Private Briefing December 2025
No. 153 | Year XIII
The November 2025 edition of the Private Briefing brings the final part of the trilogy analysing available EU instruments supporting competitiveness, focusing on EFSE, EFSD Plus and EDIF, as well as the second instalment of the SME Hub trilogy, in which we examine practical experiences and support for improving management and organisational practices in manufacturing firms preparing to integrate into global value chains. We also review the Ministry of Economy’s rapid support programme for women entrepreneurs and the agricultural insurance subsidy scheme, both designed to bridge the sharp gap between available opportunities and the realities in which businesses operate.
Ministry: Support for start-ups and young entrepreneurs in 2025
// The Ministry of Economy has published a call for grants under the Programme for entrepreneurship development through support for start-ups and young entrepreneurs in 2025, with a budget of 224 million dinars combined with loans from the Development Fund, creating a hybrid instrument that covers part of the risk through a grant while providing the necessary capital through a loan. Eligible applicants include start-ups, defined as entrepreneurs, micro and small companies registered no earlier than 1 January 2023, and young entrepreneurs, where the founder or legal representative is a person up to 35 years of age. The support intensity ranges from 30 to 50% of the investment value, with applicants from less developed areas receiving preferential treatment. The remaining part of the investment is financed through a Development Fund loan, with a repayment period of up to five years, a grace period of up to 12 months, and an interest rate of 1,5% with a bank guarantee, or 2,5% with other forms of collateral.
// What distinguishes this programme from standard bank products is the cost structure it recognises as investment related. Eligible expenditures include equipment, machinery, tools, software licences and computer equipment, as well as delivery vehicles and electric mopeds. The programme also covers the adaptation of business or production premises up to 1,5 million dinars, and operating costs up to 20% of the total investment, which is particularly relevant for companies that are still establishing processes and for which the first months of operations are typically the most critical. At the same time, the list of excluded activities is long and specific, clearly steering support towards manufacturing, processing, and selected services. An additional filter is the requirement that the founder must be employed on an open-ended contract in the applicant company, signalling an expectation of full commitment to the business.
// In practice, the value of this programme lies in combining two instruments that can provide a strong development push, grants reduce the initial risk, while the loan enables the investment to be completed and operations to start. Access is partly constrained by the applicant’s ability to secure the loan, since the Development Fund requires robust collateral, a bank guarantee, a mortgage, a pledge over equipment, or a personal guarantee. Still, for manufacturing start-ups and young entrepreneurs who have outgrown the “garage” phase and need machinery or premises in order to scale, the combination of 30 to 50% grant support and a loan at 1,5 to 2,5% interest is, in practical terms, an exceptionally favourable option. For young entrepreneurs in less developed areas, this is a chance to launch a business worth up to 6 million dinars with a 50% own contribution, which may itself be a combination of personal funds and a loan, an option that is out of reach in most market alternatives. The procedure is demanding, it requires a complete set of documentation, from pro forma invoices and tax clearance certificates to structuring the investment plan and request, and preparing the proposed collateral, all of which is subject to review. The recommendation is therefore to consult accredited regional development agencies that provide free technical assistance before applying, because with hybrid instruments of this type, preparation is at least as important as the idea itself.
SME Hub Trilogy: Financial Management and Financial Controlling
// In the third part of the SME Hub trilogy, we shift the focus to financial management and financial controlling as the second core pillar of transformation, running in parallel with management improvement. If management defines how decisions are made and how processes are organised, led and monitored, finance determines whether the business model is sustainable, scalable, and acceptable to multinational buyers in terms of reliability, transparency, and the ability to meet commitments.
In practice, most manufacturing companies, regardless of their specific profile, identify the same development need, a transition from finance that relies primarily on bookkeeping and the owner’s experience to a system where core indicators are planned, measured, and used for decision making. From the outset, the SME Hub programme has been designed to treat finance neither as an administrative function nor as a purely accounting one, but as a central tool for managing the business, starting with budgeting and performance tracking, then moving to liquidity and investment management, and finally to bank relations and the monitoring of profitability and indebtedness. The programme intervenes in exactly that sequence.
