How to Achieve a Balanced Economic Development?


Economic development does not flow evenly in all parts of Montenegro. Differences in the level of economic development are directly reflected in employment and recruitment. Elimination of regional disparities in employment is a strategic option given that activation of human resources is an essential prerequisite for rapid economic and overall development of the country. Development of SE can directly reflect in increased employment, higher inclusion of marginalized groups, higher per capita and solving different social issues that existing system cannot solve.

Faster development of individual regions requires development of appropriate forms of SE that encourage employment of those groups that are not sufficiently competitive in the open market, activate potential economic resources (arable land, pastures, forests, rivers, industrial facilities that are not operational) and meet the specific needs of local community in the area of production and services. It is necessary to increase awareness and understanding of SE and social entrepreneurship at different levels (regionally, nationally and locally) and increase capacity and know-how in order to achieve sustainable development and provide better allocation and effectiveness of available funds.

Along with recognizing the benefits of SE, its further development should be more strongly supported by the Government and other institutions. The crucial impetus may come from involving all stakeholders regionally and nationally in harmonization of regulations and development of support mechanisms.

Social inclusion, reduction of poverty, deinstitutionalization of social care, rural development and employment of vulnerable groups are not areas with high profitability and it will be difficult to find investors to partner with the state in solving these issues. Thus, it is necessary to develop a framework for SE development which is based on and compatible with EU standards, and increase efficiency of existing social funds by supporting different social initiatives focused on meeting the social priorities defined in key national strategies in this field.

Development of SE in Montenegro does not depend on large budgetary allocations or changes to the system but rather on introduction of new mechanisms to match market supply and demand. The SE can play a significant role in mediation between beneficiaries (vulnerable groups) and different social and development institutions.

On different levels (regionally, nationally and locally) it is necessary to increase awareness and understanding of social economy and social entrepreneurship and to increase capacity and know-how in order to gain sustainable development and provide better allocation and effectiveness of available funds. Advocating for the development of the social economy means a commitment to efficiency, higher employment and employability, reduction of social exclusion, justice, humanity and harmonious society.

Thus, the concept of social entrepreneurship should be identifies as a model that can offer new ways of addressing and solving these problems. The development of social enterprises is one of the ways to meet the requirements of the European Union related to equal access to employment and social services. Civil society organizations in social entrepreneurship can also find new sources of financial sustainability.

[1] Efikasnost znači raditi stvari na pravi način, brzo i kvalitetno, a efektivnost znači raditi prave stvari.  Definicija efikasnosti: djelotvornost poslovanja, odnosno sposobnost ostvarivanja rezultata i ciljeva poslovanja. Efikasnost: ispravan rad – postupak. Efektivnost: Napraviti pravu stvar – rezultat. Izvor: EduCentar, Znate li razliku između pojmova efikasnost i efektivnost? 2014.

* Source: ““Strategic Study on Social Economy Development in the Context of the South East Europe 2020 Strategy