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Impact of COVID-19 on Poverty in Serbia

Impact of COVID-19 on Poverty in Serbia
The COVID-19 pandemic created a sense of instability across the globe, not least among those living on the edge of poverty. The immediate impact of COVID-19 on poverty in Serbia was predominantly apparent among particularly vulnerable groups, such as people working in the informal sector. For workers, COVID-19 heightened job insecurity despite the government’s efforts to constrain the rate of poverty in Serbia with generous financial packages.

The Informal Sector

On March 15, 2020, Serbia declared a national emergency due to COVID-19. To mitigate the negative impacts, the Serbian government focused efforts on financial aid packages for the public. However, this financial assistance failed to reach some of Serbia’s most vulnerable groups. This includes those employed in the informal sector.

The informal sector in Serbia includes jobs in agriculture, construction, admin support, retail trade and manufacturing. A survey from 2019 discovered that 18.7% of households had employment in the informal sector. Another research study indicated that one in five people in Serbia work informally. The informal sector is an unstable sector of the labor market due to poor worker regulations and job insecurity.

Even prior to the pandemic, those employed informally faced a higher risk of falling into poverty due to the instability of the sector. As COVID-19 arrived in Europe, many industries in Serbia saw thousands of job losses.  Many people reported a significant reduction in household income and increasing financial pressure but lacked access to the government’s financial aid packages.

Since the pandemic, informal employment has increased by more than 30%. This could be connected to the staggering loss of jobs among people previously employed in small and medium enterprises (SMEs) and companies having to cut down employment hours.

These factors forced people to take up informal employment to maintain an income flow. Estimates indicated that more than 700,000 people who worked for SMEs found themselves unemployed due to the pandemic. The growth of these informal industries suggests that a greater proportion of the Serbian population now faces job insecurity and the risk of falling into poverty.

Small Successes

However, the impact of COVID-19 on poverty in Serbia is not as intense as that of neighboring countries. Serbia had one of the lowest increases in poverty over the course of the pandemic. This is no small feat for a developing country with a significant proportion of people living close to the poverty line. Despite facing the most significant global crisis of the 21st century, Serbia’s poverty level post-pandemic remained the same as pre-pandemic levels, at 17.9%. While this is a noteworthy achievement, one should keep in mind that Serbia remains one of the poorest countries in Europe. However, the stabilization of the poverty rate during these last few years gives hope that Serbia can continue the pattern of gradual and consistent poverty reduction.

Looking Forward

Amid these small wins, Serbia is looking forward to recovering from pandemic stressors. Ongoing efforts are necessary to rebuild industries most impacted by the pandemic. Additionally, by renewing former jobs and creating more security in the informal sector, the risk of poverty will reduce. In 2021, Serbia received a €200 million loan from the EU Investment Bank for a project to help impacted SMEs recover post-pandemic. The initiative seeks to restore 47,000 jobs and create more than 5,000 new ones.

Serbia is seeing positive recovery results so far. A 2022 report by the EU found that participation in the labor market is increasing in Serbia as the country continues to economically rebound from COVID-19 and youth employment is on the rise. However, the report recognized that to significantly support SMEs in their recovery, further efforts are necessary.

– Ariana Mortazavi 
Photo: Flickr

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Eliminating Human Trafficking in Serbia

Human Trafficking in Serbia
The U.N. has stated that human trafficking is the “recruitment, transportation, transfer, harboring or receipt of people through force, fraud or deception, with the aim of exploiting them for profit.” Nicolas Bizel of the EU delegation to Serbia believes that human trafficking is “the most profitable criminal activity in the world.” In the 1980s, many considered Serbia more prosperous than its regional neighbors. However, the affluence of Serbia would not last. ASTRA – Anti-Trafficking Action suggests that due to the subsequent Yugoslav Wars, the arrival of different foreign military groups into the region allowed for human trafficking to thrive in Serbia. According to ATINA, Serbia today is considered a “source, transit and destination country for children, women and men trafficked for the purpose of sexual and labor exploitation.”

