The Capacity of Republika Srpska for Developing of Small and Middle Enterprises


  • Лазо Рољић Faculty of Economics, University of Banja Luka


poverty, indexes of poverty in agriculture, endengerous of forest’s eco-systems, endengered social groups, unemployment, productivity of employee, small and middle enterprises, gross domestic product, gross added value by employee


The experiences in developed countries shown that small and midlle enterprises has become the generator of development of whole economy and employing of people. The small enterprises are much more reliable on market demand, and they are able to rich a better financial results but by angaging of less business assets (fixed assets and working capital). They also contribute to permanent increase of employment. Just from that reason, the role of SME in total economy development of Republika Srpska in some last years has become more apparent. Small economy is dominant part of total economy measured by number of business subjects, by financial results, and also by number of employed people, compared by whole economy of Republika Srpska.

The number of registered enterprises in Republika Srpska for the last four years has been double increased, and from 8,441 registered subjects in 2000-th that number has grown on 16,019 in 2003-rd. However, that number, measured in relation to the number of citizens and compared directly by the number of registered subjects in neighbour countries and in EU countries, is minored. Identical comparing is possible to be done by GDP and by gross added value per employee.

Developed countries have timely realized that SME’s are the „supporting pillar” of national economy development, and they have made the frames in which those enterprises have opportunity for progress. By different system’s supporting measures for development of SME’s and entrepreneurship, the governments of developed countries do latent dimensioning the development of their whole economy. The government of Republika Srpska have to justify a policy and to take the measssures for stimulating of mass establishing of SME’s, and also to find quicker, chipper and most contemporaneous mean for their registering and to getting a work approval license. By the author’s meaning, that would be path that from quantity originates the quality, which would lead to increasing of employment and to holding up of increasing of population poverty. That task, after all, belongs to all governments in neighbor countries, or they have taken it as priorited task in their economic policy.


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Preliminary Annoucement

How to Cite

The Capacity of Republika Srpska for Developing of Small and Middle Enterprises. (2006). Acta Economica, 4(4), 29–50.

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