MANAGEMENT AND TRUST DURING THE GLOBAL ECONOMIC CRISIS: THE CASE OF SERBIA

The paper analyzes the trust influence on management and business indicators of Belgrade entrepreneurs during the global economic crisis. The first chapter points out that entrepreneurs are exposed to significant non-market risks in countries with underdeveloped institutional infrastructure. Due to that fact, creation of business strategies is more difficult. Under the conditions of economic crisis, large number of decisions are made by the institutions that influence on the behavior of entrepreneurs, in order to seek answers for the crisis disturbances. In such conditions, solid stocks of social capital are of great importance for the stability of the economy and individual agents.In chapter 2 it was defined the term, structure and functions of social capital. Besides, it was considered the influence of social capital on the micro-economic sector. In chapter 3, it was measured institutional, financial and stakeholders trust of entrepreneurs and its impact on the investment trend, the volume of business and real salaries of micro and small enterprises. Based on empirical data, it was shown that low trust stocks have the negative influence on business indicators and development of firms.