TBM Business Talks: The Business Community Needs Predictability and Cooperation with Institutions
Predictability means that changes occur in an expected manner. Regulatory changes on the path toward the European Union are an example of predictability. Everyone in the business community knows what to expect and is prepared to adapt their future operations to the EU.
The economy does not need immutability, but rather clear rules, predictability, and strong cooperation between institutions and the business community, said Ratko Nikolić, Chief Analyst of the Top Business Montenegro initiative and founder of BI Consulting, at the TBM Business Talks event in Podgorica.
Nikolić stated that the issue of business stability cannot be viewed solely through the lens of global disruptions, but also through internal weaknesses of the business environment in Montenegro, which, in his view, should not be a source of additional uncertainty for the economy.
According to him, the business community does not need an unchanging system, but the ability to recognize and plan for upcoming changes in a timely manner. These are the conditions that should enable businesses to plan and manage their operations more easily and to better withstand instability – he emphasized.
Nikolić recalled that change is an integral part of any business and that no entrepreneur enters the market expecting absolute stability.
– There is a universal definition that change is the only constant, and everyone entering business is prepared for it. The question is whether one should be prepared for all changes, or how to be prepared for those related to the business environment – said Nikolić.
He particularly stressed that predictability does not mean the absence of change, but rather that changes are implemented in an expected and transparent manner, which is especially important in the process of European integration.
– Regulatory changes on the path to the European Union are an example of predictability. Everyone in the business community knows what to expect and is ready to adapt their future operations to the EU. Predictability means that changes happen in an expected way – Nikolić explained.
He emphasized that strategic management of the economy подразumijeva a clear vision of development and directing business activities toward sectors that are more important for the country’s economic stability.
– When we talk about strategic management of the economy, we are referring to its structure, managing it in a way that directs business activity toward sectors and areas that are globally more necessary to us, given the high trade deficit and strong import dependence – said Nikolić.
Such an approach, he noted, contributes to greater stability of the business environment and enables businesses to plan development more easily.
– Strategic management significantly stabilizes business operations and increases the acceptability of many elements that make up the business environment. Under such conditions, it is easier to plan and predict. The key question is whether our economy is managed strategically or adjusted on the go – Nikolić assessed.
Speaking about the role of the state, he pointed out the risk that business expectations could be misdirected toward models resembling a directive economy, instead of creating a healthy market environment.
– As a society, we tend to call for certain state actions that somewhat resemble the directive economy we have already moved away from. In every segment of business, it is important to draw a line – the Government should contribute to the business environment, but not disrupt the market – Nikolić stated.
He concluded that stability cannot be built through unilateral actions, but only through a partnership between the business sector and institutions.
– The key lies in joint work and activities of both businesses and public institutions – Nikolić said.
Nikolić recalled that the TBM Business Talks event was organized with the aim of providing concrete answers to the most important challenges of modern business in Montenegro through open dialogue between representatives of the business community, institutions, the financial sector, and the IT community.
He added that the event in Podgorica is the first in a series of business gatherings that will be organized this year by the Top Business Montenegro initiative, which is entering a new phase of development.
– Instead of one central conference event, we will organize three structured regional events. The event in Podgorica is the first in that series, with additional events planned for the coast and the north of the country. In each of these, the business environment will be the main topic. Every year, we will continue to monitor it and provide insights, as it is one of the key elements for Montenegro’s economy. We will strive to highlight areas where we see potential for improvement. That is how we see our role, and that is how all our results are measured – Nikolić concluded.
