THE DEVELOPMENT OF SMALL AND MEDIUM-SIZED ENTERPRISES IN BOSNIA AND HERZEGOVINA -WITH PARTICULAR REFERENCE TO THE REPUBLIC OF SRPSKA-

Abstract

The privatization process and the entire economy in the last decade in Bosnia and Herzegovina have strongly established small and medium-sized enterprises as the basic form of economic organization. That is to sa , the economic structure of Bosnia and Herzegovina, besides enterprises concerning electric power and mining industry and infrastructure , is made mostly of small and medium –sized enterprises formed with private capital. The development of small and medium-sized enterprises has high priority within political plans of Bosnia and Herzegovina, while process of merging in European Union provides new market chances for small and medium-sized enterprises within competing sectors. Given these facts, the paper will elaborateto to what extent institutional support, fiscal burden and incentive mechanismsare are present in small and medium-sized enterprise sector in Bosnia and Herzegovina as well as to what extent the mentioned factors have impact on this secto. However, the focus will be laid on the development of small and medium-sized enterprises in the Republic of Srpska.