The EU industrial policy (chapter 20) has the aim to improve competitiveness by speeding up the adjustment to structural change encouraging the establishment of an environment which is favourable for business creation and growth as well as domestic and foreign investments. EU acquis communautaire in the field of industrial policy mainly consist of policy principles and industrial policy communications. The aim of this paper is to determine whether Serbia meets these conditions or whether it has all the elements to define the negotiating position of the particular chapter. Serbia has adopted a relevant strategic document and the Action Plan, which are in accordance with the EU, integrated industrial policy and objectives of the EU strategy EUROPE 2020. It makes an integral part of enforcing the process of overall structural reforms in the country and it is based on enforcing the principles of the Lisbon agenda. The Small Business Act has been implemented and the Law on Limiting Payment Deadlines entered into force. As the chapter 20 is one of easier chapters for negotiation and so far, no Member State with which the negotiations has been completed failed to ask for interim periods or special agreements under this chapter; it may be concluded that Serbia is on a good way to close the negotiations for this chapter. However, what is more worrying is competitiveness of the national industries and improving the business environment. Key words: EU, Serbia, industrial policy, enterpreneurship.