Opportunities for SME development in rural area of Srbac municipality

Abstract

The social welfare depends significantly on the efficiency of domestic resources. The low efficiency of use of domestic resources leads to increased costs and low productivity factor, which means the loss of price competitiveness. Non price factors of competitiveness, such as the quality of products, the international quality marks, certificates, design, services related to the product, warranty terms, can hardly compensate for the relatively high costs, especially for products that have a small share of technology. The role of government in enhancing the competitiveness is directly related to the general policy of economic development. The best long-term orientation is developing a comparative instead of competitive advantage. Microbusiness is, given the small volume of activities and quantities of products that are created in this way, the appropriate form for the pursuit of a particular agricultural or non-agricultural activities in rural areas.

Keywords

• small and medium enterprises
• entrepreneurship
• rural area
• entrepreneurial model of agribusiness