SME ENTREPRENEURSHIP AND ITS CONTRIBUTION TO ECONOMIC ACTIVITY IN THE REPUBLIC OF SRPSKA

Abstract

Research on the role and importance of
entrepreneurship in economic development is influenced by
the orientation of development policies in advanced
economies. Considering that the orientation towards
entrepreneurial activity and development of small business
is present in developed economies, the aim of this research
is to determine the impact of entrepreneurial activity of
SMEs on the economy in the Republic of Srpska. The
methods used in the paper are: analysis, synthesis,
induction, deduction, comparison, benchmarking. The
results of the research have shown that SMEs in the
Republic of Srpska generate more new jobs, achieve higher
turnover and create more added value than big companies.
However, big firms are more profitable and have higher
productivity, leading to the conclusion that development
policies should not be rigorously limited to the development
of only one sector, but rather to encourage their coexistence.