Small and Medium Entreprise Sector Development in Bosnia-Herzegovina

by Senada Batho

Establishing and managing a small firm offers to its owner and manager the possibility to make his/her dreams to become a reality. Entrepreneur ship, in that case, as the way of living, we can consider as artistic, and it is obvious that it means more then working just in order to survive.

The existence of SMEs and their specific features offers an advantageous working environment not only for their owners and managers but also for all employees. Smaller and simpler work units, provide more (human)-firiendly work conditions to the workers; the sense of belonging to the firm, more direct and clear involving and contributing to the firm's final result, which often does not occur in large, impersonal companies. It is particularly evident during the first stages of firm's life cycle. Because of their size and vulnerability to the market changes, SMEs are forced to steady innovating. It is clear that due to limited financial sources, the SMEs are not able to invest in large, basicly scientific research projects, as are large companies, but that is why they are a source of continuous final improvements of products and processes. Innovating for them means surviving on the market.

The importance of SMEs is also great if we take into account regional development. SMEs ofren embody the continuity of traditional artisan production, typical for some territorial areas, and closely tied to the family relation. On that way the growth of the SMEs involved in such production means growth and industrial development of the area without breaking the connections with the local environment and close adaption to the existing social and environmental local context.