3.2 Administration and governance
1. Governance
2. Cross-sectoral cooperation Governance
In Montenegro, tackling youth unemployment and improving youth employment opportunities are recognized as national priorities. This commitment is evident in various governmental strategic documents, research studies, and concrete support measures aimed at enhancing youth employment.
There is a broad consensus among state institutions regarding the importance of this issue, and numerous stakeholders have taken an active role in pursuing these goals. While these efforts are undoubtedly commendable, there is a noticeable lack of comprehensive and systematized information regarding the full scope of youth-focused initiatives implemented and financed by the Government of Montenegro - particularly in terms of the number of beneficiaries and the level of financial investment involve( source: Youth Employment Policy in Montenegro, Employment and Social Affairs Platform (ESAP), a regional project of the Western Balkans funded by the European Union – Expert Analysis in Montenegro)
Ministries that are involved as main actors in the creation of policies in the field of employment and entrepreneurship for young people are:· Ministry of Labour, Employment and Social Dialogue - https://www.gov.me/mrzs
- Ministry of Social Welfare, Family and Demography - https://www.gov.me/mssd
- Ministry of Finance - https://www.gov.me/mif
- Ministry of Education, Science and Innovation - https://www.gov.me/mps
- Ministry of Economic Development - https://www.gov.me/mek
- Ministry of Human and Minority Rights - https://www.gov.me/mmp
- Ministry of Sports and Youth https://www.gov.me/cyr/ms
- Ministry of Agriculture, Forestry and Water Management https://www.gov.me/cyr/mpsv
Several examples of support provided by the relevant ministries:
- Ministry of Labour, Employment and Social Dialogue is responsible for preparing proposals for regulations in the field of labor relations, the labor market, and social policy. The Ministry supervises the Employment Office, the Social Security Administration, the Labor Fund, and social and child welfare centers and institutions. It is also responsible for drafting strategic documents - https://www.zzzcg.me/wp-content/uploads/2022/02/predlog-nacionalne-strategije-zaposljavanja-2021-2025-s-predlogom-akcionog-plana-zaposljavanja-za-2021-godinu.pdf.
- The Ministry of Sports and Youth plays a key role in shaping and implementing policies aimed at improving the position of young people in Montenegro. Its work includes initiating and carrying out measures that promote the development of sports, as well as enhancing youth policy at both the national and local levels. The Ministry also fosters cooperation with non-governmental organizations, business associations, and the media, while actively promoting non-formal education and supporting the operation of youth services. More information is available on the official website of the Ministry of Sports and Youth.
The Ministry of Agriculture, Forestry and Water Management provides continuous support to young entrepreneurs through various programs and public calls, with the goal of strengthening their role in developing sustainable agriculture and the rural economy. Through the Public Call for the Development of Young Farmers’ Businesses for 2024, young people aged 18 to 40 are eligible for co-financing of business plans up to €8,000, along with mentoring support during implementation. (source: https://www.gov.me/clanak/javni-poziv-za-dodjelu-podrske-razvoju-poslovanja-mladih-poljoprivrednika-za-2024-godinu). Additionally, through Direct Payments for Young Farmers, the Ministry supports the purchase of seedlings, greenhouses, equipment, and agricultural machinery.
A notable example of sector-specific support includes the program for young beekeepers, which provided starter beehives and training workshops. Furthermore, under the EU-funded IPARD III programme, young producers can access funding for agricultural equipment, farm modernization, agrotourism, and food processing.
These initiatives represent a concrete contribution to strengthening the economic potential of young people in agriculture, empowering them to pursue independent entrepreneurship and contribute to the development of their local communities.
- The Ministry of Economic Development deals with improving competitiveness, the investment environment and cooperation with the business community. It improves the business environment, facilitates the business of small and medium-sized enterprises and strengthens entrepreneurship. It creates favorable business climates and conditions that will lead to the establishment of modern Montenegrin industry. It strategically plans the development of tourism in our country and develops a sustainable, green, smart and inclusive, year-round tourism product in accordance with modern trends. Other actors involved in the implementation of activities in the field of employment and entrepreneurship for young people are:1. Employment Office of Montenegro https://www.zzzcg.me/o-nama-detalji/ The Employment Agency of Montenegro is a legal entity that has the status of a state fund and performs activities that include jobs related to employment established by the Law on Employment Mediation and Rights during Unemployment, other regulations and the Institute's Statute, as tasks from delegated competence. The institute also serves for various training and various support programs for young people.2. Union of Free Trade Unions https://usscg.me/ A trade union is a legal entity which, unlike a corporation, is managed in accordance with democratic principles (according to the rule one member, one vote). It is an organization of employed workers founded with the aim of negotiating with the employer and choosing a better status and protection of the rights of employees, that is, to improve the standard of living of employees.
