Page 25 - bne Magazine August 2022

bne August 2022 Companies & Markets I 25
Serbia’s strong tech sector growth defies brain drain
Clare Nuttall in Belgrade and Glasgow
International companies in search of tech talent and innovative local startups are converging in Serbia, an emerging high-tech hub that is especially strong in blockchain and game development.
The latest figures, announced by Nenad Popovic, Serbia’s Minister without portfolio in charge of innovations and technological development, on June 21, are startling: Serbian startups attracted over $135mn of investments in 2021 – more than six times as much as in the previous year. Meanwhile, the Digital Serbia Initiative (DSI), an NGO whose aim is to develop a globally competitive digital economy in Serbia, has its own database of startups that number over 350, and the organisation estimates there are many more, probably around 400-500 in total.
Alongside them are the international companies drawn to Serbia by the availability of tech talent and relatively low costs; DSI CEO Nebojša Bjelotomic cites costs that are two to three times lower than in major European cities combined with the quality of life in Belgrade. Among the major global companies in Serbia are Microsoft, Intel, Dell and a number of game developers such as Endava and UbiSoft.
While some Serbians are happy to work for international companies, others choose to strike out alone. This has created a
growing startup scene in the last few years. Many of these new startups are nurtured by the Impact Hub Belgrade, a co-working space and a business incubator. The hub is housed in what started out as the Palace of Co-operatives, then in the socialist era became a radio studio. Now furnished with co-working desks and coffee bar, the decor pays homage to this history, and during the recent lockdowns a 21st century take on the radio studio, the podcast.rs service, was launched.
Speaking to bne IntelliNews, co-founder Nenad Moslavac recalls just how much things have changed in Serbia’s startup scene over the last eight to 10 years. “Back in 2014 it was difficult to explain what a startup is; starting your bakery is not a startup,” says Moslavac. However, even now not everyone has the startup mindset. “Serbia, like many other European countries, is a rather comfortable place... being a tech engineer puts you in a very comfortable situation. It’s difficult to take off those comfortable shoes to become a startup founder.”
Other industry insiders also believe the attitude to entrepreneurship is changing. “I think we are going through a modification of attitude. On one side entrepreneurship is maybe not something very strongly engrained in the mentality of the Serbian people, but on the other side our younger guys grew up on Silicon Valley, seeing successful entrepreneurs riding off into the sunset ... this had an impact on Serbia,” says Bjelotomic.
Impact Hub Belgrade is helping to foster the tech ecosystem in Serbia. Photo: Impact Hub Belgrade
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