Ljumović, Isidora and Zubović, Jovan (2016) Entrepreneur or employee: a choice in a small open developing economy. In: Leadership and organization development : International scientific conference leadership and organization development,. University Publishing House "St. Kliment Ohridski", Sofia, pp. 962-968. ISBN 978-954-07-4129-1
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Abstract
The choice to be an entrepreneur or employee is relatively new phenomena for the former
socialist and communist countries that went through the process of transitions, mass privatization and
restructuring. The first perquisite that enabled this choice were structural changes and reform measures. On the
other hand, privatization, restructuring or shutting down the enterprises with socially owned capital left number
of people jobless. This created a space for the development of entrepreneurial sector, where former employees
could create job for themselves, but also could employ other people and create new jobs. During the period of
transition new segment, of small and medium private enterprises and entrepreneurs, that emerged was supposed
to be one of the main drivers for economic growth and development in Serbia. Unfortunately, policy makers
missed an opportunity to create a sustainable and favourable business environment that would stimulate and
foster entrepreneurial spirit in transitional years.
Stable macroeconomic environment is essential perquisite for favourable business environment, boosting
entrepreneurial spirit and developing the SMEs segment. Unfortunately, the business environment in Serbia is
not favourable and is characterized by high unemployment, high level and constant growth of external and public
debt, low level of investment and slow level of recovery from the economic crisis. On the other hand starting a
business has a lot of obstacle. Bureaucracy is complicated, no enough sources of finance are available for startups
and existing companies and also there are a lot of fiscal and para-fiscal burdens.
The labour market in Serbia is underdeveloped with low labour mobility, devastated transition downturn
in conditions of political instability, wars and economic sanctions. Since the beginning of the transition, the
employment rate is falling, but on the other hand the number of people employed in the public sector is rising
(with the exception of the last year and the program of downsizing in public sector). This led to the paradox that
the average wages in the private sector are lower than in the public administration, while terms and conditions
are harder. Having this in mind, a trend of aspiration towards employment in public sector is identified in Serbia.
Job is relatively easier than in the private sector, wages and conditions are better. However, it is necessary to
mention that the last downsizing in public sector brought uncertainty in this segment also. The most optimistic
estimates are that during 2015 and 2016 the number of employees will be reduced by 20 percent in the public
sector. Having in mind all this it is not surprising that the option of being an entrepreneur gains importance.
| Item Type: | Book Section |
|---|---|
| Additional Information: | COBISS.ID=512402018 |
| Uncontrolled Keywords: | entrepreneurship, employment, transition |
| Research Department: | Welfare Economics |
| Depositing User: | Jelena Banovic |
| Date Deposited: | 24 Feb 2017 10:53 |
| Last Modified: | 09 Jun 2020 12:25 |
| URI: | http://35.240.28.64/id/eprint/1032 |
| Author Links: |
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