Fostering resilience and sustainable growth for businesses in Bosnia and Herzegovina

Context

The Covid 19 crisis and the resulting restrictions on mobility have radically disrupted the supply chains and export activities of many companies in Bosnia and Herzegovina. Especially micro, small, and medium-sized enterprises (MSMEs) in the wood, metal and textile industries as well as in agriculture and international tourism have suffered from the impact of the pandemic.

In addition, businesses are under increasing pressure from international companies to comply with environmental and, in some cases, social requirements along the supply chains. Although many of these regulations are voluntary by definition (standards), they place high pressure on local SMEs to comply in case they have international customers and are integrated into international value chains.

Furthermore, the world is facing extreme challenges due to the energy and food crises brought about by the war in Ukraine and the increasing threat of climate change. Thus, solutions for a resistant and sustainable economic system must be found.

Objective

Micro small and medium-sized enterprises (MSMEs) in the wood, metal and textile industries as well as in agriculture and international tourism can continue their business activities despite the impacts of the COVID 19 pandemic.

Approach

The project provides technical and financial support to MSMEs. It ensures the continuity of business operations and the establishment of innovative start-ups in order to preserve existing jobs and secure new ones and thus reduce negative social consequences such as unemployment, poverty or migration.

With the Green Recovery component, the project supports private and public actors to advance green transformation of small and medium enterprises (SMEs) in Bosnia and Herzegovina (BiH). Moreover, project partners receive support in adopting green business models through long-term recovery measures, using innovative, resource-friendly technologies, which will eventually transform supply chains and lead to a greener economy while also taking social aspects into account.

Ultimately, the assisted companies should become more resilient by adapting more sustainable business models, diversifying product portfolios as well as markets while maintaining the current workforce and creating new jobs.

The project is cofinanced by the European Union.

Last update: January 2024