The Link Between Poverty and Human Trafficking

Serbia’s poverty rate was 24.3% in 2017. In comparison, Serbia’s neighbor Hungary had a poverty rate of 12.3% in 2019, significantly lower than that of Serbia. The GDP per capita in Serbia was $9,230 in 2021 and the unemployment rate was 10.1%. Transform Justice found a strong correlation between poverty and violent crime, whereas crime and corruption are more common in nations with higher poverty rates.

In 2021, there were a total of 46 officially identified victims of human trafficking, 39 of whom were Serbian citizens. However, it is increasingly difficult to estimate the true number of victims. ASTRA Anti-Trafficking Action understands that the number could be significantly higher. Many victims of human trafficking “remain invisible to the public eye.” The main reason for this seems to be that the exploited are working in closed-off environments such as abandoned factories or fenced-off estates.

Human trafficking in Serbia affects women and children significantly more than men. Women and children count for the majority of victims in Serbia. For women, it is most likely that traffickers exploit them for sex work throughout Europe. In fact, the thriving sex trade in Serbia has “overwhelmed the police” who have become unable to sustain the campaign against human trafficking and the sex trade. The Institute For War & Peace Reporting states that the campaign against the industry is sure to fail until many women stop viewing escort work as a way out of poverty.

According to the U.S. Department of State’s 2022 Trafficking in Persons Report, Serbia was downgraded to a tier 2 rating. This means that Serbia failed to meet the minimum standards for the elimination of human trafficking, however, it is “making significant efforts to do so.”

Serbia’s Response

Serbia has set penalties for sex trafficking and labor trafficking to two to 12 years imprisonment for an adult victim and three to 12 years for a child victim, according to the Trafficking in Persons Report. This is in line with serious crimes such as rape.

The Serbian Police filed complaints on 63 suspects, an increase from 57 in 2020. The Public Prosecutor’s Office (PPO) investigated 35 suspects in comparison with 22 in 2020. However, the PPO failed to prosecute more defendants than in 2020. Alongside this, courts convicted 16 traffickers compared with 18 in 2020, according to the same report.

ASTRA-Anti-Trafficking Action

ASTRA – Anti-Trafficking Action is a non-governmental organization fighting to eradicate all forms of human trafficking. During its journey to combat human trafficking, the organization has assisted 507 victims and aims to help many more in Serbia.

The organization has employed several methods to tackle human trafficking. Primarily, an information and prevention campaign in Serbia. This includes encouraging people to pay attention, recognizing human trafficking in their environment and reporting the case. Alongside this, ASTRA educates individuals on early potential signs that they may be potential victims such as whether a potential job offer is real.

ASTRA – Anti-Trafficking Action has acknowledged that it is fighting an increasingly difficult battle due to the indifference of the Serbian institutions. As a result, it has a hotline in case any individual would like to report a matter: 011-785-0000.

The Future

The Serbian government and ASTRA – Anti-Trafficking Action’s desire to eradicate human trafficking in Serbia could be a positive step. With human trafficking largely affecting the most vulnerable, any positive action can help improve the future living situation for the most exposed in Serbia.

A healthy and growing economy can only help the poorest in Serbia, raising the standard of living and reducing poverty. Reducing poverty makes it harder for organized crime to partake in human trafficking. Reducing the risk for the most vulnerable.

– Josef Whitehead
Photo: Flickr

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Human Trafficking in Serbia

Human Trafficking in SerbiaAccording to the U.S. Department of State’s 2021 Trafficking in Persons Report, Serbia ranks as a Tier 2 country, which means “the Government of Serbia does not fully meet the minimum standards for the elimination of trafficking [in relation to the Trafficking Victims Protection Act of 2000] but is making significant efforts to do so.” The U.S. Department of Justice defines human trafficking as “a crime that involves the exploitation of a person for labor, commercial services or sex.” According to the NGO Atina, “Serbia is [a] source, transit and destination country for children, women and men trafficked for the purpose of sexual and labor exploitation, coercion to commit crimes, forced begging and forced marriage.”

