The economic development of Serbian republic is more and more connected with development of small and medium sized enterprises, which represent one of the main bases of Serbian economy. The economic potential of agriculture imposes the need of analyzing the condition in area of small and medium sized entrepreneurship which should be the carrier of future development of agribusiness. By ranging and grouping of Serbian republic municipalities (by discrimination and cluster analysis) according to level of development of small and medium sized entrepreneurship in agriculture, the clear view is got in current state of regional development of this agricultural sector as the possibilities of future development. By development of small and medium sized enterprises in agriculture it is possible to achieve strategic goals of Serbian republic agro development and for realization of these goals it is necessary to ensure the stable economic ambient, appropriate pre conditions as measures of support which will be stimulating for development of agribusiness.