“I believe we need to create regional champions. What will we offer to our children in a region of 20 million people to keep them from going elsewhere? How are we going to keep them here?” were questions raised by Blaž Brodnjak. He added that bringing together leaders in the region is the key to establishing a Scandinavian model of cooperation, which he sees as very appropriate for the region. According to Dragan Marković, CEO of Triglav osiguranje Srbija, the better infrastructure is needed for closer integration of the Western Balkans into the European space that will attract foreign investment, as well as digitalisation and automation. He is convinced that the region must support this with appropriate educational programs.

Tine Kračun, the Director of ISR, said that Serbian companies have recently been among the largest investors in Slovenia, which shows that economic and other cooperation between the two countries is strengthening. “But there is a border between us. This is the EU border. It makes economic cooperation and logistics difficult. Regional cooperation can only be fully realised if the routes are modern and the borders are open for integration and trade.”

According to Mihailo Vesović, the Director of the Serbian Chamber of Commerce, the results of cooperation between Serbia and Slovenia in the past 10 years are visible. He emphasized the importance of working efforts for even closer mutual integration. “It is crucial that measures are taken to remove obstacles for even closer cooperation. The goal is to create free economic space on the model of, for example, European Free Trade Association (EFTA), which removes obstacles for cooperation between European countries.” He sees another advantage of closer integration of the region in the joint appearances of companies from Serbia and Slovenia in foreign markets, for example in Africa.

Blaž Brodnjak, President of the NLB Management Board, believes that the current generation of businessmen should not only have the desire but also the responsibility to connect the region more closely. “We need to create regional champions. What will we offer our children in a region of 20 million to keep them from going elsewhere? How are we going to keep them here? An important answer to this challenge is smart specialization,” is convinced Brodnjak. He added that bringing together leaders in the region, both from business as well as politics, is the key to establishing a Scandinavian model of cooperation, which he sees as very appropriate for the region.

Nada Drobne Popović, President of the Management Board of Petrol, is convinced that integration in the region cannot be fully realized if companies don’t perceive themselves as regional players. Petrol walks this talk. “We wish to invest in the potential in energy sector. We are strongly present in Slovenia and Croatia. In Serbia, we see great potential for additional growth in gas, hydrogen and investments in renewable resources,” she said. The President of the Management Board of on of the largest oil companies in the region also highlighted the personnel aspect of operating as a regional company: “We already have more employees outside Slovenia than in Slovenia, although we generate half of revenue in Slovenia. To be able to carry out the processes from home, we digitalised ourselves in 24 hours during the corona period. After the end of the corona crisis, we used this know-how to improve our processes. I believe that other countries are pleasant to live in, and we as a company must ensure adequate pay so that the workforce stays in the region,” said Nada Drobne Popović in a conversation moderated by Nikola Papak, representative of the Serbian Chamber of Commerce in Slovenia.

Every market in the region is relatively small, especially in relation to Europe, but if we perceive the region as one market, this changes, said Mihailo Janković, CEO of MK Group. “We depend on each other. It is not enough to recognize the region as a single space, we must act like it as well. Our company is present both in the EU and in the region. We are proving that not only EU companies are welcome in Slovenia, but also that Serbian companies can be a good employer,” said Janković, emphasizing the importance of closer political integration into the EU, which is extremely important for the Western Balkans. MG Group sees great potential in Slovenia, with more than 200 million euros that have been invested in it so far – and with an additional 300 million euros of investment planned. 

Marija Desivojević Cvetković, Senior Vice President for Strategy and Development at Delta Holding, says that in the region, in addition to the visible, there are also invisible borders, those in our heads. “It is clear that the only real path for the region is in the EU. Until that happens, states must act on their own. They need to establish a market that takes advantage of the same customer habits that undoubtedly exist thanks to a common past. “The Open Balkans initiative is welcome, but this process must be monitored by someone else. This could be Brussels. This way, the region will also catch up faster with the pace and direction in which the whole world is moving, “said Marija Dešivojević Cvetković.