Poverty and Human Trafficking

Human trafficking is more common in countries with higher poverty rates as lack of money/resources is one of its driving factors. Economic deprivation makes individuals more vulnerable to human trafficking as many impoverished people are desperate to find a way out of poverty. Low-income families sometimes resort to sending their children away with seemingly trustworthy people promising to provide the education and resources needed. Serbia is one of those developing countries where the poor state of the economy contributes to the prevalence of human trafficking. The country had a poverty rate of 21.7% in 2019, according to the World Bank, and an unemployment rate of 10.1% in 2021.

Types of Human Trafficking in Serbia

Human trafficking in Serbia involves men, women and children. However, women and children are the most vulnerable, representing the majority of victims. The targets are both domestic and foreign, with Roma children in Serbia being more likely to fall prey to human traffickers. This is a consequence of the discrimination and marginalization of the Roma community. Unfortunately, the majority of the Roma population also faces difficulties accessing social protection, decent housing and other essential resources.

Usually, Serbian women are trafficked in sex work all over Europe, particularly in Turkey, Austria, Germany and Italy. Men, on the other hand, are mainly forced to work in labor-intensive sectors, whereas children are pushed into “sex trafficking, forced labor, forced begging and petty crime.” According to the 2021 TIP Report, “thousands of migrants and refugees from the Middle East, Africa, and Asia transiting through or left stranded in Serbia are vulnerable to trafficking within Serbia.”

According to the 2021 TIP Report, courts and judges are often lenient toward defendants accused of human trafficking and forced labor, with some judges displaying victim-blaming attitudes and prejudices, especially toward vulnerable groups and Roma people.

Serbia Takes Action

Over the last few years, the Serbian government has increased national spending on anti-human trafficking efforts. For instance, the government gave $240,080 to the Center for Protection of Trafficking Victims (CPTV) and the Urgent Reception Center (URC), a sharp rise in comparison to the $31,320 contribution in 2019.

The government has also implemented awareness campaigns and stepped up law enforcement efforts. In 2020, Serbian authorities prosecuted 42 defendants for sex trafficking and forced labor under article 388, a reduction from 47 prosecutions in 2019. Serbia has set penalties of up to 12 years for such criminals and convicted 18 traffickers.

In order to investigate forced labor, the Ministry of Interior founded a new investigation unit in 2019. The COVID-19 pandemic had, however, delayed trials and negatively impacted police investigations, which are crucial in the battle against human trafficking.

Atina Fights Human Trafficking in Serbia

Founded in 2004, NGO Atina is committed to fighting human trafficking in Serbia. The organization employs a strategy comprised of five components: victim protection, prevention, social enterprise, capacity strengthening and policymaking/advocacy.

Atina founded the social enterprise Bagel Bejgl as a means of providing girl refugees, migrants and trafficking victims with an opportunity to achieve economic independence. Atina director Marijana Savic said on the NGO’s website that the girls also learned valuable skills while working in the bagel shop to take forward into future employment.

Looking Forward

The Serbian government’s efforts to address human trafficking are a step in the right direction in order to secure a better future for the country’s most vulnerable people. Furthermore, Serbia has seen an improvement in the state of the economy with a GDP growth rate of 7.4% in 2021 in comparison to -0.9% in 2020. A stronger economy may allow the country to provide vulnerable citizens with stronger social safety nets and raise living standards in Serbia. With less poverty, citizens will be less vulnerable to the conditions of modern slavery and forced labor.

– Caterina Rossi
Photo: Flickr

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Serbia’s Cash Incentives Encourage Vaccinations

Serbia’s cash incentivesIn May 2021, Serbian President Aleksandar Vučić announced a new incentive for Serbians to get their COVID-19 inoculations: cash payments. Each fully vaccinated person would receive 3,000 Serbian dinars, equivalent to about $30 in the United States. The policy, aimed at incentivizing Serbs to get vaccinated, may also play a major role in reducing poverty in Serbia. Serbia’s cash incentives to encourage vaccinations have inspired other countries to follow suit with similar strategies.

