Defining homogenous areas of Serbia based on development of SME in agribusiness using the cluster analysis

Abstract

Current state of small and medium-sized enterprises in agribusiness in Republic of Serbia is beneath possible and satisfied level. Underuse of economic potential of agriculture is a great opportunity for development of SMEs on the one side, and for development of agribusiness on the other. Cluster analysis is a method used to determine how the municipalities in the Republic of Serbia are grouped according to the level of development of small and medium size enterprises in agribusinesses. Also, in this way we get insight into current condition of regional development of this sector, as well as possibility for development of least developed municipalities in Serbia. At the end, nine homogeneous groups of municipalities were formed, and in addition, each cluster has its own special characteristics in terms of the intensity of some of the observed indicators.