“The right way is for this area as well as businesses operating in the region is to simplify everything they do as much as possible. Organizational structures, processes and other procedures. Just like in sports, you have to be fast in business. ”According to Nenad Miščević, CEO of the Nektar Group, a global company that is also present in Slovenia with its ownership in Fructal. Companies today have one common challenge, and that is inflation; Nektar Group, which operates in the food industry is of course also faced by it. “We cannot pass on the higher costs entirely to consumers. The company must also look for internal optimization and reserves,” pointed out Miščević, adding that they want to position Fructal as a premium brand in the food and beverage industry in the future.

Dušan Miličević, CEO of Comtrade Group, put the characteristic of resourcefulness in the region at the center of his thoughts. “The creativity this space possesses and which is very pronounced, for example, in sports, should be better used in the economy.” He pointed out that Serbia is among the leaders in the world in terms of the share of companies using cloud IT solutions. Integration seems extremely important to him. “We have to look at the region as one space and adjust the processes and the way we operate,” said Miličević.

Dragan Marković, CEO of Triglav osiguranje Srbija, presented his views on the integration of the Western Balkans from the point of the insurance industry. According to him, the first condition for closer integration is an even better infrastructure that will attract foreign investment. Marković also mentioned sustainable strategy and digitalisation as well as automation as important pillars. The region must promote these verticals through educational programs that adequately support the goals. “The insurance industry is an integral part of economic development. We must be prepared for the enlargement of the EU as best as we can be. During the corona crisis, it became clear that this region could help others as well. Serbia, for example, has donated the necessary vaccines to other countries.”

Slobodan Šešum, Acting Director-General of the Directorate for Economic and Public Diplomacy at the Slovenian Foreign Ministry, emphasized the importance of the region’s enlargement and integration into the EU to happen fast. It is the main export market for both Slovenia and Serbia. That is why it is important to remove the borders that hinder economic cooperation as soon as possible, is convinced Šešum, adding that a quarter of Slovenian companies plan to invest in Serbia and Croatia as well as in other countries in the region.

The NLB Group is joining the ABA League in the 2021/22 season and the cooperation between the two regional players, who are both leaders in sports and banking and financial sector will continue until at least 2025.

By entering this region’s most powerful basketball competition as a sponsor, the NLB Group has also become the general sponsor of the second division competition under the auspices of the ABA League which will from now on be called NLB ABA LEAGUE 2.

“We are more than just another financial group and as an institution of systemic importance we are not only interested in business topics exclusively. We want to create, enhance and connect the region of opportunities operated by the Group in various ways – also through sports. Basketball is a team sport that has written the most popular and inspiring stories in the region, telling us about winning and success, both with the national team and basketball clubs. By sponsoring the ABA League j.t.d., the NLB Group has proved once again that it knows the passion and desires of the region of opportunities, and that it speaks the same language and culture. Consequently, our Group understands and promotes what people in this region cherish. We are members of the same team. And the teamwork, bringing different communities, cultures and languages together to form a rock-solid whole, which is able to seize every opportunity through coordinated action, are the very values of the NLB Group,” said Blaž Brodnjak, CEO of the NLB.

Dubravko Kmetović, director of the ABA League: “On behalf of the ABA League j.t.d., I am happy and honoured to welcome (back) the NLB Group to our joint home of basketball. The NLB Group was with the ABA League j.t.d. at the very beginning, when this whole idea of ​​a regional basketball league came to life, and I am extremely happy to have this renowned banking and financial group again by our side.

Gecić Law is a prominent regional law firm that helps clients navigate through the complex legal landscape of the region across multiple practice areas. It is especially known for its expertise in EU law and international trade. As countries of the region open new chapters in their EU accession talks, Gecić Law relies on its creativity and in-depth knowledge of both legal and key business issues when providing innovative and practical solutions in the most complex of matters. Gecić Law is the only regional law firm that has continuously represented clients in crucial matters before international institutions, including the European  Commission, the Energy Community, the ECAA, and CEFTA.

