One of the basic conditions of economic development, as also the
development of entrepreneurship, is stable business environment. Because
of previously mentioned, it is very important to overview the current
environment of small and medium sized enterprises in Serbia. Realistic level
of gross domestic product in 2005 was 60% of level in 1990. Total
industrial production has been increasing according to average annual rate
of 1.3%. Level of industrial production in 2005 was 45.2% of production
level in 1990.