The most important economic challenge that is posed by policy makers in transition economies is a challenge to start new development cycle that will ensure economic progress and better standards of living for citizens. In this sense, a priority is to to create conditions for increasing competitiveness of the economy.
The main sources of growth of the private sector are in stimulating business environment, support the development of entrepreneurship and attracting foreign investment. In Bosnia and Herzegovina there has been a noticeable improvement in the removal of administrative barriers to domestic and foreign investment. However, strengthening entrepreneurship has been established as a prerequisite for faster development of the private sector, especially for SMEs growth.
The basis of competitiveness lies in the nature of the environment in which businesses operate, which means that the business environment should be supportive of investing, be transparent and efficient in providing the necessary information, natural and human resources, physical infrastructure, financial resources, scientific, information and technological infrastructure.
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The ability of firms to achieve competitive advantage does not depend not only on their strategy, innovation and jobs, but also from external factors and institutions. Macroeconomic reforms are necessary but not sufficient condition for growth of productivity and competitiveness. Microeconomic reforms are also essential, and they occur at the level of the enterprise.
SMEs in the context of entrepreneurial restructuring should be the bearer of economic growth. To be able to realize their role as such, it is necessary to remove the restrictions which is generally expressed through an adverse environment for their development and growth.
In this paper the author will analyze key internal and external constraints for development of SMEs. On the base of scientific analyze, this article shoud give recommendations for further improvement of economic policy that should be in function of faster economic development and better competitiveness position of BH economy.
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Datum:
14.06.2011.
Br. otvaranja:
702
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