We spoke to Bogdan Gecić, the founding partner at Gecić Law about the firm’s achievements and its strengths when advising diverse entities in the SEE region. He singled out innovation as the key ingredient to the firm’s success and the decision to expand into new practice areas such as ESG, one of the most pressing issues of our time. Gecić also shared his thoughts on how compliance with ESG demands may affect businesses and market dynamics in the region and beyond.

We are immensely proud of being named Law firm of the year: South Eastern Europe at The Lawyer European Awards 2021, in a new category encompassing a dynamic market of 150 million people, including Turkey and several EU members. This is not the first time we have been recognized by the preeminent judging panel, which includes experts from leading multinationals, such as Starbucks, GSK and Hugo Boss. Last year we were named Law firm of the year for Eastern Europe and the Balkans and we have repeatedly entered the European Competition or Antitrust Team of the Year – Top Five category, along with the most distinguished antitrust teams across Europe – for example together with Latham & Watkins, a team that represented Google. Our firm is also consistently recognized by elite global directories, including The Legal 500, Chambers and Partners and Benchmark Litigation.

The most important ingredient for our continued success is innovation, which is about continuous learning, discovery and adding value to our clients’ businesses. This leads us to expand into new practice areas, including ESG. We were the first independent law firm in the region to introduce services in this vital field. Forward-thinking global law firms, including Cleary Gottlieb, Clifford Chance and Linklaters have all understood the importance of ESG and we are glad to be in their company.

Our clients usually know that they will have to face changes as part of the EU accession. However, they are not always abreast with how these changes may affect their businesses and what the dynamics may be. Another set of issues arise from trade with EU countries.

The Green Deal will bring several potentially ground-breaking challenges, including the carbon border tax, which may have far-reaching consequences for the regional economies. ESG preparedness will have a pivotal impact on future financing (e.g., Green Bonds) as well as on the cost of operations and legal compliance. Companies may be forced to adjust their business models to remain competitive. We provide holistic assistance and help clients incorporate ESG into their overall business strategies. Those who understand this well and act quickly will be the winners of the new era.

Our experience shows that most markets in the region face similar challenges with ESG. As we saw in Denmark, acting on climate change could increasingly become mandatory. Regional markets moving through the EU accession process may also have to comply with the new rules soon. As the ESG movement gains momentum, we aim to provide solutions tailored to the specific goals and needs of each business. We first assess and analyse the risks a client may be exposed to and then advise on how to best adapt, from a regulatory, strategic, financial and operational standpoint. In the implementation, we prioritize between the“must-have”and the“nice-to-have” but we do provide a clear roadmap for each area.

KEY TAKEAWAYS

Gecić Law aims to provide solutions that are tailored to the specific needs of each business: first by assessing and analysing the risks a client may be exposed to, and then by advising on how to best adapt – from a regulatory, strategic, financial and operational standpoint.

The sooner, the better. Some businesses still do not realize that failing to prepare may significantly affect their ability to compete in the market, sell their products and have access to financing.

Those who understand this well and act quickly will be the winners of the new era.

Many businesses have a short-term approach, seeing change as an additional cost, avoiding and postponing action. Some still do not realize that failing to prepare may significantly affect their ability to compete in the market, sell their products and have access to financing. Regulators, investors, creditors, customers, and other key stakeholders will insist more and more on responsible business conduct. We advise clients on EU rules on ESG that will define international trade in the years to come, impacting exporters and entire supply chains in the Western Balkans and beyond.

Nevertheless, our region is also showing remarkable progress, as major cities, including Belgrade, expand their supporting infrastructure to accommodate the latest environmental trends in personal mobility, waste management and renewable energy supply.

