From 20 to 22 October, the Organisation for Economic Co-operation and Development (OECD) organised a series of events in Mostar, Sarajevo and Banja Luka to present the findings and recommendations of the SME Policy Index 2026: Western Balkans and Türkiye – Bosnia and Herzegovina Economy Profile. Co-funded by the European Union, the report assesses the policy framework for small and medium-sized enterprises (SMEs) and identifies priorities for strengthening competitiveness, supporting business growth and advancing economic convergence with the EU.
At the launching events in Sarajevo and Banja Luka, Ms Antonella Di Sandri, Head of Operations Section II for Economic Development, Natural Resources and Infrastructures at the Delegation of the European Union to Bosnia and Herzegovina, underlined the importance of translating policy commitments into tangible results for businesses.
“The SME Policy Index provides a practical tool for assessing progress, identifying gaps and determining where further reforms can help businesses invest, innovate and grow. SMEs account for 99.7% of all firms in Bosnia and Herzegovina, more than 70% of employment and 69% of value added. Their success is therefore essential to the country’s competitiveness, job creation and innovation, as well as to its green and digital transitions. Strengthening the policies and conditions that support SMEs is an important part of building a more competitive economy and advancing Bosnia and Herzegovina’s economic convergence with the European Union,” said Di Sandri.
The 2026 assessment records progress since the previous edition, particularly in the operational environment, innovation, and the institutional and regulatory framework. However, performance remains below the regional average, pointing to the need for more consistent implementation and stronger co-ordination.
Key priorities include improving access to finance through better evaluation and targeting of support instruments, clarifying the regulatory framework for the green transition, supporting SMEs’ digital transformation and improving skills intelligence and co-operation between education systems and employers.
The SME Policy Index is a joint initiative developed by the OECD in close co-operation with the European Commission, the European Bank for Reconstruction and Development (EBRD) and the European Training Foundation (ETF). It helps governments assess progress, identify gaps and improve policies supporting SMEs.
The European Union supports efforts to strengthen the private sector and improve Bosnia and Herzegovina’s economic competitiveness and convergence with the EU. A stronger business environment and more competitive SMEs can help the country prepare for closer integration with the EU Single Market, while contributing to the broader objectives of the EU Growth Plan for the Western Balkans.
