Most Montenegrin companies expect European Union membership to improve their business prospects, but a large majority say public institutions and companies remain underprepared to use EU funding and adapt to the regulatory demands of accession, according to a new survey of employers.
Around 69% of companies surveyed by the Montenegro Employers Federation said EU membership would have a positive or very positive effect on their business.
Confidence in implementation capacity was much weaker.
Only 10.1% of respondents said public institutions were mostly or very well prepared to support companies through the accession process, while 76.4% described institutional readiness as insufficient or only partial.
The gap is most visible in access to EU funding.
The survey gave Montenegro’s private sector a readiness score of just 43.3 out of 100 for absorbing European funds.
Only 17.4% of companies said they had successfully used an international or EU support programme, while 53.9% said they lacked sufficient information about available funding opportunities.
The figures point to a potential mismatch between the scale of the economic opportunity created by EU membership and the ability of domestic companies to capture it.
Montenegro is expected to gain access to substantially larger European funding programmes as accession advances, including support for competitiveness, digitalisation, energy efficiency, innovation, agriculture, infrastructure and regional development.
But companies need to identify programmes, prepare applications, provide co-financing and meet reporting requirements before those funds can be converted into investment.
For many smaller firms, those requirements remain a significant barrier.
The survey showed a wide readiness gap by company size.
Micro-enterprises scored only 36.1 points on the EU-fund readiness index, compared with 69.6 points for large companies.
That difference matters because small and micro businesses dominate Montenegro’s private sector.
If they remain unable to use European programmes effectively, a disproportionate share of accession-related funding could flow toward larger companies and public institutions with greater administrative capacity.
That could limit the broader productivity impact of EU membership.
Montenegro’s economy is made up largely of small businesses in tourism, trade, construction, transport and services.
Many operate with limited management teams and do not have dedicated staff for funding applications, compliance or project management.
Preparing an EU-funded project can require technical studies, procurement documentation, financial models and reporting systems that smaller companies may struggle to provide.
The issue is therefore not simply lack of financing.
It is also lack of capacity to access financing that already exists.
Businesses surveyed identified administrative simplification as their most important request.
Around 70.8% said they wanted less bureaucracy, while 64% called for greater support in accessing EU funds and 55.6% wanted clearer information on European regulations.
Those priorities suggest companies see the accession challenge as operational rather than ideological.
Most respondents expect membership to be positive.
Their concern is whether domestic institutions can translate EU rules and programmes into practical support that businesses can use.
That distinction will become increasingly important as accession moves closer.
EU membership will open new markets and funding channels, but it will also introduce tougher requirements in competition, environmental protection, labour standards, product compliance, state aid and corporate reporting.
Larger companies may be better positioned to absorb those costs.
Smaller firms could face more difficulty if regulatory obligations rise faster than support systems improve.
The survey therefore points to a two-speed risk.
Companies with stronger management, international experience and access to advisers may be able to use EU funding to modernise rapidly.
Smaller firms may struggle to keep pace, particularly in sectors where investment in digital systems, energy efficiency or product standards becomes necessary to remain competitive.
That could accelerate consolidation in parts of the economy.
It could also widen the productivity gap between larger and smaller companies.
The funding problem is particularly relevant because Montenegro already has access to a growing pool of international and EU-linked finance.
Programmes supporting innovation, energy efficiency, agriculture, SME development and infrastructure have expanded in recent years.
But utilisation often remains below potential.
The latest employer survey suggests the bottleneck is shifting from financing availability toward information, project preparation and administrative support.
That is a different policy problem.
It requires stronger advisory services, simpler procedures and better coordination between ministries, municipalities, chambers of commerce, employers’ organisations and financial institutions.
Banks could also play a larger role.
Many EU programmes require companies to provide part of the investment themselves before grants are paid.
That creates a financing gap for smaller firms even when an application is successful.
Guarantee schemes and co-financing products could help bridge that problem.
Montenegro’s accession process is also likely to increase demand for consultants, engineers, accountants and legal advisers capable of preparing EU-compatible projects.
That could create a new professional-services market around funding and compliance.
But excessive reliance on consultants would not solve the underlying capacity problem if companies and public institutions do not build their own expertise.
The survey’s relatively low confidence in state institutions is therefore important.
Only around one in ten companies believes public bodies are well prepared to support business through accession.
That suggests companies expect stronger coordination before membership rather than after it.
The government will need to provide clear sector guidance on which rules change, when they take effect and which financing programmes can help companies adjust.
Without that, accession could initially increase compliance costs faster than it increases access to capital.
Nearly seven in ten companies expect EU membership to benefit their business, but the market impact will depend on who can convert new funding and market access into investment fastest.
With private-sector funding readiness at only 43.3 out of 100, larger and better-prepared companies could capture a disproportionate share of the first accession-related investment cycle while smaller firms face higher compliance costs and tougher competition.
For Montenegro, that is the immediate business risk: European capital may become more available before much of the domestic corporate sector is ready to compete for it.
