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The Role Of The Government In Entrepreneurship Development: Evidence From Bosnia And Herzegovina

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  • Zijad Dzafic

    (Faculty of Economics, University of Tuzla, Bosnia and Herzegovina)

  • Amra Babajic

    (Faculty of Economics, University of Tuzla, Bosnia and Herzegovina)

Abstract

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.

Suggested Citation

  • Zijad Dzafic & Amra Babajic, 2016. "The Role Of The Government In Entrepreneurship Development: Evidence From Bosnia And Herzegovina," Economic Review: Journal of Economics and Business, University of Tuzla, Faculty of Economics, vol. 14(1), pages 68-79, May.
    • Handle: RePEc:tuz:journl:v:14:y:2016:i:1:p:68-79
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    References listed on IDEAS

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    1. Martin Carree & André van Stel & Roy Thurik & Sander Wennekers, 2007. "The Relation between Economic Development and Business Ownership revisited," Tinbergen Institute Discussion Papers 07-022/3, Tinbergen Institute.
    2. Tyson, Laura d'Andrea & Petrin, Tea & Rogers, F Halsey, 1994. "Promoting Entrepreneurship in Eastern Europe," Small Business Economics, Springer, vol. 6(3), pages 165-184, June.
    3. Baumol, William J., 1996. "Entrepreneurship: Productive, unproductive, and destructive," Journal of Business Venturing, Elsevier, vol. 11(1), pages 3-22, January.
    4. Wim Naudé, 2008. "Entrepreneurship in Economic Development," WIDER Working Paper Series RP2008-20, World Institute for Development Economic Research (UNU-WIDER).
    5. Zijad Dzafic, 2014. "Business Environment - The Case Of Western Balkan Countries," Economic Review: Journal of Economics and Business, University of Tuzla, Faculty of Economics, vol. 12(2), pages 73-89.
    6. Jolanda Hessels, 2008. "International Entrepreneurship: An Introduction, Framework and Research Agenda," Scales Research Reports H200823, EIM Business and Policy Research.
    7. Maria Minniti, 2008. "The Role of Government Policy on Entrepreneurial Activity: Productive, Unproductive, or Destructive?," Entrepreneurship Theory and Practice, , vol. 32(5), pages 779-790, September.
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    Cited by:

    1. Stone, Billy, 2017. "Exploring the Success and Failure of Small Business in Beckley, West Virginia," OSF Preprints 8xmt6, Center for Open Science.
    2. Faisal Hassan Issa, 2022. "Determining the Nexus between National Policies and Local Practices in the Promotion of Businesses for Local Economic Development in Tanzania," Journal of Development Policy and Practice, , vol. 7(1), pages 53-70, January.

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    More about this item

    Keywords

    Institutions; entrepreneurship; SME; transition; growth;
    All these keywords.

    JEL classification:

    • P2 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • H00 - Public Economics - - General - - - General

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