Poverty in Serbia

Serbia is one of Europe’s most impoverished countries. In 2017, the poverty rate stood at 19.30%. In 2020, the unemployment rate was around 9%, a drastic decline from its peak of 24% in 2012. Poverty rates are particularly high in the rural and southern regions of the country. In an environment of widespread poverty, $30 is a significant incentive that “equates to around 5% of the country’s average monthly salary.”

How Cash Incentives Can Reduce Poverty

Serbia’s cash incentives could be an effective way of reducing poverty. A 2019 study in Kenya showed that cash transfers to impoverished families had a significant impact not only on the recipients but on the entire local community. The study found that each dollar of aid increased economic activity in the region by $2.60. President Aleksandar Vučić’s cash incentives might provide a similar economic boost in Serbia’s cash-poor economy.

Cash Payments Boost Vaccination Rates

The advantages of Serbia’s cash incentives are far-reaching. By providing a strong monetary incentive, the Serbian government increased the number of people who chose to get vaccinated. The public health benefits of a vaccinated country are obvious, but a vaccinated county will also boost Serbia’s economy. Economists universally agree that vaccination programs will add billions of dollars to the global economy within the next few years.

The World Economic Forum states that by ending the pandemic, “10 major economies could be $466 billion better off by 2025.” With vaccinations, workers will be able to resume their everyday jobs, businesses can reopen and the economy can flourish. Greater wages will mean greater prosperity for everyone. Due to these economic benefits, Serbia’s vaccination program will likely pay for itself many times over.

Cash Payment Successes

Serbia’s cash incentive strategy may already be paying off. As of August 4, 2021, almost 40% of Serbia’s population is fully vaccinated, significantly more than the majority of Serbia’s Balkan neighbors. Neighboring Bosnia and Herzegovina has only a 7% vaccination rate, and Bulgaria, only 15%. Perhaps these countries, both of which have their own poverty problems, would benefit from Serbia’s vaccination strategy.

Serbia is not the only country to offer rewards for COVID-19 inoculations. In neighboring Romania, Bran Castle offered visitors free admission if they came to receive their shots. Additionally, the U.S. state of West Virginia offered $100 awards to anyone getting a vaccine. Vaccination will allow an individual entry into lotteries where participants will have the chance to win cars, scholarships and even a million-dollar grand prize.

Serbia’s program, however, is one of the first and most ambitious programs to encourage COVID-19 vaccinations. With a cash incentive strategy, Serbia demonstrates how a single action can provide several benefits, reducing poverty at the same time.

– Thomas Brodey
Photo: Flickr

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COVID-19 Vaccinations in Serbia

COVID-19 Vaccinations in SerbiaSerbia, a country located in Europe, has seen success when it comes to COVID-19 vaccine statistics, approvals and productions. The Serbian government is providing incentives to encourage citizens to get vaccinated with the aim of increasing vaccination rates. The rate of COVID-19 vaccinations in Serbia indicates a positive upturn in Serbia’s fight against the virus.

Vaccine Statistics in Serbia

Serbia’s COVID-19 vaccination campaign has been successful so far as more than 38% of Serbians are fully vaccinated against COVID-19 as of July 5, 2021. So far, the government has administered more than five million doses of COVID-19 vaccinations in Serbia. According to the latest COVID-19 statistics from Reuters, Serbia is experiencing roughly 114 new daily infections, equating to 11 positive COVID-19 tests per 100,000 people tested. During the last officially reported week, Serbia reached a daily average of more than 10,000 administered COVID-19 vaccinations.

Pfizer Vaccine Approval for Children

Serbia’s medical agency now allows children between the ages of 12 and 15 to receive the Pfizer vaccine. The Medicines and Medical Devices Agency of Serbia approved this after carefully considering the research of many clinical trials conducted in other nations. Serbian government health official, Mirsad Djerlek, says children with underlying health conditions are a priority as they are more vulnerable to contracting COVID-19.

Vaccine Incentives

Serbia’s initial intention was to have half of the population vaccinated by the end of June 2021. Data indicates that Serbia did not reach this goal, but nevertheless, Serbia is still reaching a significant number of people with its vaccination campaign.

