According to data from the Statistical Office of the Republic of Serbia, Jablanica District lost nearly 15% of its population between the two most recent censuses (2011–2022), while the Pčinja District experienced a population decline of almost 6%. These figures highlight the issue of depopulation, which is significantly more pronounced than in the largest urban and economic centres, where population numbers are either stagnating or slightly decreasing.
The disparities are even more evident in economic indicators when comparing Jablanica and Pčinja with centres such as Belgrade and Novi Sad — investment levels and average salaries are considerably lower. In addition, large centres benefit from more developed entrepreneurial infrastructure, broader access to support programs, and a greater presence of business incubators and innovation centres.
Parts of Southern and Eastern Serbia still face limited access to support for young entrepreneurs, underdeveloped educational and mentoring programs, and weak market linkages. These challenges directly contribute to youth outmigration, the weakening of local communities, and reduced opportunities for launching businesses in the rural mountain areas of southern Serbia.
Can the Startup Village model take root in Southern Serbia?
The Institute for Development and Innovation took part in the kick-off meeting of the Start in Mountains project, held on May 26–27, 2025, in Brussels. Representatives of 8 partner institutions from 7 European countries gathered with the aim of improving conditions for innovation and entrepreneurship in rural mountain areas.
Over the course of the two-day meeting, participants exchanged knowledge and best practices, with a special focus on the Startup Village concept — referring to revitalizing small towns by creating environments where entrepreneurship and innovation can thrive.
Following an analysis of the situation in each of the pilot areas, the project partners identified key challenges, existing policies, and the level of institutional readiness for implementing the model. The Institute presented key findings from the pilot region in Serbia — Jablanica and Pčinja districts. The exchange of experiences showed that, although this region lags significantly behind other European pilot areas in terms of development, there is clear potential for applying the Startup Village model through stronger institutional support and the implementation of targeted economic measures.
The Institute’s goal is to actively contribute to improving economic policy through the development of the Youth Company instrument, which proposes indirect reimbursement of lump-sum taxation for entrepreneurs operating in rural areas.
The Institute for Development and Innovation is committed to reducing regional disparities and improving conditions for young people to remain in the rural mountainous areas of southern Serbia.
The Start in Mountains project is implemented within the framework of the Interreg Europe 2021–2027 programme, co-financed by the European Commission.
