SARAJEVO, February 18 (FENA) – After analyzing the market situation and identifying problems related to adequate development regulation, the Government of the Federation of Bosnia and Herzegovina has formed a working group that has worked for two years on drafting an Enterprise Infrastructure Law.
Therefore, this area will be regulated for the first time, with the aim of facilitating the business of small and medium-sized enterprises to ensure that anyone with a business idea has the space to realize it and that the entrepreneurs do not have to worry about numerous administrative obstacles.
This was highlighted today at a consultative meeting on the said law proposal, which was attended by FBiH and cantonal ministers, representatives of FBiH enterprise infrastructure, public institutions engaged in entrepreneurship research and UNDP representatives.
The meeting was organized to gather suggestions from relevant stakeholders for possible changes to the laws and regulations, with the aim of making a positive impact on the development of the enterprise infrastructure and the overall entrepreneurial environment in the Federation of BiH.
The Federation of BiH Prime Minister Fadil Novalić explained that the drafting of the law was initiated after the analysis of the situation in the economy and concluded that SMEs dominate; precisely 23,000 of active businesses and 48,000 trade crafts employ an average 17 people.
Also, of the 60,000 newly employed in this term in office of the FBiH Government, the highest percentage was recorded in crafts, employing one-sixth of all persons, which shows, says Novalić, that they are the fastest growing companies, which is in line with the fourth industrial revolution in which services are growing faster than industries.
“We have seen that they have different problems although they are the fastest growing companies, they are also the most vulnerable and they are not adjusted to legal measures that are oriented towards large companies,” added Novalić.
Firstly, Novalić points out, it is necessary to open communication channels with municipalities in order to establish a quick registration of companies, to facilitate tax filing so that it does not require bookkeeping service, and then the guarantees with own property will be regulated.
Economic zones are needed in every municipality, the FBiH Prime Minister believes, since this prevents problems for the businesses with registration because everything has been resolved, such as energy permits, water supply, sewerage, road communication and very often land lots itself.
The Federation of BiH is allocating four million KM for entrepreneurial infrastructure, and Novalić announces that this amount will be increased in the future and added that legal obstacles need to be removed right now so that these funds can be applied without problems.
In 2019, with the support of the United Nations Development Program (UNDP) Working Group and Local Integrated Development Project (LLD), the FBiH Ministry of Development, Entrepreneurship and Crafts has drafted the text of the Preliminary Draft Law on Entrepreneurial Infrastructure in the Federation of Bosnia and Herzegovina.
The law will create a systemic framework and all the institutions will be registered and will be able to apply for budgetary incentives, which will also open special opportunities for public-private partnerships.