To encourage citizens to get vaccinated, President Aleksandar Vucic promised that citizens who got vaccinated before the end of May 2021 would receive a cash incentive of $30. Vucic’s expectation was to have three million people vaccinated by the end of May 2021. Serbia has made vaccination sites more accessible with locations in shopping malls. To further boost vaccination rates, Serbia announced that it would also be offering vouchers to those who get vaccinated.

Partnering with Russia

Serbia has partnered with Russia to ramp up Russia’s Sputnik V vaccine manufacturing. In June 2021, Serbia’s Institute of Virology, Vaccines and Sera “Torlak” in Belgrade began production. President Vucic and Russian President Vladimir Putin came to this agreement while acknowledging the importance of collaborative efforts in fighting the global COVID-19 pandemic.

Vaccine Successes

When it comes to COVID-19 vaccinations in Serbia, the country has seen success so far. Serbia is getting close to vaccinating half of its population. More categories of the population are now eligible for the Pfizer vaccine and Serbians are receiving incentives to encourage vaccinations. Serbia is also giving a helping hand to other countries by providing vaccine donations to several countries. In May 2021, Serbia donated 100,000 vaccines to the Czech Republic, among other donations. As a production site for Russia’s Sputnik V COVID-19 vaccine, Serbia is certainly playing a significant role in combating the COVID-19 pandemic.

– Chloe Moody
Photo: Flickr

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Father Varga Crafts Stoves for Refugees in Serbia

Refugees in Serbia
As the Hungarian migrant crisis rages on, migrants and refugees living in Serbia face dangerous conditions in the Serbian winter. Currently, 100 people a day are attempting to get to Hungary from bordering countries such as Serbia and Romania. Many migrants, fleeing wars from Syria, Afghanistan and Iraq, come in masses to the border to Hungary. There, the country is now erecting a massive fence along its Serbian border.

Between January and July 2020, official records state that 90,000 refugees moved into Serbia and another 103,000 moved into Hungary. The European Union estimates that many more are still undocumented. Hungarian border police are calling this movement a new “migrant surge.”

Hungary’s Borders to Migrants

Hungary has been building its 13-foot high razor-wire fence since the migrant crisis of 2015 when more than a million migrants arrived in Central Europe. According to The New York Times, some see the fence as “a very physical manifestation of the quandary of the migration crisis and the lack of cooperation among European Union nations as they struggle to deal with it.” Hungary has defined this issue as a “state of migrant emergency,” since approximately 400,000 migrants crossed its borders in 2015, a flux of numbers that have since slowed to a trickle.

Migrants often experience horror in the form of police brutality, with those in Hungary having to move back into Serbia. A 14-year old boy told BBC about how police beat him up near the Hungarian border, poured cold water on him and forced him to walk barefoot back into Serbia. Of these accusations, the Hungarian authorities responded to BBC, saying, “Hungarian police and soldiers are defending the Schengen border of the EU for the sixth consecutive year, legally and without violence, against illegal migrants arriving on the Balkan route.”

Refugees living in Serbia, awaiting an opportunity to move into Hungary, are living in dangerous conditions. Without access to food, water or heat, many of them find limited shelter in abandoned factories. In the small Serbian town of Subotica, 10 km from the Hungarian border, an estimated 500 men currently reside in unheated tents.

Father Varga

Among the gloom, a glimmer of hope exists for the migrants of Subotica. That hope comes in the form of Protestant pastor Tibor Varga, whom the migrants endearingly refer to as ‘Father Varga.’ Varga has been working with an Eastern European charity for four years. Through his work, he has helped refugees in Serbia gain access to necessary amenities. Daily, Varga brings bread, eggs and toiletries to the migrants. For years, Varga had been the only one assisting those in Subotica. The authorities there supplied only water during the heatwave of July and August in 2020.

During the cold Serbian winter, Varga also brings heating. He builds stoves for the migrants to keep warm out of old barrels in his garden. Varga makes more than three a day. He reinforces the base and walls of the barrel with roof tiles, which a mixture of sand and clay keeps in place. He also manually scrapes off the poisonous red paint from the barrels. Varga then loads each stove, approximately 66 pounds each, into his van. He then drives and delivers them to the migrant camps.

