Authors in this paper investigates the relationship between the business environment and the operating performance of the plastic products manufacturing sector intended for the construction industry in Bosnia and Herzegovina (BiH). The focus is placed on how regulatory and institutional conditions impact economic indicators such as sales revenue growth, profit, export earnings, total assets, and employment. Since empirical studies in this area are scarce, this research contributes to filling an important academic gap. The study relies on both secondary and primary data sources. First, the business environment of BiH is evaluated using reports. Second, financial and operational data were collected for the top 20 companies in the plastic products manufacturing sector for the construction industry in BiH. The analysis covers the period 2015–2024, using indicators of revenue, profit, exports, total assets, and number of employees. A trend analysis was conducted to identify growth patterns, while a qualitative assessment was applied to connect these trends with the conditions of the business environment. The analysis of company performance reveals a positive growth trend in all major economic categories. Sales revenue steadily increased between 2015 and 2024, reflecting growing demand in the markets. Profitability improved despite regulatory barriers, indicating a strong adaptive capacity of firms. Export earnings expanded, showing that plastic product manufacturers. Total assets of the companies grew significantly, suggesting reinvestment and capacity expansion. Employment levels also increased, underscoring the sector’s contribution to job creation. These results support the hypothesis of a significant impact of the plastic products manufacturing industry on economic performance indicators in BiH.

Abstract: The degradation of the environment is one of the most urgent challenges today. Since the industrial revolution, we have only known the model of linear economy that deals with the relationship between growth and consumption with the creation of large amounts of waste. As an alternative, a new the concept of the mod-ern economy, the circular economy. The underlying assumptions of such a system are characterised by a ten-dency towards efficient use, and recycling and re-use of resources asit would limit the negative environmental impacts of the economy, while reducing costs in economic activities with the aim of economic growth. Our goal in this paper is to highlight the role and significance of the Circular Economy and natural resources in the process of creation of competitive advantages in a globaly connected world as well as in Bosnia and Herzegovina. Our companies have preferred the mass production method of material wealth based on the mass consumption of natural resources as the main economic development method while pursuing high economic growth and maximum economic profit. These days, this economic development method faces various limitations. Many problems, such as mass generation of wastes exceeding the natural purification capacity, enormous damage environment, deepening of natural disasters and global warming, various disputes surrounding natural resources. This analysis highlights that the use of circular economy tools can help economic policy makers and researchers to take into account the impact on the environment during strategic planning activities and projections of economic growth in BiH.

In this paper, the authors explore the impact of the business environment on the microeconomic competitiveness of companies in the dairy industry sector in Bosnia and Herzegovina. Th e business environment in which these enterprises operate may be a motivating force or, on the other hand, a limiting factor of their progress. Th e study examines the variables of the business environment and the variables of the microeconomic competitiveness and their interconnection. Th e results of the empirical research confi rm the earlier fi ndings and results of similar research on the unfavorable business environment in Bosnia and Herzegovina. Complete statistical data processing was done on a sample of 26 enterprises (84% of the total population) operating in that sector, by the method of correlation analysis and multiple linear regression. In that sense, the infl uence of movement, tax rate, the number of procedures for the establishment of the company, the time of export, the time of import, and the number of procedures for obtaining building permits were examined as indicators of an independent variable, on the movement of microeconomic competitiveness as a dependent variable by means of the multiple regression analysis. For this purpose, one central and three working hypotheses, as well as 3 linear regression models, are set up, which will help in deciding or rejecting the set hypotheses.

This article describes the small and medium enterprise (SME) sectors in Bosnia and Herzegovina (BiH) and other Western Balkan countries, and compares their development. The authors identify the levels of development achieved, remedial measures and activities for stimulating this sector. There is special emphasis on external and internal obstacles to small and medium-sized manufacturing enterprises in BiH. The authors conclude that in respect to SMEs BiH lags behind other countries in the region, where this sector has achieved dynamic development and a majority share in the employment market, exports and GDP. That said, there remains a need across the whole region to resolve obstacles in the domestic market, alongside initiating intensive activities aimed at introducing the SMEs to the Single European Market. For BiH, primary research has been carried out to determine the external and internal obstacles to SMEs in the country’s manufacturing sector. The key obstacles are identified, their intensity and grade determined, and they are classified into three groups. Factor analysis was used in determining six factors explaining external obstacles and two factors for internal obstacles. It has also been confirmed that other companies apart from manufacturing SMEs face broadly similar external obstacles, and that these obstacles are more in evidence when compared to the situation in other Western Balkan countries. Recommendations are offered to the Government of BiH and SME managements for removing the obstacles which have been identified.