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The COVID-19 crisis has serious consequences for the economies of the Western Balkans, because at the same time prices and quantities of production are determined at the level of the mentioned countries. The SME sector (hereinafter referred to as SMEs) is an increasingly important segment of the economic development of each country and pleads to become a key driver of development and employment. The development of small and medium enterprises is a basic factor of any modern economy, because they stimulate private ownership and entrepreneurial skills. They are flexible to change supply and demand in the market, create employment, promote the diversification of economic activities, support sustainable growth and make a significant contribution to exports and trade. Given the strength of the SMEs in terms of job creation, innovation growth, it is important to encourage and preserve them in times of this scourge, through appropriate provisions in certain legal solutions at the national level, as well as adequate measures to preserve these treasures. The state and local self-governments are expected to think strategically and take active action, which will be aimed at creating conditions for easier business operations and building a business environment that is stimulating, permanent and predictable for the development of the SMEs.

The impact of Covid-19 on the economy of montenegro with special reference to the business of small and medium enterprises