Abstract: It is generally accepted that developed and flexible market is necessary for successful economic development of the country. The importance of the market grows with the development of commodity production, and life today is unimaginable without market. For that matter, this study pays special attention to identifying the key factors that affect efficient functioning of the market economy in Serbia. The results presented in this paper come from the studies conducted on a sample of N = 110 respondents. This survey and application of factor analysis investigated the characteristics of the market i.e. the factors that have a positive influence on the market development, and thereby drastically reduce unexpected turbulence and open the way for the management of the national economy.