Enhancing competitiveness of small and medium enterprises and entrepreneurs through forming of clusters

Clusters, as a form of self-organization of enterprises and associated institutions, help increase levels of competitiveness of its members by inspiring competition and cooperation. The question of increasing the popularity of clusters is especially important at the present moment when creators of economical politics are focused on finding the leading multinational companies, who's involvement on Serbia's market and starting of production, with a possibility to export it, would create opportunities to take over some of their suppliers by Serbia's SMEs. The analysis of selected European clusters has shown that joining of SMEs into clusters increases their productivity, competitiveness and export capability. Dynamic development of SMEs in Serbia will not be possible without intensified efforts in overcoming the main limitations and impediments, perhaps most importantly insufficient competitiveness and quality of products, poor organization on territorial and branch levels and prolonged amounting of unpaid bills. That is why the government has a defining role to play in creating a healthy competitive ambient, because of all the factors involved on the market, often non-economical factors, as well, and often many elements and institutions, and if the government does not take proper measures it'll create a bad business ambient in which SMEs can't use their full potential.