Macroeconomic business conditions in Serbia are still quite unfavourable in the post-recession period. Data submitted by the Serbian Business Registers Agency show that the number of newly established entrepreneurs in Serbia, in 2010, is for the first time less than the number of those that have gone out of business over that year. These data were the basis for the analysis of constraints and factors that brought about this situation. The high mortality rate of entrepreneurial ventures indicates the presence of a large number of problems that limit the development of entrepreneurship in Serbia. A survey carried out on entrepreneurs and managers of small and medium enterprises (SMEs) by the Republic Agency for Development of small and medium enterprises and entrepreneurs (SMEEs) revealed key constraints for their expansion, such as: lack of financial resources, administrative obstacles, insufficient qualified labour, lack of information on markets and technologies, non-compliance with standards and other less significant issues. Therefore, the objective of the paper is to stress the influence of the major problems and restrictions to the development of the entrepreneurial sector in Serbia. Constraints to the growth of entrepreneurship are going to be perceived through the prism of (insufficient) financial investments that the government makes to overcome them. In addition, by statistical analysis methods, it will be tested whether and to what extent each of these factors affect the number of start-ups. Based on the results, certain recommendations to the economic policymakers will be given.