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A Long Road to Facing Reality
Lack of security, principle, business culture and ethics are examples how not to conduct business, says Srdan Janicijevic

Serbian economy is one of the least developed in Europe . The awareness of our own ignorance is somewhat blurred while the government and its policies do not uphold the development of economic activity. Lack of security, principle, business culture and ethics are all examples how not to conduct business, says Srdan Janicijevic, the founder of business development company KOMOH CEHC, a man who had spent fifteen years abroad as an executive in leading multinational companies. Srdan Janicijevic returned to his homeland of Serbia with a hope that his experience, knowledge and connections will be of help.

We have a somewhat shaky reputation abroad as complex and less than honest business partners. We are often unable to accomplish tasks that are taken for granted aboard, while sometimes we achieve deeds inconceivable elsewhere. Therefore, foreign capital has little confidence in such environments. Frankly speaking, we have a long road ahead to facing reality.

To move from this standstill does not require a lot. It is not even important who is in power if we maintain the basic principles of common sense, good upbringing and basic honesty. In a serious business environment, one's word and gentlemen's agreement is worth more that a written contract since trust is the first step in doing business. Government bureaucracy and the government itself with its ministers and employees do not need to do anything original-it is sufficient that they keep quiet and do their jobs, limiting their promises to only what is realistic and possible. Such policy works for the local and foreign business partners alike who are especially sensitive to words and principles. There is no room for excessive self-confidence. Considering our unenviable economic situation, it is inappropriate to be presumptuous, falsely self-confident, crudely funny and imperfectly creative.

Foreigners Are Not Evil

Thereafter stems our anxiety for the large, worldwide companies. These companies would not be worldwide if they weren't better and more successful than the regional, and especially the local companies. It is not evil but an honor that they are here. Although many may not agree, such companies will make true business people out of our children, bring economic and social growth and improve the standard of living. They are the best proof that we are becoming part of the developed world. From the world's top 500 companies, currently there are only about ten in our country.

"Let's hope and cheer their arrival and not succumb to the populism of the ignorant. When every larger city in Serbia can boast of hosting a world acclaimed company, there will be no more talk of crisis. And the role of government will be less significant," claims Mr. Janicijevic.

In principle, our largest local companies are not against foreign capital, but are doing everything they can to avoid it. If it has to come, let it be to their companies or at least pass through them. This view is understandable but damaging. The introduction of the foreign capital decreases the local capital and competitiveness is developed. That is good for our country. The foreign capital will make the local capital regard their employees and environment if it hopes to grow. It will discipline the state and its government and improve the economic environment as a whole. As a consequence, the local companies will eventually profit. The foreign capital cannot do without the local setting and with time it will do everything to claim its only goal, i.e. capital growth, be it local or foreign.

Entrepreneurs, step ahead

It seems to Mr. Janicijevic that our companies often obstruct the positive and necessary economic development on the road to normalizing our economy. Private interest, fear of the unknown, ignorance, primitivism, spite, etc. are just some of the issues he encounters on the road of economic inevitability. There is hope that we will belong to a wider economic environment, whether we like it or not. And the values will not be "ours" but those based on sound economic principles.

Many of our companies have been privatized, says Mr. Janicijevic. Some socially owned companies have finally found owners. This is a positive change. Whether the new owners will know how to create a successful business model out of their companies is another issue. We will see many changes still, change of company owners, bankruptcy, and other occurrences normal to a dynamic market economy. But second guessing the privatization process should be limited to the areas where there have been mistakes made or mishandling suspected. The new owners should not be punished if the state or its bureaucrats had acted against the rules and business ethics. The new owners have risked enough by investing their money and that has to be respected.

We are aggressive, entrepreneurial people. We are innovative and like taking risks. All these are trades of entrepreneurs. Then why, in the last three years, less than three thousand businesses have been established in Serbia ? What's wrong? Why do we prefer to criticize rather than create? The answer is the overblown self-confidence and the image our businessmen create. With time that will change, believes Mr. Janicijevic.

The economy in our country allows doing business with a relatively small initial investment. If you have received severance as excess labor, do not spend it on a car or a washing machine, invest it in something you know how to do. No one will help you if you don't help yourself. Governments will change, so will the owners, and you, if you have any self-respect, don't waste your energy talking of others as incapable, dishonest or ignorant. Start this New Year with becoming your own man. This is one of the great traits of entrepreneurship and market economy, concludes Mr. Janicijevic.