The first step is to introduce a financial planning policy that clearly defines what is planned, over which horizon, and who is responsible. This is followed by a budgeting process that connects sales, production, costs, and investments, and then by the tools that make the process operational in day-to-day work. The second block of interventions focuses on liquidity, investments, and working capital. This is accompanied by a liquidity management procedure with clearly defined indicators, and tools for daily, monthly, quarterly, and annual liquidity planning, that is, cash flow planning. This approach underlines a simple premise that without systematic cash flow management, neither a strong product nor a good contract with a buyer can translate into sustainable growth.
The third set of interventions addresses the external financial environment, banks, guarantees, deposits, and the internal capacity for controlling and business performance monitoring. Here too, procedures and processes are supported by practical tools, so management can see the real cost of capital and financial services, rather than relying on fragmented information and isolated insights. The procedure for profitability and indebtedness management requires close monitoring of gross margin, EBITDA, and other criteria used by both banks and multinational buyers to assess a partner’s financial strength.
// Viewed together, these interventions illustrate why SME Hub is not conceived as a one-off grant to solve short term problems, but as a five-year programme that supports business transformation through deep interventions in management, processes, and finance. Grant funding of up to 80% of eligible costs, up to 100.000 euros per company, combined with a 4 million euros credit guarantee scheme provided through the Serbian Entrepreneurship Foundation, gains its full meaning once internal policies, procedures, and tools are introduced that can carry higher volumes, more complex contracts, and stricter buyer requirements, in other words, that can operate under the rules of larger players. From the beneficiary’s perspective, the value of SME Hub lies in addressing two typical weaknesses of manufacturing SMEs at the same time, fragmented management and intuitive financial management.
// The trilogy has examined the programme framework, then the shift from an informal structure driven by a few key individuals to an organised system of roles, procedures, and plans, and finally financial management as the logical completion of that process. When these two pillars are introduced together, the SME is no longer merely a capable producer, it becomes a reliable partner in the eyes of multinational buyers and financial institutions. This is precisely why SME Hub, as a combination of intensive advisory work, grant funding, and credit guarantee support, is a programme tailored to companies with the ambition to move from local stability to international sustainability. Glenfield, as a leading expertise in finance and management, has been involved in a number of projects from the very start of the programme, through hands-on support in designing policies, procedures, and tools, and then through an additional level of support in implementing the solutions developed. This is what makes the difference between results that remain at the level of “another project” and results that become a lasting change in how a company plans, measures, and manages its business, and how it competes at a higher level for a position in partnerships with the largest multinational corporations.
SDA: New grants to support entry into multinational companies’ supplier chains
// The Serbian Development Agency has published a public call for participation in the 2025 Programme supporting companies in entering the supplier chains of multinational corporations, with a clearly defined objective of strengthening the competitiveness of domestic micro, small and medium sized enterprises and enabling their more systematic integration into international value chains. The total programme budget is 150 million dinars, with a cap of up to 15 million dinars in grant support per beneficiary, depending on the project structure, company size, and the type of supported activities. The focus is on financing justified costs that directly contribute to establishing or expanding cooperation with multinationals or their suppliers.
Eligible applicants are domestic companies or entrepreneurs established no later than 1 January 2022, classified as MSMEs, with settled tax obligations, and not subject to bankruptcy or liquidation proceedings, nor considered undertakings in difficulty under state aid rules. Applicants must also not be related to a buyer or potential buyer and must not have the status of a multinational company or belong to such a group. In terms of capacity, applicants are required to have an implemented quality management system in line with ISO 9001, at least five employees, and a predominant activity in the production of materials, components, systems, or subsystems for the supported value chains, supported by evidence of existing or potential cooperation with multinational companies or their suppliers. Financial criteria include sales revenue from products and services in 2024 of at least 35 million dinars, which should account for at least half of total revenue, and fixed assets of at least 35 million dinars. For beneficiaries already cooperating, or in the process of establishing cooperation with multinationals that have production capacities in Serbia, lower thresholds for revenue and fixed assets apply.
Support for tangible investments covers the purchase and installation of modern production and process equipment, including CNC machines, industrial robots, production lines, quality control equipment, as well as autonomous robots and cobots, with grant intensity differentiated by company size. In the area of intangible assets, the programme supports certification of management systems and technical compliance with industry standards, the introduction of software solutions to optimise business and production processes, the development of prototypes and trial series,
listing on relevant international supplier matching platforms, and the coverage of costs for certain types of insurance relevant to operating in global supply chains. Advisory support further extends the programme’s reach through improvements in operational efficiency, corporate governance, human resources management, digital transformation, and alignment with ESG principles, including preparation for green regulations, decarbonisation, and obligations arising from the CBAM mechanism.
