Stages in the investment process and financial analysis of investments in the field of business start-up and development
Modern engineers, managers, workers and innovators are characterized by:
Creativity in the production of ideas for increasing profits, savings, environmental protection, etc.
Ability to search for scientific research papers – for example, “Kobson” (available free of charge
on the network of the University of Novi Sad) and protected intellectual property: patents, trademarks,
industrial design, the topography of semiconductor products and copyrighted works (international databases
data available on the website of the Intellectual Property Office of Serbia)
Ability to research the market in order to understand the capacity of the planned market and competition (on
example of searches of the site “National market of goods and services”)
Knowledge of legislation in the field of investment
Ability to express the financial effects of proposed investments, and
Investment management skills from idea creation to investment realization.
Types of investments and legislation
According to the Law on Planning and Construction, investments by nature can be construction, reconstruction, adaptation and rehabilitation.
Construction
It includes investments that include the construction of facilities.
Reconstruction
It includes works that change the size and appearance of buildings, as well as the dimensions and significant technical characteristics of the equipment.
Adaptation
It includes works that do not change the size and appearance of the facilities, nor the dimensions and important technical characteristics of the equipment.
Rehabilitation
It includes works that are caused by a breakdown or breakdown of facilities or equipment
Note:
In the case of larger investments, which imply construction or reconstruction, which imply changes in the facility and/or technological process, designers engaged in the development of the preliminary or main project must have a state license.
Before starting the works, they should be reported to the construction inspection.
Legislation
The procedure of the realization of investments in Serbia should be carried out in accordance with:
Law on Planning and Construction (Official Gazette of RS, No. 72/2009),
Law on Environmental Impact Assessment (Official Gazette of RS, 36/2009),
Law on Energy (Official Gazette of RS, No. 57/2011, 80/2011 – amended and 93/2012),
Law on Waste Management (Official Gazette of RS, 36/2009),
Law on Concessions,
For public companies and institutions and with the Law on Public Procurement (Official Gazette of RS, No. 116/2008) and the Law on Public Debt (Official Gazette of RS, 61/2005, 107/2009 and 78/2011). with EU directives (standards), Russian standards, etc.
Stages in the investment process and financial analysis positions
Note: The activities are in line with the current Law on Planning and Construction.
Activities that also include financial analysis are shaded in yellow.
The activity shaded in blue is not covered by the laws, but it is recommended in order to assess the state of the art, the market, possible sources of financing and obtaining permits.
Stages in the investment process and financial analysis of investments in the field of business start-up and development
Modern engineers, managers, workers and innovators are characterized by:
Creativity in the production of ideas for increasing profits, savings, environmental protection, etc.
Ability to search for scientific research papers – for example, “Kobson” (available free of charge
on the network of the University of Novi Sad) and protected intellectual property: patents, trademarks,
industrial design, the topography of semiconductor products and copyrighted works (international databases
data available on the website of the Intellectual Property Office of Serbia)
Ability to research the market in order to understand the capacity of the planned market and competition (on
example of searches of the site “National market of goods and services”)
Knowledge of legislation in the field of investment
Ability to express the financial effects of proposed investments, and
Investment management skills from idea creation to investment realization.
Types of investments and legislation
According to the Law on Planning and Construction, investments by nature can be construction, reconstruction, adaptation and rehabilitation.
Construction
It includes investments that include the construction of facilities.
Reconstruction
It includes works that change the size and appearance of buildings, as well as the dimensions and significant technical characteristics of the equipment.
Adaptation
It includes works that do not change the size and appearance of the facilities, nor the dimensions and important technical characteristics of the equipment.
Rehabilitation
It includes works that are caused by a breakdown or breakdown of facilities or equipment
Note:
In the case of larger investments, which imply construction or reconstruction, which imply changes in the facility and/or technological process, designers engaged in the development of the preliminary or main project must have a state license.
Before starting the works, they should be reported to the construction inspection.
Legislation
The procedure of the realization of investments in Serbia should be carried out in accordance with:
Law on Planning and Construction (Official Gazette of RS, No. 72/2009),
Law on Environmental Impact Assessment (Official Gazette of RS, 36/2009),
Law on Energy (Official Gazette of RS, No. 57/2011, 80/2011 – amended and 93/2012),
Law on Waste Management (Official Gazette of RS, 36/2009),
Law on Concessions,
For public companies and institutions and with the Law on Public Procurement (Official Gazette of RS, No. 116/2008) and the Law on Public Debt (Official Gazette of RS, 61/2005, 107/2009 and 78/2011). with EU directives (standards), Russian standards, etc.
Stages in the investment process and financial analysis positions
Note: The activities are in line with the current Law on Planning and Construction.
Activities that also include financial analysis are shaded in yellow.
The activity shaded in blue is not covered by the laws, but it is recommended in order to assess the state of the art, the market, possible sources of financing and obtaining permits.
POTENTIAL SOURCES OF FINANCING
Loans from commercial banks
It is the most common and most expensive form of financing.
