How to Achieve Better Cooperation Between the State and Municipalities in Order to Strengthen Small Businesses in Montenegro

The Analysis of Support for the Development of Micro, Small and Medium Enterprises (MSMEs) in Montenegro through the Prism of Cooperation Between Local and National Partners was conducted with the support of the Kingdom of Norway through the project "Norway for You - Montenegro". This document provides a general overview of the business environment in Montenegro, which shows a certain degree of stimulating potential, but also points to the need for further adjustment, in order to achieve an affirmative environment that will improve the development of micro, small and medium enterprises (MSMEs) in Montenegro.

During this process, information was gathered through the review of laws, strategies and related documents, as well as through communication with local government representatives, so that the analysis explicitly indicates the challenges faced by national and local actors in providing support to MSMEs. It primarily indicates the complexity of the legislative framework related to the MSME sector, which consists of about 280 laws and many bylaws, as well as the deficit of a synchronized strategic approach, mostly due to lack of participation of local governments in their drafting and implementation.

"This Analysis showed that the scope of legal solutions, regulations and strategies, as well as their frequent changes, burden vertical and horizontal cooperation and efficient operation of institutions in establishing a clear vision, perceiving and achieving visible effects on final beneficiaries. On the other hand, it is encouraging that certain legal solutions are well established, such as those on income tax, the use of electronic signatures and stamps, the prevention of illegal competition and similar. However, the insufficient connection of institutions in their implementation was noticed, which limits the efficient functioning of this sector", the "Norway for You - Montenegro" Project Manager Armen Čekić said.

The Analysis pointed out the need to improve the administrative spectrum that regulates the business of economic entities in Montenegro, and primarily the need to improve communication between local governments and public administration bodies, in parallel with improving communication within local governments. The lack of information exchange between the national and local levels, but also between local governments, is a key shortcoming in the synchronization of activities between different actors.