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.