Encouraging entrepreneurship and incentivising the growth of the economy by reducing salary contributions and providing tax breaks related to VAT are only a few of the goals of the Institute for Youth Development KULT’s initiative “Business Site”.

The initiative was presented to representatives of the business sector, government institutions and associations, all of whom are aware that creating jobs is the most important issue in BiH. 


Developing efficient solutions is crucial not only for the development, but also for the survival of an already fragile and overburdened economy. The initiative, among other things, suggests an increase of funds in the budget line for entrepreneurship, along with an improved re-allocation procedure for supporting developing branches of economy, which will be determined by conducting an analysis. We are also aware that the economy is overburdened, and we will suggest solutions relating to VAT breaks and decreasing the amount of salary contributions. This is a delicate issue, but we will suggest that certain accommodations be made, along the lines of exempting subjects from paying salary contributions or perhaps subsidizing salary contributions for the newly employed, as well as exemption from all sorts of parafiscal charges, said Rusmir Pobri?, Project Coordinator.  

28-year-old Predrag Borojevi? from Gradiška, knew that paying lip service to employment does not create new jobs, so, prompted by the results of a survey which showed that youth consider unemployment their biggest problem, he, as a representative of the NGO Most, opened a branch of a company called FG Group for designing and making clothes, and the brand Funky Guerrilla was released on October 6.   

“It takes courage to start a business, and once you do, you realize that it takes a bit of folly too. So, both are needed. For now we have 5 employees, and we hire designers on a part-time basis. Half of our sales profits are used to pay for production expenses, and the other half we use to fund the association”, said Borojevi?. 

The 30 000 BAM of initial capital was provided to them by the Youth Employment Programme (YEP), funded by the Swiss Agency for Development and Coordination (SDC).

Although fully aware that the business environment in BiH leaves a lot to be desired, they are planning to launch their clothing line in stores in Mostar and Tuzla, followed by Sarajevo and other countries in the region.

The key thing is to facilitate the functioning of economy. I pointed out that there is too much talk about the public sector, employment, problems, but there can be no public sector without the private one. Even when the private sector makes a suggestion, we always have to wait for something. However, we have no time to wait, because we are constantly being stifled, said Aida Zej?inovi? from “Bolji posao” which provides employment mediation services. 


The Institute for Youth Development KULT launched an initiative called “BH Business Site”, aiming to contribute to solving systemic problems in the employment sector in BiH; primarily the inadequate system for allocating budget incentives for programmes and active measures for fighting unemployment in BiH, as well as the inadequate tax collection system and high employer’s contributions which pose a burden to the economy, and present a hindrance to investments in development and creating new jobs.


Due to the volatility of the political scene and institutional instability, the social and political dialogue among key actors in the sector of labour and unemployment is lacking, causing systematic problems, instigating the growth of the unemployment rate. For precisely that reason, the primary intention of the Initiative is to provide a comprehensive, strategic approach to the employment sector in BiH, while involving a wide spectrum of actors from the business, public and civil sector, who will form into an active, functional, and regionally represented Network – a “reconstruction team” of sorts for the BiH business site.

Based on detailed analyses of the biggest inadequacies and problems in the area of unemployment in BiH, and the noted prioritised and burgeoning sectors of the economy, the Network’s work teams will create precise recommendations and guidelines for addressing every anomaly identified in the employment sector, and advocate the competent government institutions to adopt them.

Put more succinctly, we would like well founded and tailored advocacy efforts to foster a better business environment through improving and increasing the amount of financial support for SMEs, as well as through improving the planning and allocation of economic incentives on all levels of government, followed by introducing tax reliefs for employers regarding the payment of value added tax and salary contributions.

The conference will be held on Thursday (tomorrow), November 27, 2014, at Hotel Hollywood (IlidĹľa), starting at 9:30. Media statements will be given from 12 to 12.30 pm.


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