Many companies in Montenegro are optimistic about the potential benefits of European Union membership, with a recent survey indicating that approximately 69% of firms believe it will positively impact their business. However, a significant portion of these businesses express concerns regarding the readiness of public institutions to effectively manage EU funding and meet the regulatory requirements associated with accession.
The survey conducted by the Montenegro Employers Federation revealed that only 10.1% of respondents felt that public institutions were adequately prepared to assist companies during the accession process. In contrast, 76.4%</strong% described the institutional readiness as either insufficient or only partially adequate.
Access to EU funding emerged as a critical area of concern, with Montenegro’s private sector receiving a readiness score of merely 43.3 out of 100 for securing European funds. Only 17.4% of companies reported successfully utilizing an international or EU support program, and 53.9%</strong% indicated a lack of sufficient information regarding available funding opportunities.
The findings highlight a disparity between the economic opportunities presented by EU membership and the ability of local firms to capitalize on them. As Montenegro progresses toward accession, it is expected to gain access to expanded European funding programs aimed at enhancing competitiveness, digitalization, energy efficiency, innovation, agriculture, infrastructure, and regional development.
However, companies must navigate complex application processes, co-financing requirements, and reporting obligations to convert these funds into tangible investments. For many smaller enterprises, these hurdles represent significant barriers.
The survey also indicated marked differences in readiness based on company size. Micro-enterprises achieved a low score of 36.1 points on the EU-fund readiness index, while larger companies scored 69.6 points. Given that small and micro businesses dominate Montenegro’s economy, their inability to effectively engage with EU programs could result in larger firms and public institutions absorbing most of the accession-related funding.
This scenario risks limiting the overall productivity benefits associated with EU membership. The Montenegrin economy is heavily reliant on small businesses across sectors such as tourism, trade, construction, transport, and services. Many of these firms operate with minimal management structures and lack dedicated personnel for funding applications or project compliance.
Assembling an EU-funded project typically requires comprehensive technical studies, procurement documentation, financial models, and reporting systems—resources that many smaller companies may find challenging to provide.
The issue extends beyond mere financing; it encompasses the capacity to access existing financial resources. Survey participants identified administrative simplification as their top priority for improvement. Approximately 70.8%</strong% expressed a desire for reduced bureaucracy, while 64%</strong% sought enhanced support for accessing EU funds and 55.6%</strong% requested clearer information on European regulations.
The responses suggest that businesses view the challenges associated with accession more as operational hurdles rather than ideological ones. Although there is widespread optimism regarding membership benefits, concerns persist about whether domestic institutions can effectively translate EU regulations into practical support for businesses.
This distinction will become increasingly pertinent as Montenegro approaches full EU membership. While new markets and funding avenues will open up, tougher compliance requirements in areas such as competition law, environmental standards, labor regulations, product certification, state aid rules, and corporate reporting will also be introduced.
Larger firms may be better equipped to absorb these costs compared to smaller enterprises that could struggle if regulatory demands escalate faster than institutional support improves.
The survey indicates a potential risk of a two-speed economy emerging within Montenegro. Companies with robust management capabilities and international experience may leverage EU funding for rapid modernization efforts, while smaller firms could lag behind—particularly in sectors requiring investments in digital technology or energy efficiency to stay competitive.
This situation could exacerbate existing disparities in productivity between larger and smaller enterprises within the region. The significance of addressing these funding challenges is underscored by Montenegro’s access to an expanding array of international and EU-linked financial resources aimed at supporting innovation, energy efficiency initiatives, agricultural projects, SME development, and infrastructure improvements over recent years.
Despite this potential for growth, actual utilization rates remain suboptimal. The latest employer survey suggests that bottlenecks have shifted from financing availability to issues related to information dissemination, project preparation assistance, and administrative support.
Tackling these challenges requires enhanced advisory services, streamlined procedures, and improved coordination among various governmental bodies—including ministries and chambers of commerce—as well as financial institutions. Banks may also play a crucial role in bridging financing gaps through guarantee schemes and co-financing products designed for smaller enterprises.
The ongoing accession process is likely to spur demand for professionals skilled in preparing EU-compatible projects—creating opportunities within the consulting sector focused on funding and compliance advisory services. However, relying solely on external consultants will not resolve underlying capacity issues unless both businesses and public institutions invest in building their own expertise.
The survey’s findings underscore a prevailing lack of confidence in state institutions’ preparedness to support businesses through the accession journey; only about one in ten companies believes public bodies are adequately equipped for this task. Consequently, there is an expectation among firms for stronger coordination prior to membership rather than after it has been achieved.
The government will need to provide clear guidance regarding impending regulatory changes and available financing programs essential for helping companies adapt effectively. Without this clarity, there is a risk that initial compliance costs may rise more quickly than access to capital improves.
Around 70% of surveyed companies anticipate positive outcomes from EU membership; however, the market impact will rely significantly on the speed at which firms can convert new funding opportunities into actual investments. With private-sector readiness currently assessed at only 43.3 out of 100, larger companies that are better prepared may disproportionately benefit from early accession-related investments while smaller firms face escalating compliance challenges amidst intensifying competition.
This presents an immediate business risk for Montenegro: European capital could become more readily available before many domestic companies are adequately positioned to compete for it.
