Analysis of factors influencing cluster establishment in the Timok forest area in Serbia

Abstract

In accordance with the political and socio-economic changes in Serbia during the transition period, which started in 2000, the forestry sector was reformed. The privatization of certain activities within forestry resulted in the establishment of a significant number of private forest-based enterprises. Although a large number of SMEs perform their activities in the Timok forest area, still, there is no interest organization of entrepreneurs in forestry in this region. This paper aims to analyze the external and internal factors which have influence on a possible establishment of a cluster organisation in the Timok forest area. The external factors are forest resources in the studied area, policy framework and support measures. The internal factors are the special characteristics of small-scale forest-based enterprises, the entrepreneurs' knowledge about the concept of clusters and the attitudes of entrepreneurs and decision-makers toward the possibility of cluster establishment. The paper uses the results of a research project on the development of small scale forest-based enterprises and cluster establishment in the Timok forest area. The research was conducted in Eastern Serbia in 2009 and 2010, 138 entrepreneurs were surveyed and 23 decision makers were interviewed. The survey shows that the entrepreneurs have little knowledge about that concept but support the idea of clustering. It can be concluded that the most important measure to support a possible cluster would be the provision of information among the entrepreneurs in the region.