbian smes?
TRANSCRIPT
Do we know whom to support and how to support them?
Private Sector
Competitiveness and
Growth:
About the research
Background: Serbia must jump-start growth if it is to increase the economic welfare of its citizens
• Economic growth should be sustainable, inclusive and smart
• Export - an integral role as the locomotive of such growth
• Strategy - proactive and systematic approach to private sector strengthening and competitiveness enhancement
Main goal: Identification of the most promising industries, with a potential to drive sustainable export-led growth
Purpose: To motivate policymakers to look for various actions whose implementation would adequately support the most promising industries
Comprehensiveness, complexity and
diversity of approach and methodology
Our analysis covers:
70.000 firms
90 industries
800 exporting products
31 most important foreign markets
5 post-crisis years (2009-2013)
It does not include:
– Export of services (unreliable and/or unavailable data)
– Entrepreneurs that do not report to SBRA (unavailable data)
Understanding the capacities, strengths, and
advantages of the industries
• The most promising industries in Serbia are those that provide necessary resources to firms in order for them to:
1. Produce internationally competitive products:
• Export Volume (RCA)
• Export Growth (Competitiveness Effect)
• Export Diversification (# of Products and # of Markets)
• Export Complexity (Atlas of Complexity)
2. Achieve dynamic and sustainable growth, which increases the welfare of the main stakeholders – owners, employees and state
• Demand growth (CAGR of Revenues)
• Comprehensiveness (Rate of Success)
• Productivity (Labor Productivity)
• Profitability (EBITDA Margin)
Export Competitiveness Analysis
Overall Performance Analysis
Competitiveness of Serbia’s economy
is increasing ...
... but overall recovery has been
slow and partial
• Slow recovery from the crisis strike - annual growth of revenueswas 5%
• Labor Productivity increased, but it is still relatively low (40% of EU27 productivity)
• Overall profitability stood at solid 8%
• Only one in four firms can be considered successful in post-crisis period
• Development was driven by minority of industries and large companies within them
• The tertiary sector is dominant among the best performing industries
Performance-Competitiveness Matrix – tool for
identification and selection of promising industries
The Best Performing Industries
in post-crisis period
Industry # of Firms
Performance
Rank
(Tradable
Industries)
Performance
Rank (Total)
Competitiveness
Rank
Extraction Of Crude Petroleum 2 1 1 11Agrochemical Products 13 8 18 26
Motor Vehicles 23 3 7 1Pharmaceutical Products 35 5 14 19
Rubber Products 60 7 16 9Electric Power 61 21 36 2
Prepared Meals And Animal Feeds 196 11 21 10Beverages 211 24 39 32
Manufacture Of Paints, Varnishes, Soap 312 17 32 31Perennial Crops 325 19 34 23
General Purpose Machinery 372 18 33 15Electrical Equipment 411 25 41 3
Other Manufacturing 431 20 35 8Mining Of Metal Ores 554 4 9 6
Plastic Products 767 6 15 7Clothes 795 22 37 4
Paper And Paper Products 1,339 13 27 14Fabricated Metal Products 1,704 15 29 13
Highly concentrated industries cannot be
considered suitable for SME development
Level Industry HHI Index
HIG
H
Manufacture Of Motor Vehicles 9,564
Extraction Of Crude Petroleum And Natural Gas 9,301
Mining Of Metal Ores 7,302
Mining Of Coal And Lignite 6,744
Manufacture Of Tobacco Products 6,676
Air Transport 6,446
Postal And Courier Activities 6,389
Financial Service Activities 5,462
State Administration And Social Insurance 4,580
Manufacture Of Pharmaceutical Products 3,857
Manufacture Of Iron and Steel 3,832
Manufacture Of Agrochemical Products 3,771
Manufacture Of Rubber Products 3,588
Forestry And Logging 3,531
Manufacture Of Coke And Refined Petroleum Products 3,210
Telecommunications 2,684
MED
IUM
Manufacture Of Precious Metals 2,459
Manufacture Of Basic Chemicals 2,397
Manufacture Of Vegetable And Animal Oils And Fats 2,357
Manufacture And Distribution Of Gas and Steam 1,982
Sport, Entertaintment And Recreational Activities 1,892
Information Service Acivities 1,767
Electric Power Generation And Distribution 1,600
Membership Organizations 1,514
Competitive industries - very suitable
for SME development
What’s next?
Industry-level
analysis
Creating targeted sectorial
support, that will remove, or
at least minimize the most
binding constraints and untie
untapped potential for growth
of competitive industries
Analysis of foreign
markets
Strengthening the
economic ties between
Serbia and attractive, but
insufficiently exploited
foreign markets
Firm-level analysis
Identifying and addressing
critical factors of success of
firms’ in Serbia’s economy
Effective Support to
Serbia’s Exports
Thank you for your
attention
Full Report available on this address