The Importance of Soft Skills for Small and Medium-Sized Enterprises – Evidence from Bosnia and Herzegovina

Abstract

This article aims to investigate the importance of soft skills for starting
and successfully running small and medium-sized enterprises (SMEs)
in Bosnia and Herzegovina (BiH). Using data collected from a survey of
71 upper-level managers from enterprises operating in BiH, complemented
by qualitative insights from a focus group on the same subject, the study
examines the perception of the importance of skills such as leadership,
communication, emotional intelligence, problem-solving, and teamwork.
Statistical analyses, including descriptive analysis, Spearman correlation
coefficients, Chi-square tests, and Fisher’s Exact tests, reveal that most
soft skills are highly valued by SMEs, with slight differences in perceived
importance. Communication skills emerged as the most important,
reflecting their central role in fostering productive business interactions.
The conducted analyses also indicate that the desirable set of soft skills
does not change with the company size, except for the leadership skill.
Leadership shows a moderate positive correlation with company size, indicating
its increasing importance in larger organizations. Qualitative
findings confirm the importance of soft skills for starting and managing
businesses, with emphasis on communication and problem-solving skills.