Situation Analysis of Small and Medium Enterprisers, Entrepreneurship and Craft Development in the Federation of BiH - Workshop for the Creation of the Development Strategy of the Federation of BiH 2021 – 2027

Sarajevo, October 07, 2019 -  Discussion on the analysis of the state of development of small and medium enterprisers, entrepreneurship and craft, was held today during the workshop related to the creation of the Development Strategy of Federation of BiH 2021 – 2027. The Strategy will define key guidelines for socio-economic progress that will result in better life quality for citizens in Federation. Federal Institute for Development Programming organized this last workshop in the block, as well as other twelve.

Micro-enterprises and SMEs represent 99% of all enterprises in the EU. They provide two-thirds of jobs (mainly in the private sector) and more than half of the total added value of EU businesses.

The importance of small and medium-sized enterprises in the Federation of BiH economy has been increasing over the past twenty years. However, their work is not supported by the business environment in Federation of BiH, since it is burdened with bureacratic procedures, administrative and legal obstacles that limit the efficiency of companies establishing, ie functioning of small and medium-sized enterprises. Oversized and bureaucratic administration has a contraproductive effectt on bussines start, as well as on the efficiency of process of bussines of companies. Moreover, in Federation of BiH there is a burden of high taxes and administrative fees, access to finance is difficult, especially for start-ups, the education system is not harmonized with the needs of economy, there is no strategic framework for development of inovations, etc. This all reflects to small and medium-sized enterprises competitiveness, and it is slowing down the economic growth, ie reducing the sector's potential for jobs creation.

The discussion during the work was led by professors Zdenko Klepić and Nedim Čelebić, who were encouraging the representatives of key acters in the area of small and medium enpreprenueurs, entrepreneurship and craft development to recognize the main problems, chalenges and potentials in the area.

FBiH in numbers

Indicator 2014 2013 2012 2011
Unemployment rate - poll 29,5 28,6 28,3 25,6
Unemployment rate - administrative 48,5 48,2 48,1 45,0
GDP in mil. KM 16.150 15.150 15.250 16.850
Inflation in % 2,0 2,5 3,6 1,2
The most developed canton in FBiH KS KS ZHK ZDK
Average net wage in FBiH 825 820 819 798
Natural increase in FBiH -580 150 -208 -350

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