Short-term loans (up to one year) – working capital is usually financed
Long-term loans (over one year) – investments in fixed assets.
Funds
They are financed from the budget.
Unlike banks, they are not profitable institutions but put the interest of the social community in the foreground (increasing the number of employees, especially in underdeveloped areas, infrastructure development, solving environmental problems, etc.).
Financing through joint ventures
It represents the best economic type of financing if the investor company does not have enough own funds. The interests of the co-investors are realized by the contract through the distribution of profits in the proportion of the invested funds.
Financing through recapitalization
It is characteristic of joint-stock companies. It is done through the issuance of shares in order to increase capital, ie additional long-term sources of financing.
Investments of other legal entities and individuals
They are characteristic of primary agricultural producers. Lenders are usually processors who thus provide themselves with the necessary raw materials for processing. This type of financing has a short-term character.
Financing through commodity exchanges
It is characteristic of agriculture. The commodity exchange has the character of a source of financing if it organizes the sale of agricultural products during their production, ie. before the products reach the market. In our country, stock exchanges mainly trade in finished products, which is not considered financing, but the realization of finished products.
Government subsidies
These are grants awarded during the life of the project, which serves to achieve cost-effective production. They are intended for types of products for which the state has an interest in being produced in certain quantities because they have wider social and social consequences (primary agricultural production, livestock, milk,… ..)
Incentives for investment in renewable energy sources
In the investment phase
Loans with stimulative interest, longer repayment period and grace period, but these loans are only occasionally current.
In the operation phase of the plant
Serbia
Feed-in tariffs for the production of electricity from renewable sources.
European Union
Feed-in tariffs for the production of electricity from renewable sources.
Green certificates to stimulate electricity production (each user
renewable energy sources receive certificates), and users of fossil fuels must buy the appropriate number of certificates each year, or pay some kind of penalty, which is higher than the value of the purchased certificates. Certificates are sold and bought on the green certificate exchange.
CO2 certificates (carbon credits) to encourage reduced carbon emissions.
Note: Each EU country regulates this area in the way it considers most efficient, and certificates can be traded, ie. to be sold or bought outside the borders of states, their price changes depending on supply and demand.
Where to look for sources of funding
The website of the Government of the Republic of Serbia contains a “Guide through potential domestic and foreign sources of funding” for projects of NGOs, local governments, small and medium enterprises and entrepreneurs. “
You can also “go” to the sites of banks, funds and numerous agencies that monitor monetary policy.
POTENTIAL SOURCES OF FINANCING
Loans from commercial banks
It is the most common and most expensive form of financing.
Short-term loans (up to one year) – working capital is usually financed
Long-term loans (over one year) – investments in fixed assets.
Funds
They are financed from the budget.
Unlike banks, they are not profitable institutions but put the interest of the social community in the foreground (increasing the number of employees, especially in underdeveloped areas, infrastructure development, solving environmental problems, etc.).
Financing through joint ventures
It is the economically best type of financing if the investor company does not have enough own funds. The interests of the co-investors are realized by the contract through the distribution of profits in the proportion of the invested funds.
Financing through recapitalization
It is characteristic of joint-stock companies. It is done through the issuance of shares in order to increase capital, ie additional long-term sources of financing.
Investments of other legal entities and individuals
They are characteristic of primary agricultural producers. Lenders are usually processors who thus provide themselves with the necessary raw materials for processing. This type of financing has a short-term character.
Financing through commodity exchanges
It is characteristic of agriculture. The commodity exchange has the character of a source of financing if it organizes the sale of agricultural products during their production, ie. before the products reach the market. In our country, stock exchanges mainly trade in finished products, which is not considered financing, but the realization of finished products.
Government subsidies
These are grants awarded during the life of the project, which serves to achieve cost-effective production. They are intended for types of products for which the state has an interest in being produced in certain quantities because they have wider social and social consequences (primary agricultural production, livestock, milk,… ..)
Incentives for investment in renewable energy sources
In the investment phase
Loans with stimulative interest, longer repayment period and grace period, but these loans are only occasionally current.
In the operation phase of the plant
Serbia
Feed-in tariffs for the production of electricity from renewable sources.
European Union
Feed-in tariffs for the production of electricity from renewable sources.
Green certificates to stimulate electricity production (each user of renewable energy sources receive certificates), and users of fossil fuels must buy the appropriate number of certificates each year, or pay some kind of penalty, which is higher than the value of the purchased certificates. Certificates are sold and bought on the green certificate exchange.
CO2 certificates (carbon credits) to encourage reduced carbon emissions.
Note: Each EU country regulates this area in the way it considers most efficient, and certificates can be traded, ie. to be sold or bought outside the borders of states, their price changes depending on supply and demand.
Where to look for sources of funding
The website of the Government of the Republic of Serbia contains a “Guide through potential domestic and foreign sources of funding” for projects of NGOs, local governments, small and medium enterprises and entrepreneurs. “
You can also “go” to the sites of banks, funds and numerous agencies that monitor monetary policy.