Love and Care

Varga explained that the Hungarian border fence is a cause for concern for refugees in Serbia. However, he said that “looking at the other fences around the world, you can say that these people are very determined to get through it. They have already been confronted with major problems in their lives.” Varga looks at his volunteer work as his Christian mission, saying “these people are desperately in need of help. I hope we can just alleviate this situation with love and care.”

– Nina Eddinger
Photo: Wikimedia Commons

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What Serbia’s Technology Industry can do for its Economic Situation

Serbia's Technology Industry
Serbia’s technology industry is growing, and recently it received a ranking of the 40th globally in exporting software. The growth of this sector has improved the country’s economy. Additionally, students receive encouragement to participate in higher education, especially in computer sciences and engineering. The hope is that an increase of startup companies in the technology sector will continue to stimulate local economies and boost Serbia’s position globally.

Employment in Serbia

In 2018, Serbia had an unemployment rate of 14.8%, an increase from the past years. Furthermore, in 2016, the Serbian Statistical Office recorded a total youth unemployment rate of 44.2%. One of the reasons for these high rates is the education system. Despite having nearly a 90% graduation rate from high school, Serbia’s education does not provide the workforce with the proper tools to meet its economic needs.

These factors led to the National Employment Action Plan for 2020, which concentrated on youth employment and workers with lower educational levels. However, Serbia’s technology sector requires a significant number of highly skilled and educated professionals to further technological advances through knowledge and inventions. Since this sector is the most important in the country, the government is currently focusing on higher education in Serbia to produce more highly skilled workers, specifically software engineers.

The Education System

To support Serbia’s technology sector, the government has dedicated nearly $80 million to science and technology centers. Additionally, it plans to provide schools in Serbia with almost $85 million in funding for better internet connections and equipment such as computers and software.

The education system has already received credit for producing many software engineers in Serbia. Children start programming early, with computer science classes starting in fifth grade and continuing into high school. Also, students who wish to pursue an education in STEM have the opportunity to attend one of the 80 high schools in Serbia that specialize in computer science and electrical engineering. Every year, more than 3,300 software engineering students graduate from colleges in the country, and the number of graduates is increasing every year.

In 2019, Serbia’s economy grew by more than 4% but stagnated in 2020 due to the COVID-19 crisis. Serbia’s technology industry had more than 2,000 firms in 2017, a large increase from 700 in 2006. Furthermore, the industry revenue nearly doubled during that period. Google has started supporting Serbia by using its Google Developer Launchpad, which helps technology communities and startups in countries aiming to develop further.

Serbian Startups

Nordeus, a self-funded game developer, began in Belgrade, Serbia. Soon after, the company gained recognition for producing one of the most popular online sports games, which took in a yearly amount of $75 million. In addition, the startup Seven Bridge Genomics has raised more than $100 million and is bringing together scientists who research on finding therapies in order to cure cancers. The company employs the largest number of bioinformaticians in the world within the private sector. Additionally, the crowd-funded startup Strawberry Energy invented smart benches which provide Wi-Fi as well as outlets to charge your phone. Strawberry Energy started with benches in Belgrade but has already expanded into 17 countries.

Serbia’s technology industry has the potential to fight the country’s economic stagnation. Therefore, the government is supporting the technology and startup community with investments and improvements in the education system. Due to these measures, Serbia hopes to see a rise in employment and economic growth rates, hoping to lift people out of poverty in the country.

– Sarah Kirchner
Photo: Pexels

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Impact Hub Helps Serbian Youth Unemployment

Serbian YouthBelgrade is Serbia’s capital, with a population of over 1.7 million people. With a 40% youth unemployment rate, large numbers of Serbs were forced to leave the country and search for work elsewhere. Unemployment in Serbia is significantly higher than the European average and one of the country’s significant economic challenges is the need for private-sector job creation. In the last 12 months, Serbia has had 62 startups with $0 in total funding. More than ever, the country is in need of a program like Impact Hub to help Serbian youth.

