Cross-border cooperation between municipalities and Rožaje and Peja as an opportunity for strengthening competitiveness of small and medium enterprises

Abstract

Montenegro has made significant progress in developing a functional framework to support the development of 
small and medium enterprises. Development of the institutional infrastructure and consulting, business service 
aims to reduce entrepreneurial risk, improve market access and accelerate the growth and development of 
SMEs. Increasing the competitiveness of the SME sector to a large extent depends on the level of innovative 
activity. Innovation, as defined in the EU, is the application of a new or significantly improved products, 
processes or services, marketing or a new organizational method in business, organized labor and relations to 
the environment. 
Projects on Crossborder Cooperation and IPA funds represent is significant opportunity for the development of 
SMEs in the municipalities of Pec and Rozaje. Basis for cross-border cooperation in the framework of the IPA is 
the principle of "mutual benefit". Of course, the use of pre-accession funds will be available and enabled only if 
you have a high-quality programs and professional staff. Only high-quality projects and business ideas will create 
opportunities for new jobs and employment, primarily of young people. For northern region of Montenegro, 
especially Rožaje municipality, and the municipality of Pec in Kosovo, significant opportunities for this exist in the 
following areas: wood processing, agriculture - food production and tourism. 
In order to increase the business efficiency in both municipalities it is possible to establish a network for 
innovative development and knowledge transfer between the two municipalities, which will contribute to 
strengthening the competitiveness of SMEs.