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.

The primary goals of the research are to identify the perceptions of top management in domestic companies in BiH, to determine the willingness of domestic companies to migrate to the cloud and systemize the benefits of using Cloud technology in BiH. The advancement of information and telecommunications technology has enabled large and small companies to access cutting-edge technology, thanks to which they can increase profitability and competitiveness while reducing business costs. The research results indicate companies' top management does not have enough information/data related to the benefits of Cloud technology, and thus partially or insufficiently consider the possibility of business migration to the cloud. Certain companies base their business on Cloud technology, but most companies have hardware resources they use as a basis for creating a platform necessary for the operation of one or more information systems. According to the research results, we can conclude the managers are not familiar with the potential benefits of Cloud technology, which serves as direct evidence for the hypothesis. However, it is expected, SMEs and large companies will completely or partially switch to Cloud technology, in future.

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.

Small and medium-sized enterprises (SMEs) are one of the key development factors of the economy in many countries. They stimulate competitiveness and innovativeness, contribute to the growth of employment and also have an impact on improving the overall economic situation in the country. Bosnia and Herzegovina is a transition country that has still not adequately organized the development concept of small and medium-sized enterprises. In Bosnia and Herzegovina (BiH) there is an entrepreneurial initiative but without significant government support in the realization of business ideas of potential entrepreneurs or the implementation of innovative ideas, although their personal success generates and benefits the whole society. The central research hypothesis reads: Innovation has a positive impact on the growth and development of small and medium-sized manufacturing enterprises in BiH. The authors seek to present the current state of innovativeness in the SME sector in BiH with a review of the situation in the countries of the region and to propose certain measures to accelerate their development. This paper uses the Global Innovation Index Reports, followed by the World Bank Report on Business Ease, which measures the degree of national competitiveness and innovation of the economy, as well as the results of primary research on a sample of 200 manufacturing SMEs in BiH. The general objective of the research in this paper is to consider and review the effects of innovations in the operations of emerging SMEs and their impact on the growth of market share and increase of the total revenue.

In recent decades, economic growth in countries around the world has become increasingly dependent on the dynamism of small and medium sized enterprises (SMEs). This is especially important in the transition economies. The creation of a new SME sector in Bosnia and Herzegovina (BiH) as a transition country may play an important role in the process of economic regeneration and job creation. The paper sets out an approach to analyzing the development of SMEs in BiH. We have focused on (i) attitudes of entrepreneurs in the private sector towards the role of government in SME development through provision of assistance to SMEs in BiH, (ii) the business environment in which firms operate, and (iii) attitudes of the employmed in government sector towards the role of government in SME development through the provision of assistance to SMEs in BiH. The paper reviews the literature on these three approaches and available evidence on relevance to understanding the performance of SMEs as main agents of entrepreneurship in the BiH.

This paper investigates and compares development of the Entrepreneurship and Small and Medium-sized Enterprises (SMEs) sector and different obstacles for development of this sector in the Western Balkan countries (WBCs). Many evidence from the countries of central Europe show that the development of SMEs and entrepreneurship is a key factor for a successful transformation from command to market based economy in WBCs. SMEs create new jobs, products and services, help in restructuring former state enterprises, which is very important for transition countries, and generate government revenues. Also, SMEs stimulate private ownership and entrepreneurial skills and innovations. A special accent in this paper is put on many international reports and datasets relevant to the assessment of business environment in this region. In this paper, the author uses only some such as: The Global Competitiveness Report of World Economic Forum, World Bank’s Doing Business Index, Heritage Foundation's Index of Economic Freedom, European Charter for Small Enterprises and Small Business Act of OECD and European Commission (EC) and Indicators of Business, Corruption and Crime in WBCs of the United Nations Office on Drugs and Crime (UNODC). The author has come to the conclusion that, in respect of SMEs, WBCs lag behind the countries in the European Union. This article aims to analyze the system of regulation and administrative facilitation aspects of doing business in the above-mentioned countries and, whether or not this system stimulates, the development of private SMEs and entrepreneurship.

With the collapse communism in Eastern Europe, attention has focused on whether such nation can successfully transform into entrepreneurial economies. Bosnia and Herzegovina is one of the post-communist countries where the transition from a planned economy to a market-based economy has been more complex than in other countries in SEE. The development of SMEs and Entrepreneurship in BiH is in its initial stage, even though this sector of economy could become the initial force of development of the country. The government still has no strategy for the development of Entrepreneurship and SMEs, and furthermore there are government imposed barriers obstructing the development of SMEs and Entrepreneurship. The significance of this research is underlined by the need for a selection of decisions on: - essential elements of Entrepreneurial environment in Western Balkans Countries - identification of main obstacles for the development of SMEs in these countries, - analysis of institutional support for the development of SMEs and Entrepreneurship in BiH and other Countries of Western Balkans.

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.

Our goal in this paper is to highlight the role and significance of the environment and natural resources in the process of creation of competitive advantages in a globaly connected world. It is possible to define the process of globalization on different levels: worldwide, specific country, specific industry and specific company. Globalization on different levels leads toward continuous requests for increased competitiveness. We would like to show the mechanism through which economic growth in a globalized world leads to environmental degradation and overexploitation of natural resources. Most developed countries admited significant environmental quality deterioration and natural resources overexploitation as a consequence of high rates of economic growth. In other words, the economic growth pattern was recognized as unsustainable in the long run. We shall make a critical review of particular indicators of competitiveness and sustainability, primarily of the Growth Competitiveness Index and Environmentaly Sustainability Index. We would like firstly to show important shortfalls of each of them, and secondly would like to propose certain improvements in the form of the creation of a entirely new synthetic indicator – Sustainable Development Competitiveness Index. That index (however still imperfect) might serve as a much better and reliable guidance for all the countries on their road toward genuine sustainability.

Experiences of many countries that were very successful in transition process like Slovenia, Czech Republic, Hungary and Poland show that special attention has been given to the development of a powerful SMEs sector in order to change the economic structure and initiate economic development. Small and medium enterprises make 99,8% of the total number of enterprises and they create 60% of the GDP and 50% of all investments in EU. SMEs were the main source for increasing employment in last ten years. The EU has a goal that it will be the most competitive region in the world before the end of 2010, and for achieving that goal it will count on the development of small and medium enterprises. If we look at SMEs and their development in that regard, in light of making the whole region of the western Balkans closer to the European Union, it is clear that SMEs in this part of Europe must develop faster and become a dominant form of income for the region. SMEs contribute significantly to decreasing unemployment, but only with the presence of a powerful government and a consistent industrial policy in which a business environment for entrepreneurships can develop. The significance of this research is in the need of selection of decisions on:essential elements of entrepreneurial environment in Western Balkans; identification of main obstacles for the development of SMEs in these countries, and analysis of institutional support to the development of SMEs and entrepreneurship in these countries.