More and more small entrepreneurs in Republika Srpska are having a hard time keeping up with the rise in business costs. In Bijeljina, after seven years of a positive trend, the number of closed entrepreneurial shops exceeded the number of newly opened ones. Businessmen warn that the continuation of such a trend could have serious consequences for the sector, which is one of the most important parts of the domestic economy.
Being your own boss in Republika Srpska is increasingly expensive. Contributions, taxes, fiscalization and a number of other obligations come due regardless of how good the month was. For small entrepreneurs, the calculation is increasingly difficult.
SENAD PETONJIĆ, small entrepreneur/old trade
“We are freed from the fiscal fund, we had it for a year, and somewhere for health and pension, with a bookkeeper, 615 marks. When you add those who have water, water, garbage collection, electricity, some more 150 marks… Well, approximately roughly 800 marks are the levies costing you.”
Costs are increasing, and each new increase is borne the hardest by the smallest operations.
Small businessmen are the most lively, but often the most burdened part of the economy of Bosnia and Herzegovina. These are the people who open hair salons, service centers, accounting agencies, small production facilities and much more. Although the public refers to them as small businesses, they are the basis of the everyday economy.
Data from Bijeljina show that the calculation is no longer sustainable for many entrepreneurs. After seven years of a positive trend, the number of closed businesses exceeded the number of newly opened ones
MILE STEVIĆ, Association “Entrepreneur” Bijeljina
“Total obligations here on a monthly basis are 64 percent, which is really too much of an imposition. The right of an entrepreneur to have two or more entrepreneurial businesses has been abolished. Why? The goal is to force the entrepreneur to pay VAT, to shut down the entrepreneurial business, to register the company.”
Among the biggest burdens of business are contributions, which recently have to be paid for supplementary and additional activities of independent entrepreneurs.
BRANIMIR ANDRIĆ, Regional Chamber of Commerce Bijeljina
“We are of the opinion that it is necessary to gradually reduce the contribution rate and adapt to the environment. This will certainly lead to an increase in budget revenues. There are also other regulations that we requested, such as tax issues for seasonal workers in production.”
Republika Srpska this year also allocates incentives to increase the competitiveness of small and medium-sized enterprises. However, businessmen say that support is not only money from the budget. They consider load reduction and predictable business conditions to be equally important.
