Abstract:

The current world economic crisis is one of the most destructive in the last century, and as such it has a negative impact on the overall world economic system, on individual national economies and especially on transition economies, such as that of Serbia. The experience of developed countries indicates the importance of small and medium enterprises in the process of fostering economic development. The current economic crisis is having a negative effect on the transitional economy that is Serbia. The textile industry is the most vulnerable to crisis, and output must be sought in the rapid inclusion of small and medium enterprises in economic trends and in the encouragement of faster development. Modern market textile business enterprises in Serbia, especially in times of economic crisis, are characterised by negative aspects that are reflected in the poor position of textile companies in the global market scene, in reduced competitiveness as well as in the lack of technology, trained staff and standards. The textile industry as a branch of the economy is likely to increase production as well as exports and to overcome the economic crisis because small and medium enterprises in the textile industry have a mechanism to better withstand global economic crisis.