Regional drivers of economic growth

Abstract

Regional development of Serbia, after waves of recession, faced an additional challenge: a trend of increasing regional demographic regression, economic gap, etc. Entrepreneurs and SME sector are particularly hit hard by the economic crisis. But, in addition, in Serbia there are 1.2% rapidly growing enterprises (1,103, of which 160 gazelles) that boast growth potential (before the crisis, there were 3%). These are the drivers of regional economic growth. The basic research results of the regional dynamic entrepreneurship: 1,103 dynamic enterprises (2009-2013) participated in the increase in business revenues of Serbia with 110.5% (these enterprises covered 10.5% of the loss of the remaining segment of economy), generated 1/3 of profit growth in the economy and created 10,000 new jobs in the economy. Regional driving forces of growth and development had, in a certain number of regions, an extremely important role in the change of economic structure, increase in employment, and improvement in competitive performances of local economic structures. Economic recommendations presented in the paper go in two directions: firstly, it is vital to set up additional stimulating mechanisms for dynamic regional entrepreneurs in order to create conditions conducive to a faster growth of dynamic entrepreneurship in Serbia. Secondly, a way out of regional poverty will depend mostly on the building of institutions and affirmation of regional strategic planning.