Regional Economic Development Agency for Šumadija and Pomoravlje LTD was established in the process of transformation of Regional Agency for Small and Medium-sized Enterprises Development “Šumadija” that has realized the need for support in SME sector back in 2002. After the second operating year a three-year development strategy was developed and its aims brought about the transformation of Regional Agency for Small and Medium-sized Enterprises Development “Šumadija” into Regional Economic Development Agency for Šumadija and Pomoravlje. Contribution to sustainable development of SME sector through entrepreneurship development and support of small and medium-sized enterprises is reflected in the activities of the Department for SME sector development as one of the top five priority development areas.

Support system for SME sector evolved together with the process of institution development:

• 2002 - Promotion of entrepreneurship and the concept of  providing professional service
• 2003 – Providing professional service and creating a client database
• 2004 – Positioning on the market and expanding the partnership network
• 2005 – Development of new services and strategies
• 2006 – Development of strategic mechanisms for SME sector
• 2007 – Development and implementation of projects in the field of strategic mechanisms

SMEE sector represents a significant pillar of economic development, having in mind that SME is 99.8% of all business subjects, which make 68% of total turnover, 58% of gross value added and hold 67% of the people employed in economy sector. Further growth of SME sector and its significance for economy in general shows that there is an obligation of creating frameworks for sustainable, internationally competitive and export-oriented sector, which requires:

• Financial strength and negotiating power
• Planned approach to development
  
• Specialized knowledge and skills

Main reasons for supporting SME sector are:

• Entrepreneurship is the key for the vitality of a society/territory
• Flexible nature
• Efficiently generates new employment opportunities
• Innovative capacities

Department for SMEE sector development through its activities contributes to promotion of entrepreneurship and accomplishing defined strategic objectives:

• Development of financial instruments for support of SME
• Joining national entrepreneurship development programmes
• Development of entrepreneurship  infrastructure
• Monitoring the sector
• Joining international programmes that serve to support entrepreneurship development
• Promotion and development of entrepreneurship

Accomplishing these objectives, Department for SME sector Development recognizes its target group as a key segment in the process of planning local and regional development by creating local and regional entities and support mechanisms organized in a network through development and implementation of the programmes and projects developed on the basis of accurately defined needs.

Department for SMEE sector development provides support for small and medium-sized enterprises and entrepreneurs that can be categorized as:

• Operational support
  
• Strategic support

Operational support relates to everyday work with the clients, while strategic support is, primarily, reflected in support of the development of entrepreneurship infrastructure.