Montenegro’s European Union integration process could generate new corporate investment in technology, energy efficiency and business modernisation, while companies’ limited readiness to use EU funding remains a constraint. A survey of Montenegrin businesses placed their preparedness to access European funds at 43.3 points out of 100, significantly below their broader assessment of readiness for EU membership.
Businesses have identified substantial investment and support needs as they prepare for requirements associated with European standards. About 58.1% of surveyed companies said they wanted grants for upgrading equipment and technology, while 52% identified consulting support for meeting EU standards as a requirement. A further 41.3% said they needed assistance preparing projects for European funding.
Limited Information Restricts Funding Access
The survey found that 53.9% of companies considered themselves insufficiently informed about available programmes. Only 17.4% said they had successfully used an international or European support scheme. The figures indicate a gap between companies’ investment requirements and their ability to develop projects that can obtain financing.
As Montenegro advances through the EU accession process, businesses may have access to a broader range of EU-backed financing and support. However, companies need viable projects, appropriate financial documentation and sufficient implementation capacity to use those resources.
Company size is a major factor in funding readiness. Micro enterprises recorded a preparedness score of around 36.1 points for accessing EU funds, compared with approximately 69.6 points among large companies. The difference could result in larger businesses with established financial departments, consultants and investment pipelines securing a greater share of EU-linked capital, while smaller companies may struggle with applications, investment structures and reporting requirements.
Banks Could Expand EU-Linked Financing
The funding gap creates a potential role for Montenegro’s banking sector as companies combine grants with commercial loans, guarantees and technical assistance. Investment requirements could cover manufacturing equipment, digital systems, energy-efficiency projects, renewable generation, environmental improvements, testing laboratories, certification and logistics upgrades.
Banks could develop financing products linked specifically to the EU transition, including loans combined with grant programmes, guarantee-backed facilities, project-preparation support and financing connected with environmental or productivity improvements. Financial institutions including the EIB, EBRD and EIF could also participate through local banking partners and risk-sharing arrangements.
Corporate Investment Requirements Span Multiple Sectors
The transition will require companies to finance investments before additional revenue is generated. Manufacturers may need machinery and testing upgrades to remain competitive in European supply chains, while hotels may require energy-efficiency investments. Logistics companies could require fleet upgrades and digital systems, while food producers may need certification, traceability systems and improvements to production processes.
Such projects can become suitable for bank financing where companies can demonstrate the necessary cash flow and investment structure. The accession process could therefore create a lending cycle connected to corporate modernisation, alongside demand for financing support.
Advisory Services Become Part of Funding Capacity
Companies with limited experience of European programmes may also require assistance with project design, feasibility studies, environmental documentation, procurement, financial modelling and reporting. This creates potential demand for services involving banks, consultants, engineers, accountants and project managers. The survey’s 43.3-point funding-readiness score indicates that this advisory capacity remains limited.
Businesses also identified reducing administrative procedures and improving assistance with EU-fund applications among their priorities. Simpler procedures, stronger information provision and greater project-development capacity are therefore relevant to companies seeking to use European financing. If EU-supported capital is concentrated among a limited number of large businesses, differences in productivity between larger and smaller companies could widen as competition from the single market increases.
A broader SME project pipeline would allow more companies to use funding for modernisation before full EU membership. The central financing requirement extends beyond access to European programmes, involving the capacity of companies, banks and institutions to develop projects that meet funding and implementation requirements.
