Role of the Public Procurement System in the Enhancement and Development of Entrepreneurial Environment in Bosnia and Herzegovina

Abstract

This work explores the possibility of studying the role of the public procurement system in the enhancement and development of the entrepreneurial environment in Bosnia and Herzegovina. The objective of the entire public procurement system is to create a single public procurement market, on which potential customers and suppliers may bid for contracts under equal conditions in the European Union and Bosnia and Herzegovina, as well as in other countries which are not members of the European Union. This liberalisation process intends to create significant economic savings. In that manner, they foster higher competition among bidders and other participants in the public procurement system to choose the most competitive suppliers. However, it is questionable if this potential benefit will be decreased or even overcome by the administrative burden imposed on contracting bodies. Apart from that, there is also a question of the extent to which the reforms have managed to fulfil their objectives - flexibility, economic efficiency and simplified entrepreneurship development. A public procurement system and entrepreneurship are economic units of an economic system, and they can survive and successfully develop only if they are faced with changes. Therefore, the role of the public procurement system in the enhancement and development of the entrepreneurial environment in Bosnia and Herzegovina is obvious in many segments, but in the coming period it should be expected that bidders from Bosnia and Herzegovina will be able to participate equally in international bids for granting public procurement contracts, together with economic operators from the European Union.