BUSINESS ENVIRONMENT AND COMPETITIVENESS IN BIH AND SERBIA

Abstract

Bosnia and Herzegovina together with Serbia shows the poor economic performance compared to neighbor countries, while the European average remains a remote and largely unattainable category. The reasons for this unsatisfactory situation are many, and this paper aims to highlight the entrepreneurial aspect of the economic dynamics of these countries compared to the world, European and regional average. We will use comparative, statistical, dynamical and cognitive analysis and synthesis in order to get better insight into the causes of our current situation, as well as recognizing the potential comparative advantages. Through presentation of the BiH and Serbia position in the Reports of the World Economic Forum in relation to the weighted averages of the world, Europe and the region, and further through the analysis of the basic parameters of competitiveness and detailed analysis of business environment indicators we will reach important conclusions about the most important shortcomings and potential advantages of entrepreneurship in BiH and Serbia. These results should be kept in mind while creating future economic measures, and they have considerable usable value for current and future entrepreneurs.