Young entrepreneurs in Montenegro are facing a numerous procedures while starting a business registration. Among the biggest barriers set apart long business registration process and undefined grants for financial support, assessed at a panel discussion of Administrative Barriers. The panel discussion was held in EU info Center in Podgorica.
The moderator of panel discussion, Merima Dzaferovic a candidate for master degree in sociology at University of Istanbul, emphasized that Government of Montenegro has made a tremendous effort in last ten years; new institutions have been opened and new projects for young entrepreneurs through they would get a financial support.
She said that the administrative barriers in the form of complicated procedures and fees are so high that they are given a levy status. This was the critic from the Employers Union. The entrepreneurs in Montenegro noticed that the work of the inspections does not have its own preemptive framework.
According to her, all this is the reason for pushing entrepreneurs into gray zone or into corrupt behavior.
President and founder of the Union of Young Entrepreneurs of Montenegro, Uros Bulatovic, said that young entrepreneurs are hampered by numerous procedures in achieving goals, promoting products and services while entering into new markets.
Bulatovic said that few things have been digitized and little can be done from the office. It happens that young people consult with all relevant institutions and inspectors before establishing a company and after a month or two they got fined. And then problems are found which at the moment will be a great attack for business.
At the panel discussion, entitled ‘Administrative Barriers that young entrepreneurs in Montenegro meet’, he said there is still a lot of room for improvement in this area. He also mentioned the state needs to determine what are the priorities and to draft laws and procedures according to them.
Director of the Institute for Entrepreneurship and Economic Development (IPER), Dragana Radevic, said that she started working at the institutions 20 years ago as an interviewer on the project for dealing with barriers in business. Since then the situation has not change much.
She believes that we will always have administrative barriers. It is like one balloon you toss on one side it goes on the other. But the situation has significantly improved because nowadays you can register your company in four days and important documents can be downloaded from the sites of relevant institutions.
She also conveyed that in the European Union (EU) entrepreneurs are given a second chance while in Montenegro it is believed that as soon as one failed in business once immediately means that it has failed forever.
An independent adviser to the Directorate for Investment, Development of Small and Medium Enterprises and Management of EU Funds in the Ministry of Economy, Ana Sebek, said that the government’s department is listening to the private sector and business associations.
Sincular Consulting CEO and former Deputy Prime Minister and Minister of Public Administration of Slovenia, Boris Koprivnikar, said that no country, not even Slovenia, had solved the problem of bureaucracy.
Koprivnikar claims that bureaucracy is not evil, but it serves to enforce existing regulations. The most important is state coordination because as an entrepreneur he is interested in what papers he should possess and what taxes he has to pay. The worst thing for an entrepreneur is when something new comes along. He said that he started his business, he did not go anywhere but did everything online. It takes him two hours a month to sort out all bureaucracy. He believes that on the other hand every country must find direction for development, whether it is tourism, digital economy or something else because, as he says, Europe will not determine it.
Commenting on the fact that corruption is often cited as a mean of completing certain jobs and procedures in public sector, Koprivnikar said that transparency is the best tool against corruption.
He said: ”Everything is known, who does what, there are laws and deadlines and you do not have to point out anyone with your finger to finish something.” He said that in Slovenia they have a problem who will work in public sector while in Montenegro there is a problem that everyone wants to work in that administration.
The CEO of Montenegro Business Alliance (MBA), Milan Dragic, said that the association is preventive and gives constructive criticism. He mentioned the problem of private sector which gets involved in other this pretty much late. He added that some problems are related to business start – up financing, deadlines and extensive documentation. Dragic said:’Young entrepreneurs are very important to us, because there is always a need for new blood in economy and young people bring numerous novelties. He mentioned that efficiency if the administration is not so much a problem.
Dragic concluded: ‘ There are platforms and numerous public sector training but when we have a problem that some server, when needed, does not work we have to physically carry off a document.’
