Institutional changes-assumption for development of small and medium-sized entreprises in Bosnia and Herzegovina
The authors in this paper point to the non-development of institutions as an important assumption for development of small and medium-sized enterprises (SMEs) in Bosnia and Herzegovina (B&H). Small and medium-sized enterprises (SMEs), for the last decades, have an increasing importance in the world for economic development and for the social prosperity. SMEs are accepted as an essential part of economic reforms, even in developed transition countries. In this paper, it is also stressed that the country with direct and indirect measures of support should have impact on creating a positive environment for the development of SMEs in B&H. The environment of SMEs involves state-government, local administration, chamber of commerce, universities, institutions, consulting firms, different associations etc. The authors analysed the relations of environment towards the administration of development of SMEs and give precise proposals for establishing the optimal interactive relation of SMEs and their environment.