"Bosnia's Transitioning Economy" An Analysis of the Economic Changes and their Impact on Small Business

Abstract

My senior individualized project was aimed at assessing the state of Bosnia's economy, and its implications for small businesses. In order to accomplish this, I spent six weeks of the summer before my senior year in Bosnia and Herzegovina. I immersed myself in the culture and business world of the country in order to gain a better understanding of it. Based on my time in Bosnia, and research conducted using various outlets, I was able to compound an overview of the Bosnian economy, as well as suggestions for hopeful entrepreneurs in Bosnia. This paper consists of two main sections. The first section, the experiential section, describes the company I worked for as well as my individual responsibilities. The next section, the connections essay, is my research on the Bosnian economy, as well as suggestions and implications for the future. Bosnia and Herzegovina has undergone a major change since the communist Yugoslavian era. Not only has the government transformed, but the economy has undergone a transformation as well. After the end of the war, it started to change to an open market economy and started to develop a privatized sector as well. The changes however, have not been as successful as predicted, and fourteen years after the war ethnic tensions still exist. Not only is it hard for people to open businesses, but once they do successfully open one, they have a hard time finding talent. It is because of these two problems that it is becoming harder for people to actually go through with opening up a business. But, with the use of micro financing firms, it is becoming easier for individuals to build up credentials to open up businesses and start to compete in the transitioning markets of Bosnia and Herzegovina.