Read our latest KnowHub interview with the Montenegrin representatives of Ministry of Economic Development, Directorate for Development of Small and Medium Enterprises.
Please introduce us about the Ministry?
The Ministry of Economic Development is oriented toward improving competitiveness, cooperation with companies and improving the business environment, all with the aim of facilitating business for small and medium enterprises and strengthening entrepreneurship. The Ministry is oriented toward creating conditions that will lead to the establishment of modern Montenegrin industry. The Ministry of Economic Development invests in development and innovation in order to strengthen knowledge-based economic development and encourages the development of ICT products and services.
The Ministry of Economic Development has nine directorates. One of the directorates is the Directorate for Improving Competitiveness, within which the following directorates function:
- Directorate for Improvement of Investment Environment
- Directorate for Development of Small and Medium Enterprises
- Directorate for Strengthening Entrepreneurship and Cooperation with the Business Community
- National Brand Directorate
The Directorate for the Improvement of Competitiveness, among other things, performs activities related to following:
• Cooperation with local self-government units in order to improve the business environment at the local level and attract investors;
• Cooperation with business associations and other institutions that provide support to business development and entrepreneurship in order to define new programs to encourage business development
• Development of women’s entrepreneurship
• Creation and implementation of specialized programs and projects to support micro, small and medium enterprises
• Programs to encourage entrepreneurship, competitiveness, innovation and exports;
Describe your core business and what are your main products/service?
The Directorate for the Improvement of Competitiveness, among other things, performs activities related to following:
• Cooperation with local self-government units in order to improve the business environment at the local level and attract investors;
• Cooperation with business associations and other institutions that provide support to business development and entrepreneurship in order to define new programs to encourage business development
• Development of women’s entrepreneurship
• Creation and implementation of specialized programs and projects to support micro, small and medium enterprises
• Programs to encourage entrepreneurship, competitiveness, innovation and exports;
In your opinion, what are the biggest problems in the business of economy of Montenegro and what is the plan for improvement?
The biggest problems in the business of the economy of Montenegro is primarily the fight against the gray economy. Further, the Montenegrin economy relies too much on tourism, which proved unsustainable, especially during the Covid 19 pandemic. The development of agriculture and tourism is what Montenegro needs.
The need for the process of reindustrialization is emerging as one of the key mechanisms in order to strengthen the Montenegrin economy. This process requires time, and after the implementation of structural reforms, it should enable production processes based on modern technical and technological achievements where the structure, quality and design of products are constantly adapted to market requirements. In this context, the intention of the Ministry is to undertake all activities in the direction of targeted and innovative industrial development and more efficient targeting of state support to small and medium enterprises in this area through various programs to improve competitiveness.
What should change in the educational system of Montenegro in order to timely provide the staff needed by the economy in today’s dynamic market environment?
The education system in Montenegro must encourage creativity, innovation and entrepreneurship among pupils and students. Reproducing knowledge learned from textbooks without practical exercises is still a practice in many schools. This practice needs to change in order for young people to be able to adapt more easily to changes in the market. I think that things are getting better when it comes to universities, because the Law on Higher Education requires that 25% of the total teaching be practically oriented. However, changes are necessery in curricula that would enable the acquisition and encouragement of entrepreneurial and service-oriented competencies among students.
How do you see the current state of education of pupils and students in Montenegro in terms of the development of entrepreneurial mindset?
The development of entrepreneurial learning in Montenegro began about twenty years ago, when the introduction of various activities at all levels of education began, mainly aimed at acquiring economic and entrepreneurial literacy.
Since 2006, the Montenegrin system has been adapting to the needs of developing competencies for lifelong learning, which also applies to entrepreneurship, and these activities are being adjusted to the level and type of education. Despite that, entrepreneurial learning is not at a high level in Montenegro. Entrepreneurship is taught partly through primary school but somewhat more through secondary vocational schools. However, in the Gymnasium, entrepreneurship is taught only through an elective subject. In recent years, activities on compulsory entrepreneurial and practical learning have been launched at universities through numerous projects, but the results achieved are still not at a satisfactory level.
Within the EU project entitled “Re-establishing links between universities and companies in order to support entrepreneurial activities and innovations”, the establishment of center for commercialization of ideas and support for entrepreneurship at the University of Montenegro. How do you see the need of companies to establish such a center?
In my opinion, this center will be of the great importance for the University as well as for the business sector. On the one hand, by developing entrepreneurial competencies, students will have a chance to turn their ideas into reality and place them on the market. On the other hand, companies will have the opportunity to have better access to university knowledge that will serve them to improve their own processes and products. Cooperation of this type is very useful both for strengthening the competitiveness of companies and for the development of entrepreneurial competencies of students, but also for student practice.