Current digital policy initiatives in Bosnia and Herzegovina (BiH) suffer from several issues, including the absence of a comprehensive national strategy for SME digitalization, fragmented institutional and legal frameworks, inadequate development of business and digital services, limited e-commerce growth, high logistics costs, and insufficient awareness and digitalization plans among SMEs. In contrast to many other countries, BiH lacks effective support for SME digitalization, which poses significant challenges. This paper identifies these policy problems, explores potential solutions, evaluates them based on objective criteria and expert input, and ultimately offers recommendations to address these challenges.
This policy paper is a methodological continuation of two previous reports: a desk review entitled "In depth analysis in building digital innovation ecosystem for SMEs" and a qualitative analysis entitled "SME Support Policy Impact on e-Commerce and Digital Skills Development through Investments and Building Competitiveness". It also includes a literature review and relies on previous research done by the CoE. Three sets of policy options are defined and then analyzed, based on the research findings of previous reports.
These recommendations have the potential to drive digital transformation and elevate SMEs in Bosnia and Herzegovina. Embracing digital business practices can enhance the capabilities and competitiveness of SMEs in a rapidly evolving environment, ultimately contributing to the development and prosperity of the country. To realize these benefits, policymakers and SMEs must prioritize new opportunities and align their strategies with global trends.
Full Policy Paper can be downloaded here: