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Faculty of Economics, University PIM Banja Luka , Banja Luka , Bosnia and Herzegovina
Faculty of Economics, University PIM Banja Luka , Banja Luka , Bosnia and Herzegovina
Faculty of Economics, University PIM Banja Luka , Banja Luka , Bosnia and Herzegovina
Small and medium-sized enterprises (SMEs) represent a significant development factor in all transitional countries. It could be argued that the development of SMEs represents one of the greatest development opportunities for Bosnia and Herzegovina, including Republika Srpska. Therefore, it is important to highlight their position. Why focus on the SMEs sector? Firstly, because these enterprises are the engine of economic development, i.e., the driving force of the economy. In this sense, their role is particularly significant in transition countries, including Bosnia and Herzegovina with Republika Srpska. They are considered the backbone of the growth and development of national economies. Looking at them individually, it can be said that these companies make the biggest contribution to increasing employment, gross added value and turnover. They have a comparative advantage in being able to adapt quickly to changes and meet market demands. Furthermore, these enterprises promote private ownership and entrepreneurial skills. It is also evident that SMEs in Bosnia and Herzegovina operate under conditions of high unemployment rate, low levels of economic activity, lack of investment and insufficient competitiveness. These conditions are further characterized by instability and unpredictability, expensive loans, problems with debt collection, investment issues, outdated technology, as well as high levels of corruption, bureaucracy, and political instability. The study analyzed the attitudes of different levels of management, responsible for the SMEs conduct of business. The research aimed to determine the respondents perception of the key success factors of SMEs in Republika Srpska, particularly regarding support programs for the SMEs sector. The main method of data collection in this study was a survey conducted by filling out a questionnaire in May 2022. The survey was anonymous and conducted with 100 respondents (100 SMEs) from Republika Srpska via e-mail. Subsequently, through correlation analysis, more concrete results were obtained, indicating the greatest importance of the support programs from the Development Agency of Republika Srpska and favorable loans for development and innovation activities, pointing towards the direction in which Republika Srpska institutions should intensify efforts to improve the position of SMEs. Also, the highest percentage of respondents identified expert and consultancy support and support from the Council for the Development of SMEs and Entrepreneurship as the least significant. These data emphasize the importance of more rigorous competency checks and more adequate selection of personnel in institutions dealing with SME issues, so that professional development and counseling gain significance and effectiveness.
SMEs, support programs, subsidies, Development Agency of the Republika Srpska, loans, expert and consultancy support
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