3. The Development Bank of Montenegro - https://www.rb.me/clanak/opste-informacije-o-osnivanju-rbcg-ad
The Development Bank of Montenegro (DBCG) is a state-owned financial institution established to support sustainable economic development through targeted financial support and specialized services. Its core mission includes stimulating the growth and resilience of micro, small, medium, and large enterprises, financing infrastructure and green economy projects, and fostering innovation and digital transformation. A key priority of the Bank is promoting employment by supporting job-creating investments and providing access to finance for entrepreneurs, start-ups, and socially responsible business initiatives.
In addition to offering loans, guarantees, and factoring services, the Bank also provides export insurance, supports projects of local, regional, and national importance, and promotes social entrepreneurship and self-employment. It may operate directly or through cooperation with licensed credit institutions in Montenegro. Importantly, the Development Bank does not operate with the primary goal of making profit, but rather as a strategic instrument for strengthening economic competitiveness, financial inclusion, and job creation across the country.
4. Union of employers - https://poslodavci.org/en/ UPCG is the umbrella organization of employers in Montenegro. (UPCG) has been a representative employer organization in Montenegro since 2005. It cooperates with the International Labor Organization (ILO) according to whose principles and standards it operates, and it is a member of: IOE - International Organization of Employers and Businesseurope - Association of Employer Organizations of Europe. UPCG is a member of the Social Council at the national level, and carries out special activities in the process of forming local Social Councils.5. Career centers https://www.ucg.ac.me/rektorat/karijera Career centers represent a support service that serves to improve students' competencies, especially in the development of their practical skills with the aim of better preparation for the labor market and encouraging the development of entrepreneurial awareness, but also support high school students in choosing a future vocation and preparing for the academic environment. Career teams were formed within primary and secondary schools (PP service and professors).6. CIPS https://www.zzzcg.me/cips-centri-za-profesionalno-informisanje-i-savjetovanje/ The establishment of centers for professional information and counseling (CIPS) at the Employment Office is a further step towards involvement in regional projects and approximation to European standards.The main purpose of such centers is to prepare information that can be useful when planning a career. CIPS also provides advisory services and, in cooperation with schools, conducts workshops for students and parents.CIPS is a place where users can get free information that can be useful in career planning. 7. Local governmentsThe entrepreneurship development program is represented in the framework of the work of local self-governments in Montenegro. This Program is aligned with the strategic plans for the development of local self-governments, which, in addition to the Entrepreneurship Development Program, is also in line with the following national and European strategic documents, such as:Development directions of Montenegro, Strategic guidelines for the development of SMEs 2018-2021, Strategy for the development of MSMEs in Montenegro for the period 2018-2022, Strategy for lifelong entrepreneurial learning 2020-2024, Program for the accession of Montenegro to the European Union 2020-2022, Strategy Europe 2020 and the Small Business Act. 8. Chamber of Commerce of Montenegro https://komora.me/ The Chamber of Commerce of Montenegro is an independent, business, professional and interest organization that is independent in its work. The main goal of the Chamber of Commerce is to represent and achieve the common interests of the members of the Chamber of Commerce, that is, the entire Montenegrin economy. The Chamber of Commerce is an institutional partner of the Government of Montenegro, it cooperates with the Parliament of Montenegro, state administration and local self-government bodies. The Chamber actively supports and encourages youth entrepreneurship, and the best example of this is the cooperation agreement signed by the Chamber of Commerce and the Union of Young Entrepreneurs of Montenegro at the Conference on the Economy of Montenegro 2022 (https://rthn.co.me/podrska-mladima-kroz-sporazum-privredne-komore-i-unije-mladih-preduzetnika/)
9. Innovation Fund of Montenegro - https://fondzainovacije.me/o-fondu/
The Innovation Fund of Montenegro is a specialized national institution that brings together internal and external experts in the fields of research and development, technology transfer, EU funding, financial management, and project evaluation. The Fund also monitors projects essential to the implementation of government programmes aimed at increasing the technological capacity of Montenegrin enterprises.
One of the Fund’s key roles is to promote technology transfer and the commercialization of innovations. Through a wide range of programmes, the Fund facilitates stronger collaboration between academia and the private sector, while encouraging higher levels of innovation within the business community.