We are thrilled to be part of this process, as we also take on board ESG standards. Wouldn’t it be completely inauthentic if we did not adhere to what we preach? We incorporate these principles into our core values and our everyday work. Our active and collaborative approach to making a positive contribution is reflected in our work with the Responsible Business Forum.

We are also a founder and proud supporter of the annual Taboroši Scholarship. We stand for an inclusive and diverse working environment, as we strongly believe that different  perspectives and experiences enrich our business in a meaningful way.

Slovenia boasts an extremely diverse support environment for start-ups and fast-growing companies. Although it is a small country, Slovenia generates an enviable number of innovative start-ups, a large proportion of which achieve globally successful breakthroughs. The state plays an important role in the development and the global competitiveness of the supportive environment, both through substantive backing and funding.

In addition to talented individuals, access to capital is essential for the development of such ideas, throughout all stages of a company’s development. Global rapid growth often requires investments of millions of euros. “Banks do not usually finance such projects due to the high risk involved, so venture capital is key. Without start-up investment and access to capital, even the most promising ideas have little chance of coming to life,” says Kostanjevec.

“The arrival of the corona has exposed many social structural weaknesses that were previously unconscious or more hidden. Overnight, it became even clearer how important are innovation, sustainability, green approaches, social responsibility, and adaptability to new circumstances. Companies have been forced to innovate to a higher degree, to think outside the box, to adapt their business models, and to digitise,” remarks Kostanjevec. He adds that start-up investments are important not only in stimulating and bringing about the innovation born in start-ups, but also in helping existing companies innovate and adapt their business models. This is where start-up investments can play an important role, provided, of course, that it is not about solving unpromising situations, but about newly discovered opportunities,” says Kostanjevec.

Entrepreneurial success requires a lot of support on different levels: at school, in acquiring knowledge, and in developing both creativity and an entrepreneurial mindset. Later on, when developing an innovative idea, mentors and advisors are essential. Companies need proper interlocutors, often with access to research equipment, capital, business premises, and other infrastructure. “Same as with top athletes, it is difficult for entrepreneurs to succeed on their own, which is why support is a must. Without the right support, there would be significantly less entrepreneurial success,” says Kostanjevec.

He gives the example of how entrepreneurship is supported in the early stages by SPIRIT Slovenia. “We have two strong plaftorms. The first is the national SPOT system, which brings together a range of support services offering free help, information and advice to businesses. The second platform is SIO, which connects business and university incubators, accelerators, technology parks, and other environments that enable the creation and growth of new businesses.” More than 120 mentors and 200 business advisors are connected to SIO centres. Each year, they organise more than 600 workshops, lectures, startup weekends, informal meetings and other training events, supporting more than 100 entrepreneurs on their entrepreneurial journey.

“We can proudly say that SPOTs and SIOs represent a solid foundation and a central infrastructure for the creation of new breakthrough entrepreneurial stories in Slovenia,” says Kostanjevec.

But SPIRIT Slovenia’s activity does not stop outside domestic borders. They are also actively involved in the entrepreneurial environment of Western Balkans countries. “We are aware that we should not operate in a bubble, but cooperate internationally. That is why we have strong links and cooperation with the countries of the Western Balkans. Not only at an umbrella level, but also at the level of companies, organising delegations, visits, promoting international trade … It is important to underline the importance of sharing knowledge, good practices and connecting entrepreneurs. The Slovenian entrepreneurial ecosystem, including SPIRIT Slovenia, has the desire and ambition to see even more of this kind of networking in the future,” explains Kostanjevec.

“In the Western Balkans, we can provide good entrepreneurial support to innovative entrepreneurs, and we can also find niches where we are already leaders. We are very proud that Slovenia is becoming an European leader in the number of the so-called ‘hidden champions’ – many Slovenian companies are world leaders in specific areas in high-tech and niche technologies,” says Kostanjevec, adding that this knowledge, case studies, technology, along with all the support services, are now becoming increasingly available the Western Balkans, to entrepreneurs and to individuals striving to enter the world of entrepreneurship.