Subotica Case Study

1. What was the goal of establishing Business Incubator Subotica?

The goal of the Incubator is to support the businesses so that they can become medium-sized companies and increase employment and self-employment of young people and entrepreneurs in Subotica and its neighborhood.

2. What is the success of start-up companies from the beginning to today?

        The state-level data indicated that the establishing process for SMEs has been successful and has even increased over the last 15 years. In 1990, about 20,000 SMEs were registered in Serbia, and this number almost tripled by 2000, amounting to about 60,000 SMEs. The number continued to grow, reaching 69,000 SMEs in 2004.

3. What are the role and the characteristics of business incubators and clusters?

        Business incubators accelerate the development of successful entrepreneurial companies by providing hands-on assistance and a variety of business and technical support services during their vulnerable early years. Typically, incubators provide space for a number of businesses under one roof with flexible space and leases; office services and equipment on a pay-as-you-go basis; an on-site incubator manager as a resource for business advice; orchestrated exposure to a network of outside business and technical consultants; accounting, marketing, engineering, and design expertise; assistance with financing; and opportunities to network and transact business with other firms in the same facility. Incubators reduce the risk involved in a business start-up and their young tenant companies by providing access to facilities and equipment that might otherwise be unavailable or unaffordable. Differences in stakeholder objectives for incubators, admission and exit criteria, the knowledge intensity of projects, and the precise configuration of facilities and services distinguish one business incubator from another.

4. What is the impact of business incubators and clusters in Serbia?

        Setting up business incubators in a particular place usually boosts the economic development of the entire region, since they attract new investments and are considered to be economic growth engines. Also, they can create specialized knowledge centers and increase production based on the competitive advantage they focus on.

5. Can a building of networks be a powerful tool for multiplying the power of small enterprisers?

        Yes. In order to improve the coordination of work and represent the common interests of business incubators in Vojvodina, each will be connected to a common association as well as with other national and international organizations and associations. This process should develop a partner network of business incubators and local authorities, financial institutions and other sources of funding, educational institutions, research organizations, and other companies. Facilitation of the information exchange of founders within the individual incubators of Vojvodina, as well as across Serbia, needs to be initiated. In addition, the incubators’ alumni need to be involved to a greater extent and networked. As a result, knowledge and know-how can be transferred from experienced business people to start-up ventures and potential entrepreneurs.