Recognizing the importance of innovation for economic development and competitiveness, the Government of Montenegro has launched a number of strategic measures to build and strengthen the national innovation ecosystem. A major step in this direction was the establishment of the Innovation Fund, tasked with coordinating, implementing, and financing national innovation policy measures.
As the central government institution for innovation, the Innovation Fund is responsible for the implementation of innovation policy programmes targeting micro, small, and medium-sized enterprises, as well as for supporting the transfer of technology from scientific and research institutions to the market.
10. Non-governmental organizations dealing with employment and entrepreneurshipNon-governmental organizations in Montenegro deal with entrepreneurship through improving the skills of young people, contributing to the development and creation of innovative entrepreneurial activities for young people in order to generate new jobs and incentives for further learning and employment in the long term. Most of the activities relate to the improvement of knowledge, skills and competences of young people for employability and the realization of their own business ideas, continuous mobility on the labor market and even development of entrepreneurship at the level of all regions of Montenegro.Cross-sectoral cooperation
Strengthening Youth Employment through Cross-Sectoral Policy Efforts in Montenegro
Identifying and addressing the barriers young people face such as inadequate education, lack of practical experience, and regional disparities is a key priority of public policy in Montenegro. The Government is investing considerable effort to enhance interinstitutional cooperation, involving both governmental bodies and other stakeholders, to improve the effectiveness of youth employment policies.
In line with this, the Employment Action Plan for 2025 envisages the collaboration of multiple institutions, including:
- Ministry of Labour, Employment and Social Dialogue
- Ministry of Social Welfare, Family and Demography
- Ministry of Finance
- Ministry of Education, Science and Innovation
- Ministry of Economic Development
- Ministry of Human and Minority Rights
- Employment Agency of Montenegro
- Social Council
- Centre for Vocational Education
- Chamber of Commerce of Montenegro
- Development Bank of Montenegro
- Institute for Education
- Innovation Fund of Montenegro
- Local Employment Partnerships
For each individual activity, the institution responsible for its implementation is clearly indicated. Due to the nature of many activities, a significant number require joint implementation by two or more institutions. To ensure clarity, the coordinating institution is listed first, followed by other institutions whose involvement is either essential or contributes to more effective implementation and improved outcomes.
In addition, at the end of 2024, Montenegro adopted the Youth Guarantee Implementation Plan through 2026. The programme aims to provide all young people with a good-quality offer of employment, continued education, training, or an internship within four months of leaving education or becoming unemployed. This initiative also introduces key innovations in the digitalization of the Employment Agency and promotes stronger cross-sectoral collaboration to foster a more supportive environment for youth employment.
Several ministries also implement public calls and funding schemes aimed at empowering youth. For example, the Ministry of Sports and Youth supports youth-led initiatives through national programmes focused on sports, culture, innovation, and entrepreneurship. These programmes are designed to promote youth participation, creativity, and non-formal education. Similarly, the Ministry of Agriculture, Forestry and Water Management provides dedicated public calls for young farmers, offering both financial and mentoring support for business development in agriculture. Additionally, the Ministry of Culture and Media regularly issues calls targeting young people in the fields of culture and cultural entrepreneurship, encouraging youth engagement in creative industries and supporting innovative cultural initiatives.
In the field of education, the Ministry of Education, Science and Innovation provides support to young people through various public calls, research scholarships, and funding opportunities aimed at furthering academic and scientific development.
Montenegro’s cross-sectoral framework for youth support also includes key advisory bodies. The Council for the Rights of the Child, composed of representatives from various ministries and civil society, ensures a systematic approach to protecting the rights of children and youth. More information is available at: Council for the Rights of the Child.
Furthermore, the Social Council of Montenegro—a tripartite body comprising representatives of the government, employers, and trade unions—serves as a platform for dialogue on employment, wages, working conditions, and broader economic and social issues. For more details, see: Social Council of Montenegro.
Montenegro also actively cooperates with international partners such as UNICEF, UNESCO, UNDP, OSCE and others in developing comprehensive youth-focused programmes addressing digital skills, mental health, and economic empowerment. These initiatives are implemented in collaboration with national ministries and local organizations, ensuring broad institutional support.
Additionally, institutions maintain ongoing communication and regularly establish working groups that include representatives of relevant government bodies, such as ministries, as well as other stakeholders, including civil society organizations, the business sector, and others. These groups are dedicated to advancing policies and initiatives aimed at improving the position of young people in Montenegro.