The Capacity of Republika Srpska for Developing of Small and Middle Enterprises
Journal Title: Acta Economica - Year 2006, Vol 4, Issue 4
Abstract
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.
Authors and Affiliations
Лазо Рољић, PhD
Keywords
Related Articles
- EP ID EP43586
- DOI -
- Views 271
- Downloads 0
Opportunities and pitfalls of factoring in relieving insolvent companies and the economy
Increased competition on the market, as well as the effects of the global crisis put the vendors in a position to grant all their customers longer payment terms. Even with the extending of terms for payments, customers ar...
Analysis of the Effects of the EU Official Development Assistance to the Western Balkans
Official development assistance (ODA) implies the movement of capital with a minimum of one quarter of grant. It was established in the second half of the previous century, with the aim of getting developed countries to...
INFLUENCE OF THE POLICIES OF INTERNATIONAL FINANCIAL INSTITUTIONS ON THE ECONOMIC POSITION OF THE REPUBLIC OF SRPSKA
Small, open economies, such as the economy of the Republic of Srpska, are highly dependent on developments in the international economic environment. The unfavorable economic structure inherited from the previous sociali...
PROJECTION OF TOURIST TRAFFIC DEVELOPMENT IN BOSNIA AND HERZEGOVINA
As a difference from all other scientific fields, tourism uses qualitative space on such way that using it the space is to be enriched but not devastated. Touristic demand, therefore, has been directed to wards such plac...
STANDARD BASIS OF THE FINANCIAL REPORTING AND FINANCIAL CRISIS
Emergence and development of financial crisis which turned into economic crisis have caused deeper analysis of rules of financial reporting from professional public and politicians. International bodies for accounting st...