economy
February 19, 2026
Serbian Invested 50,000 Euros, and Everything Failed: I Received Curses and High Blood Pressure
Low profit margins and huge inventory are destroying this type of business in Serbia.
TL;DR
- A former Serbian hardware store owner invested between 30,000 and 50,000 euros in initial stock, with only 5% of inventory actively selling.
- Low profit margins and the inability to return expired or slow-moving stock, such as paints and sprays, lead to significant financial losses.
- Small businesses face pressure from customers seeking free consultations and from unfair competition, including online sellers and Chinese platforms offering goods at unrealistically low prices.
- The market is characterized by a lack of mid-range quality tools, forcing consumers to choose between poor quality 'Chinese' items and expensive professional brands.
- The entrepreneur's store experienced an annual drop in turnover of 5 million dinars between 2021 and 2025, indicating the unsustainability of this business model.
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