These are the key messages conveyed during the second day of the fourth International Conference "Financial Markets of Montenegro", at the panel "Born in a Small Country, Successful in a Big Market" - How Companies from Small Economies Can Build Capacity to Grow, Sustain and Succeed in Regional Markets.
Portal bankar.me is a partner of the conference, and the panel moderator was the editor-in-chief, Ivana Boljevic.
When asked about the changes that Montenegro's entry into the EU and the potential outflow of personnel will bring, the founder and president of "EXPO commerce" and the president of the Board of Directors of the company "Domaća trgovina" Ljubomir Šćepanović He emphasized that they employ 3.000 workers and are working to establish internal predictability - to protect themselves from future events.
"I can't wait for them to come because I think we are competitive. Competition is serious and I think the EU will have advantages, but they have no understanding for local markets. At a certain point when you have a law of merged courts and when you come from a larger court to a small one, you are at an advantage. My opinion is that those who enter first and change consumer habits will drag their company into the red. Foreign companies do not like red flags and if that happens twice in a row, that management is in serious trouble," Šćepanović said, adding that Montenegro's competitors could be companies from Croatia and Slovenia.
Every market is a story in itself.
Owner and President of the Board of Directors of "Zetagradnja" Blagota Radović He emphasized that each market has its own specificities, that he operates in the countries of the former Yugoslavia and the EU, and that the differences are most often in compliance with the law. He emphasized that there are a large number of administrative barriers in Montenegro and Serbia, while Slovenia has made progress in this context.
"It is important to assess your place everywhere. There are lobbies and interests everywhere, you cannot go to big markets with big ideas from a small country with limited resources. Go ahead, prove yourself slowly, steadily and with quality, and that is the only way to go to markets outside Montenegro. It is not an easy path at all and requires perseverance and good contacts, without good lawyers in any market outside Montenegro it is extremely difficult..", stated Radović.
Asked about the key elements for success, both in Montenegro and Serbia, Šćepanović stressed that he has been on the market as an entrepreneur and investor for more than 36 years and that he believes that people, money and time are key. He emphasized that time leads to the other steps.
Radović added that he has been in the private sector since 1986 and that, in addition to perseverance, an entrepreneurial spirit is also key.
"You have to be born to be an entrepreneur, at least that's my deep opinion. You have to have the drive to work and be persistent. Timing is important, a sense of the market - what is the niche in which ideas can be placed. I remember well how many failures there were on that 40-plus year journey, but the strength of the people you work with and who support you gives you the energy to start almost from the bottom...", said Radović.
Message to the Government: Domestic Capital for Airports
Radović used the panel to send a direct message to the Government of Montenegro, reiterating that a group of domestic entrepreneurs is ready to take over the management and modernization of Montenegrin airports under the same conditions offered to South Korean partners.
"I have a message for the Government, for them to hear. There are seven or eight of us who have serious capital. Everything that the South Koreans have offered, we accept — go ahead, here's everything for them. Everything that they asked from the South Koreans, we accept," said Radović.
He pointed out that the key difference compared to foreign investors is that the profits of domestic entrepreneurs would remain in the country.
"And we are not going to take money out of this country, but we are going to invest in this country. This is our country," he said.
Radović made a point of saying that the attitude towards one's own country is measured by economic contribution, not by declarative statements.
"Patriotism is not measured by who sings louder and beats their chests harder. Patriotism is measured by who pays taxes in this country. Convey this message, it is important," concluded Radović.
Suggestions poorly considered
Radović stressed that Montenegro's accession to the EU is a positive step, but also that the alliance has interests in the country, and that they are ready to fight against competition even though they operate in a small market. Asked about networking, he explained that they are trying to influence decision-makers in Montenegro, but that they are barely hearing from them.
He stated that their suggestions for improving the business environment were not taken into account, and that he believes that society should turn to experts and visionaries, not people from one day to the next.
Radović emphasized that he also believes that the situation in the construction industry is chaotic, that there is no security for buyers and that there are many people on the market who have never been involved in this business, and that he fears that Montenegro will find itself in the same situation as Slovenia during the global financial crisis.
"We must admit that in the banking sector, the market is much more precisely defined. There, state control is maximum. And that is good. The Central Bank of Montenegro has worked intensively in recent years to regulate banks, to bring them into order, and that means to ensure safety...", he emphasized.
Huge potential
When asked where he sees the Montenegrin market by 2040, Šćepanović said that he sees it as regulated, with predictable processes, while Radović added that the state must have a development strategy. He stressed that it must be determined where the state can invest money most quickly that will bring results and better living conditions, and that he believes that it should focus on agricultural production.
Šćepanović stated that agricultural producers are a quasi-social category and that they are tired, and that it is not enough to support them, but also to embrace them.
President of the Capital Market Commission of Montenegro Željko Drinčić He asked the panelists whether it was time for Montenegro to have private companies that go public or issue corporate bonds, with Radović announcing that they were in negotiations and that "Lovćen Banka" would soon offer shares to the public.
He asked what can be invested in at the moment, given that inflation eats up standard investments, so he thinks it is crucial to invest in serious companies. Radović also emphasized that he, along with seven or eight other entrepreneurs, is willing to take over Montenegrin airports and carry out the process of their modernization.
Comparison and three stones
Commenting on the uncertainty of the market in Serbia, Šćepanović said that the situation is challenging because the predictability brought by a legally regulated system is most important. He added that the small market lacks administrative capacity, because "we are used to finishing things out of turn" and that decision-makers cannot suddenly make decisions that must be applied retroactively.
"Our situation is not great and we are finding solutions. Last year, we had some administrative measures in Serbia that brought a negative impact on the entire industry. I think the goals were good, but the way the administrative measure was implemented was not adequate, which had consequences. I think that after many conversations, people who had administrative capacities realized that they were changing decisions and finding solutions on the fly," he said.
When comparing the markets of Montenegro and Serbia, he explained that the differences in the markets of these two countries, and in general between large and small markets, can be most easily explained through the example of a stone thrown into the sea, which then sinks, one thrown into a lake, which sinks and creates waves - while one thrown into a shallow pond sinks, creates waves and raises mud.
Šćepanović emphasized that the key is readiness for constant change, that is, adaptation and continuous planning, good forecasts in budgets and business plans.
(Bankar.me)
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