Impact Hub

Impact Hub was founded in London in 2005 and now has over 7,000 members in more than 60 locations, one of which is Belgrade. The program is funded by USAID and assists young innovators in accessing the tools they need to connect with investors because unsuccessful funding is the biggest obstacle for startups. On Impact Hub’s website, online visitors can become “Impact Angels” and invest in a startup in minutes.

Impact Hub assists in the development of new products and business models. The program focuses on technological innovators and entrepreneurs and the future of their businesses. The organization provides collaborative workspaces, program support, an inspirational environment and diversity.

Impact Hub Belgrade offers young entrepreneurs resources such as acceleration and connections to grow their business. It is both a community center and a business incubator. The program encourages the sharing and building of a community and the space in which the project operates is used to organize events, from arts and culture to entrepreneurship.

Guiding Young Entrepreneurs

Impact Hub founders believe talent allows for growth and production. Since many young people know how to code, design and create innovative solutions, Impact Hub aims at helping  Serbian youth grow their startups. The program secures investments and teaches young people about using money in competitive markets. Impact Hub wants to get young entrepreneurs out of their comfort zone to expand their network. There are two different paths that Impact Hub employees guide entrepreneurs through. The first is “Core Competence for Market Validation,” in which individuals learn how to get the first buyer, expand their customers and make financial projections. The second is “Growth Readiness” and focuses on profiling a buyer, expanding traction and creating revenue models.

Impact Hub Belgrade implemented an initiative called We Founders, in which startup teams, founders, leaders and business developers can connect and work to improve their businesses. Impact Hub helps form partnerships to allow people to share the risks and prepare together for possible losses.

Impact Hub is Positively Impacting

Participants of Impact Hub raised $230,000 in investments from the Serbian public sector and private investors, not including a $100,000 investment from Dubai’s Innovation Impact Grant Program.

Alongside USAID, Impact Hub Belgrade gives Serbian youth the chance to see their innovations and ideas come to life. Outside of Belgrade, Impact Hub is available worldwide to allow individuals the opportunity to receive education regarding the tools and skills necessary for creating a business.

– Rachel Durling
Photo: Flickr

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How Serbia’s Youth is Making a Difference

Youth in Serbia
Serbia is a European country that was formerly a part of Yugoslavia. Located in the West-Central Balkans, it is surrounded by Romania, Hungary, Bulgaria and Croatia. The majority of the population is of South Slavic origin and they speak Serbo-Croatian, which is nearly the same language that the Croats, Bosniaks, and Montenegrins speak.

Over time, a majority of Serbia’s population migrated to the capital city Belgrade from more rural areas. As recently as 2018 however, 43.9% of the people in Serbia still lived in the countryside. In 1945, when the country was still part of the former Yugoslavia, Serbians were under a socialist economic system. Although some free-market characteristics were later adopted in 1948, there was still a large emphasis on socialist self-management.

Youth Unemployment

Today, the youth in Serbia have been consistently making efforts to promote and provide a platform for entrepreneurship among young citizens. Near Belgrade—which has been a center for innovation and entrepreneurship over recent years—is the Impact Hub Belgrade.

One problem affecting the economy in Serbia is related to job availability among young citizens. The unemployment rate among youth is 40%, so providing employment opportunities to these citizens would impact a large portion of the population that is struggling to enter the job market or start businesses.

As a result of poor job opportunities, large numbers of young Serbians leave Serbia in search of work elsewhere. If the youth had more accessible jobs and economic opportunities, it may be more compelling for them to stay and stimulate their own economy, as opposed to the economies of other countries.

Impact Hub

Impact Hub focuses on supporting young entrepreneurs by strengthening their networks with investors in order to attract their investments. This provides an economic foundation for businesses to operate and produce goods and services.

One of the programs initiated by Impact Hub was called the Launch Pad, which provided these young entrepreneurs not only with tools needed to create new products, but with training to broaden their business skills. In addition, the program helped the youth in Serbia develop business models and connect with investors at home and abroad. This program received grants from USAID to help with funding.

Even though the program has ended, it raised a total of $230,000 from the domestic public sector, as well as from the private sector both at the national and international levels. Investments continued, including a $100,000 fund from the Innovation Impact Grant Program in Dubai.

