SIGNIFICANCE AND ROLE OF SMALL AND MIDDLE ENTREPRISES IN ECONOMIC DEVELOPMENT

Abstract

Small and middle enterprises (SME) are becoming
more and more the subject of interest
in developed countries in which small and
middle companies represent a factor of development.
The developed countries of the word
put SME into focus of their economic strategies
and programs and- by concrete macro-
economic measures- the aimed politics to
SME has a direct impact to reduction on business
costs and improvement of liquidation
(thus, competitive position of SME), through
tax bonds. However, BiH still does not develop
tax politics and praxis of many developed
countries, which causes a lack of attention
and improvement of the sector of SME. This
is what many research in BiH confirmed. The
changes in social- economic system based on
the market commerce create suitable conditions
for development of various activities
which should be profitable and keep up with
the development, with continuous adaptation
to constant changes on market, which gives
the advantage to SME or, so called, small
business. Such companies most often represent
the collision of ownership, management
and risk, so the knowledge and skill needed
for successful management include a very
wide range.