On 26 June, 2007, Mr. Kjartan Bjornsson, Head of Economic Development and Natural Resources Section in the Delegation of the European Commission to Bosnia and Herzegovina, opened the Conference on “Small and Medium–Sized Enterprises in Bosnia and Herzegovina on the Road to the European Union – Ways to Promote and Develop Business”.

The Conference brought together representatives of  State, entity and local government, Employer’s Associations and Development Agencies, as well as commercial companies and certain NGOs.

Mr. Bjornsson pointed out that In the European Union, 23 million Small and Medium sized enterprises (SMEs)  account for some 80% of the total employment and provide 75 million jobs. 99% of all enterprises in Europe are SMEs and they play a key role in job creation and tax generation. Development of the SME sector in BiH is of vital importance for the future prosperity of the country, especially in view of the high unemployment rate, and requires the establishment of professional and capable support institutions on all levels. BiH has made little progress  in meeting the European Union Charter for Small Enterprises recommendations. He pointed out that, among others, there is a lot to be done on the necessary legal and institutional framework– the BiH-level strategy for SMEs still remains un-adopted, there is no framework law at State level for SME development and promotion and there is also an urgent need for a Council for Development and Entrepreneurship.

Mr. Peter Milford, Consultant to the Organization for Economic Cooperation and Development for the European Charter for SME research, presented highlights from the report on the status of implementation of the SME Charter in the countries of the Western Balkans. The European Charter for Small Enterprises responds to the goals set out in Lisbon: to become the most competitive and dynamic knowledge-based economy in the world, capable of sustainable economic growth, more and better jobs, and greater social cohesion. The Ministry of Foreign Trade and Economic Relations is in charge of reporting annually to the European Commission on the status of Implementation of the Charter in BiH. Overall, in terms of implementation of the EU Charter, BiH scores are low, just above Kosovo.

The conference featured speakers from the business sector throughout the country, presenting concrete experience in a range of fields: Dr. Elvir Causevic, Director of the Tuzla Company “Inspire”, spoke about “Experiences in building a fast growing company in BiH”; Slavko Simic, Director of the Banja Luka Company “Bross Trade”, spoke about “Overcoming challenges in the establishment of a company in BiH”; Zeljko Bozic, from the Mostar company “Alfatherm”, spoke about “Investment in education of SME human resources – a key to success” while Natasa Pucar, Director of the Brčko Company “Bimal”, spoke about “Successful food processing”. Their significant knowledge of the realities in the business environment was valuable to draw conclusions on lessons learned.

The event was organized in the framework of the EU-funded project EURED-II, which has the following specific objectives:

•  To support the establishment of a comprehensive institutional and legal framework for Small and Medium Enterprises promotion and development, in line with the BiH SME Development Strategy, the EU Charter on SMEs and regional development plans;
• To strengthen economic regions and the regional development framework, in line with EU practice;
• To support economic regeneration, job creation and human and infrastructure development in the different regions.