Continued Efforts and Progress

Serbia’s economic freedom score by 2020 has increased by 2.1 points, bumping it to 66.0, and it saw GDP growth as recently as 2018. Even though Serbia has faced numerous economic difficulties since its independence, there are efforts being taken by its citizens to drive and stimulate the economy. The youth in Serbia have especially taken notable actions and the country continues to be supported by the USAID and many other programs and countries domestically and internationally.

– Fahad Saad
Photo: Pixabay

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Youth Entrepreneurship in Serbia

Youth Entrepreneurship in Serbia
Serbia is a southeastern European country with an upper-middle-income economy. It ranks relatively high on the Human Development Index (63rd), Social Progress Index (53rd) and the Global Peace Index (54th). However, the nation suffers from high unemployment, especially in the youth population: Serbia recorded a youth unemployment rate of 30.3% in 2019. The lack of entry-level jobs consequently drives many young Serbians to flee their home country in search of work elsewhere. However, USAID has invested in an inventive solution to this problem: initiatives to promote youth entrepreneurship in Serbia.

Impact Hub Belgrade—Fostering Youth Entrepreneurship

USAID’s most notable endeavor is Impact Hub Belgrade. Impact Hub is a USAID-funded global network focusing on establishing entrepreneurial communities in cities worldwide. Serbia’s Impact Hub is located in Belgrade, Serbia’s capital city. It specifically focuses on youth entrepreneurship, helping youth-led start-ups to attract potential regional and international investors. In particular, it helps hone and validate young entrepreneurs’ business models, providing them with the materials and skills needed to turn their ideas into reality. Insufficient access to finance is the number-one challenge young entrepreneurs face. Therefore, Impact Hub dedicates itself to eliminating this obstacle and creating boundless opportunities for young Serbians. The program celebrated its fifth anniversary in December 2019.

Impact Hub Belgrade also prioritizes gender equality in its work. While Impact Hub Belgrade has a special focus on youth, it also recognizes the unique barriers that young female entrepreneurs face. On its anniversary in December, Impact Hub launched Women Entrepreneurs (WE) Founders, the first Serbian female investment group dedicated to fostering and supporting gender-diverse entrepreneurial teams and companies. Some of its techniques include ensuring women have an equal role in decision making, building trusting relationships between men and women in the workplace and encouraging women to take leadership positions.

Junior Achievement

Junior Achievement is another USAID-funded entrepreneurial program. The program is a training curriculum with the intention of teaching Serbian high school students the essentials of entrepreneurship. These essentials include writing business plans, identifying product placement and forecasting earnings. It ensures Serbian high school graduates enter the job market with the technical skills necessary to successfully establish a business. And while Junior Achievement programs are present throughout Europe, Serbia’s is among the strongest; in 2018, Belgrade hosted the European Student Company Competition, where 39 student-led companies from across the continent convened to present their businesses to a jury of prominent Serbian entrepreneurs.

Non-Governmental Organizations

Non-governmental organizations also support young entrepreneurs. A notable example is Smart Kolektiv, an independent nonprofit organization with the stated purpose of promoting youth entrepreneurship in Serbia. Smart Kolektiv assists young entrepreneurs in establishing their businesses. Its hope is that Serbia’s youth will use their power to drive positive social change.

Success in Entrepreneurship

Young entrepreneur success stories abound across Serbia. One example of lucrative youth entrepreneurship in Serbia is Nikica Marinkovic’s Box System, an eco-friendly replacement for styrofoam designed to transport organic produce. Thanks to Impact Hub, Marinkovic gained funding from Austrian investors and U.S. markets that allowed him to expand his business.

Encouraging youth entrepreneurship in Serbia is just one way to encourage young Serbians to stay in their home country and fulfill their dreams. However, the popularity of these initiatives and their encouraging results also demonstrate that fostering youth entrepreneurship is a lucrative option for Serbia’s economy. Prosperous, youth-led operations continue to emerge throughout Serbia, from independent coffee shops to cutting-edge technologies.

– Abby Tarwater
Photo: Flickr