Abstract
The aim of the chapter is to establish a mechanism for recognizing the various actors of the startup ecosystem for the rapid and successful growth of startups in Serbia, with an emphasis on improving business conditions. The strategy for the development of the startup ecosystem of the Republic of Serbia (2021-2025) contains five specific goals, but the authors focused on the fourth special goal of the strategy, which is related to the improvement of conditions for startup businesses. The subject of the work will be the implementation of necessary measures and GovTech programs in Serbia, management, as well as on raising the competencies of employees in the public administration in Serbia for successful leadership in the startup ecosystem.
TopIntroduction
The startup ecosystem is the environment in which startups, as innovative business entities, develop. The environment is composed of individuals, teams, and startups in different stages of development, as well as different types of organizations and institutions, which interact as a system. The entrepreneurial environment is entirely determined by economic and systemic business conditions, which, as an external factor, has a key role not only in the choice to launch a new business project but also in the later stages of the entrepreneurial process (Lekovic and Maric, 2016). Establishing a public policy for the development of startups affects their number and quality, but also the quality of the entire ecosystem that is created around them. By creating innovations that contribute to the transformation of the economy and the creation of new jobs, startups increase the export of products with high-added value and contribute to the economic growth of a country (The Conversation, 2021). At the end of 2021, the Government of the Republic of Serbia adopted the Strategy for the Development of the Startup Ecosystem in the Republic of Serbia, intending to bring Serbia as a country closer to other countries that respect the path of sustainable development, socially responsible business and the development of an innovative - green economy (Official Gazette of the RS). The Green economy as a term appeared relatively recently, as a necessary way of achieving economic profit, but through respect for the principles of sustainable development and social justice. Sustainable development as a concept harmonizes three dimensions - economy, ecology, and social dimension. According to Ilic, the adjective “green” is associated with it, which is widely used with all modern activities undertaken by modern society (Ilic, 2022). In addition to the concept of sustainability and responsible business, newer business entities have appeared in the sense of innovative business entities. They also require a certain environment to develop and contribute to the progress of society - the state and the economy - and they also contribute to the development of green human resources management (Ilic et al., 2023a). The strategy for the development of the startup ecosystem of the Republic of Serbia had the basic goal of encouraging the development of innovative start-up companies, to form as many of these entities as possible in the country. In Serbia, it was planned to develop between eight hundred and twelve hundred active startups that would attract quality personnel and investors both from the country and from around the world, thereby encouraging the development of new innovative ideas. The working group that prepared this document included a large number of members of the Serbian startup ecosystem, as well as representatives of state authorities, to achieve inclusiveness and to support the comprehensive development of the startup community in the best way. The startup ecosystem development strategy, among other things, should also support the improvement of startup entrepreneurial capacities through educational programs (Boldureanu et al., 2020).
Key Terms in this Chapter
GSEI: Uses hundreds of thousands of data processed by an algorithm that takes into account several tens of sets of quantitative and qualitative parameters and based on them comparatively analyzes the startup ecosystems of 1000 cities and 100 countries with a focus on the results achieved from innovative entrepreneurship in each location.
Scalability: Means the ability of a startup to grow, while maintaining all the basic properties and functions. The only way to quickly acquire a large number of users is to be ten times better than others who offer similar solutions and to have the capacity to respond to a large number of users in a short time. You are ten times better only when you are innovative and when you solve user problems in a new, easier, and faster way.
Start-Up Ecosystem: Is a business environment of start-ups in different phases of development, in which individuals, different types of organizations, and institutions actively interact with each other as a system to create new start-ups and accelerate their development.
Incubators: Are business centers of a wide range of support in the field of relevant information in the initial phase of start-up growth about business processes, financial resources, and market information, to create the most favorable conditions for their development and partial ownership of share capital in the company. Incubators are focused on innovation and accelerate ideas in hopes of building a business model and a company that will realize that idea.
Business Angels: Are wealthy individual investors who direct investments towards start-ups in the initial phase and actively contribute to their development with their investments, business connections, or experience, who have profit and partial ownership of share capital.
Venture Capital (VC): Is private venture capital that is provided by a venture capitalist to start-up companies with high growth potential in exchange for an equity stake, as they stand to make a significant return on investment if the company is successful.
Start-Up Company: Is an innovative business entity with the potential to achieve rapid and intensive growth in the future, to develop a new improved product, service, or process with the existence of a potential risk of technological or market failure.
Accelerator: A company and/or institution that provides and supports the development of startups by investing in startups with a smaller share of capital while receiving a percentage profit; and at the same time controlling costs by providing a network of contacts and mentors, and other resources. They create programs for start-ups and are provided by experts during market testing, business model development, and preparation for investors. Accelerators accelerate the growth of an existing company and focus on scaling the business.