Abstract

Staff restructuring at public companies (an estimated 40% of Serbia’s 132,000 employees in public companies were made redundant in 2005) has a twofold impact: it raises the unemployment rate that is already worryingly high (34.7%) and it potentially creates new businesses with low sustainability prospects in the first three years as they are unprepared for long-term market positioning and high fiscal (73%) and parafiscal charges. The established practice of paying severance packages has failed to resolve the problem of unemployment in the long term, so good experiences of transition countries should be taken into account. In that sense, this study focuses on business incubators within public companies, aimed at staff restructuring, corporate entrepreneurship as an instrument of support to the creation of new businesses within the existing public companies, the orientation phase of corporate entrepreneurship among surplus labor, the possibility of supporting future entrepreneurs among surplus labor by providing them with repaired equipment and capacities, storage facilities, and raw materials needed by new businesses, and the creation of a risk capital fund for the insurance of loans and investments in the development of new capacities/skills of workers who will be made redundant.

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