COMPARATIVE INSIGHTS INTO ENTREPRENEURSHIP IN ROMANIA AND SERBIA: A GEM-BASED ANALYSIS

Entrepreneurship is a key driver of economic development, particularly in transitioning economies. The present paper compares the entrepreneurial ecosystems of Romania and Serbia, two countries with shared historical and regional contexts but distinct developmental trajectories. Utilizing data primarily from the Global Entrepreneurship Monitor, this analysis examines core indicators such as perceived opportunities and systemic framework conditions. The methodology leverages GEM’s dual approach, combining individual-level insights from the Adult Population Survey with systemic evaluations from the National Expert Survey. Additional insights are drawn from international sources such as the World Intellectual Property Organization and the Observatory of Economic Complexity. Findings reveal comparative aspects between the two ecosystems. Both Romania and Serbia exhibit relatively similar (moderate to strong) performance in - physical and services & commercial and professional - infrastructure combined with moderate internal market dynamics, creating a stable foundation for basic entrepreneurial activity. Serbia stands out with relatively more robust governmental programs. Nevertheless, significant challenges persist. Romania faces pronounced difficulties in R&D transfer and limited effectiveness of governmental programs, which hinder its capacity for innovation-driven entrepreneurship. Similarly, Serbia struggles with inadequate access to financing for entrepreneurs, presenting a shared obstacle to fostering a more vibrant entrepreneurial landscape. These insights bring forward shared challenges in cultivating innovation-driven entrepreneurship and highlight the inadequate institutional support. The comparative analysis underscores the importance of tailored policy interventions to address systemic weaknesses and leverage each country’s strengths. The results also contribute to understanding entrepreneurial dynamics in Central and Eastern Europe, offering insights for researchers, policymakers, and practitioners.