The economy of Montenegro is relatively small, with a population of around 650,000 inhabitants, which is distributed in the territory of 13,812 km/2. The country is rich in natural resources (bauxite, coal, wood), and it is important to note the significant hydrological potential, as well as a favorable climate for the development of agriculture and tourism. Its overall economic development is based primarily on the openness of the economy and the development of regional trade, including the creation of a favorable business environment.
In addition to substantial foreign investment, development of entrepreneurship and small and medium enterprises is the backbone of development of Montenegro. Development of small and medium enterprises (SMEs) contributes to the growth of gross domestic product, creating new jobs and reducing unemployment. At the same time, reducing the dependence on imports and increasing the overall competitiveness of the economy. SMEs are a source of innovation and significantly contribute to more balanced regional development of the country. The importance of SMEs is best illustrated by the example of the European Union within whose borders are about 20 million enterprises, of which 99% are those in the category of small and medium-sized, and create over 750 million jobs. These enterprises account for 70% of total turnover and create 60% of the gross domestic product of the EU. In the absence of large healthy companies, SMEs in Montenegro gain further importance, so it is very important to create the overall business environment that will encourage individuals-entrepreneurs to opt for doing business.
Since its founding, IPER is committed to improving the business environment in Montenegro. We do this through regular analysis of the most significant barriers to entrepreneurship development in Montenegro, and proposals to policymakers in order to improve the overall business environment.