Business Development Challenges in Montenegro

By , 25 Sep 2019, 22:12 PM Business
Business Development Challenges in Montenegro Copyrights: Milan Dragić

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25 September 2019 - Expensive loans, collection of receivables, extended deadlines for obtaining permits and long, drawn-out court procedures in commercial disputes are some of the most important challenges and barriers Montenegrin businesspeople are faced with, said CEO of Montenegro Business Alliance Milan Dragić, CdM reports.

He said that it was necessary to intensify activities and engagement of all relevant subjects in order to reduce barriers, especially those referring to sluggishness or insufficient responsibility in public administration.

"The problem of illiquidity and collection of receivables still exists. Provision of financial funds is a problem due to expensive loans and this issue should be addressed with utmost attention, as it affects the business development. Deadlines for obtaining different kinds of permits should be shorter and a number of documents required for the procedures should be reduced. It is necessary to accelerate court procedures in commercial disputes, especially in contract performance. These barriers target all sectors and they need to be addressed comprehensively. Every economy and society as a whole depend on business. Is there anything more important than providing optimal conditions to those who create new values," asked Dragić.

According to him, innovation is necessary if we want to be competitive in demanding foreign and domestic market. In that context, the quality of products and service offered is essential.

"We should endeavor to provide the greatest possible productivity in order to increase competitiveness. Creating a stimulating environment for businesses is crucial. MBA is very engaged in this regard," says Dragić.

Asked to give his opinion on the business environment in Montenegro, Dragić says that it has considerably improved.

"MBA was the first company to start dealing with the problem of business barriers. And the progress we have made is more than obvious. Usually, people who decide to set up their own business lack initial financial funds. In other words, they are required to provide the money on their own. That has to be changed if we want to encourage business development," pointed out Dragić.

He also added that the cooperation with state and local administration authorities is increasing.

"Certainly, it can be much better, but there is will and that is what matters. Representatives of state and local authorities are becoming aware of the importance of business associations and they are ready to take up our suggestions. To be more precise, they are starting to regard us as their equal partners and that is a necessary prerequisite for raising the quality of our business relations. We firmly believe that the role and influence of business associations will become even more important," concluded Dragić.

Read more news about business in Montenegro at TMN's dedicated page.

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