// This programme remains, in continuity, one of the central instruments of industrial policy aimed at strengthening the technological, organisational, and managerial capacities of the domestic economy, particularly in sectors with strong export potential and demanding multinational buyers. Its added value lies in addressing the barriers that SMEs most often face when entering high requirement international markets for the first time, from quality standards and delivery reliability, through alignment with industry and ESG requirements, to the need to finance trial series and pilot projects with limited internal resources. For companies strategically considering entry into, or a stronger position within, international value chains, the programme is a relevant financial and development lever, as it enables a portion of critical investments in equipment, certification, digitalisation, and organisational improvements to be covered through grant support, easing pressure on the company’s own cash flow during the adaptation phase. In practical terms, a well-prepared project can accelerate the qualification process with multinational companies and increase the likelihood of moving from occasional deliveries to more stable, long-term contracts, which is the real economic value of the programme for most beneficiaries.
IPARD III: Strategic support for investments in perennial fruit plantations
// The fourth public call under IPARD III, within Measure 1, has been published by the Ministry of Agriculture through the Directorate for Agrarian Payments, targeting investments by registered commercial agricultural holdings in the fruit sector. The call covers investments in establishing new and renewing existing plantations, as well as establishing new mother plantations of fruit of higher phytosanitary categories for planting material. In practice, this is support for the establishment and renewal of perennial plantations, alongside the strengthening of the domestic base of certified planting material, which fits into the broader logic of reducing dependence on imports and raising quality standards from the very start of the production cycle.
The call also covers the purchase of new equipment directly linked to production and auxiliary premises and facilities serving fruit and planting material production. Equipment intended for storage facilities, as well as equipment for production digitalisation, is explicitly outside the scope of this call, which clearly separates the strengthening of the production base from investments typically associated with the post-harvest chain and process management. The financial envelope amounts to 1,17 billion dinars,
almost exactly 100 million euros, to be allocated as grants covering 60 to 75% of eligible investment costs. The higher percentage applies to young farmers, certified organic production, mountainous areas, and investments linked to waste and wastewater management, or to the production and storage of energy from renewable sources. Per application, support can range from 20.000 to 1.000.000 euros, regardless of the total value of the investment.
An important and often underestimated administrative and technical layer of IPARD logic is reflected in the mandatory economic justification of the project. The Rulebook for IPARD III Measure 1 requires sustainability to be demonstrated through a simplified business plan when the total value of the eligible investment is below 100.000 euros, and through a more complex business plan when the value is 100.000 euros or higher. This threshold directly affects the scope of documentation and the overall preparation effort, so it is worth confirming at the very beginning of planning. The call budget is fully aligned with the programme’s support objectives, as well as with IPARD III itself, which provides 288 million euros in EU funds. With national co financing and beneficiaries’ own contribution, the total effect is projected at over 550 million euros.
// As the EU market is traditionally the most important export destination for Serbian agricultural products, with more than half of agricultural exports directed to the EU, investments in quality and standards carry a direct market dimension. For beneficiaries, this call is primarily a mechanism to reduce investment risk in perennial plantations through a high level of grant support, with a cost structure that is known in advance and an investment scope strictly defined through eligible costs. A realistic approach is therefore to view the investment as part of a multi-year cycle, where documentation preparation is as important as the choice of varieties, rootstocks, planting density, and the technology used for plantation establishment and equipment. In that context, sound advisory support in preparing the application and investment plan, as well as in securing the required pre financing, can be highly valuable, and Glenfield consultants remain available.
| KEY ECONOMIC INDICATORS | Dec - 25 | |
|---|---|---|
| 1 | Annual inflation | 2.80% |
| 2 | Reference interest rate | 5.75% |
| 3 | Unemployment rate | 8.20% |
| 4 | Average net salary - RSD | 110,670 |
| 5 | Average pension - RSD | 50,658 |
| 6 | Exchange rate RSD/EUR | |
| On the last day of the month | 117.3875 | |
| Average exchange rate for the month | 117.2507 | |
| 7 | Exchange rate RSD/USD | |
| On the last day of the month | 101.3009 | |
| Average exchange rate for the month | 101.3814 | |
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