Today, at a telephone session, the Government of the Federation of Bosnia and Herzegovina, upon the proposal of the Federal Ministry of Development, Entrepreneurship, and Crafts, approved three funding programs totaling 28 million BAM under the 2026 Federation budget. The funds will be allocated according to the projects defined in the approved programs and will be disbursed to beneficiaries as non-repayable (grant) funds.
Small and medium-sized enterprises serve as a driving force for the economic development of the Federation of Bosnia and Herzegovina. Accordingly, the Federal Ministry of Development, Entrepreneurship, and Crafts, as outlined in the programs, plans in 2026, through the Incentive Program, to carry out several activities aimed at promoting the development of the small business sector.
As stipulated by the decisions, the Federal Ministry of Development, Entrepreneurship, and Crafts is launching a public call for the allocation of grant funds, which will be published in the Official Gazette of the Federation of Bosnia and Herzegovina, on the Ministry’s website, and in at least two daily newspapers distributed within the Federation. For the “Incentive for Chambers” project, support funds will be disbursed through a separate decision, based on a submitted letter of intent demonstrating readiness to implement the project within the framework of the defined guidelines, along with the accompanying project proposal.
As explained, the primary purpose of these decisions is to implement the annual Incentive Program for the development of small businesses and the development of entrepreneurial infrastructure in the Federation of Bosnia and Herzegovina.
22 Million BAM in Subsidies for Private Companies and Entrepreneurs
The first decision adopts the Program for the Allocation of Current Transfer Funds under the program supporting the small business sector, aimed at strengthening competitiveness through subsidies for private companies and entrepreneurs. The financial resources for the implementation of the Program, totaling 22,000,000 BAM, were secured by the 2026 Federation budget.
These funds will be disbursed to beneficiaries in accordance with the criteria established in the Program, the public call, and the Rulebook on Procedures for the Implementation of the Incentive Program for the Development of Small Enterprises in the Federation of Bosnia and Herzegovina.
Within this program, 20 million BAM is allocated to the “Strengthening Competitiveness of SMEs” project. The aim of this project is to enhance competitiveness and stimulate the growth of innovative, export-oriented SMEs through technological modernization of business processes, expansion of production capacities, and introduction of quality standards, circular economy practices, and improvement of energy efficiency, in line with the transition towards a green and digital economy.
For the “Incentive for the Development of Crafts and Related Activities” project, 1,000,000 BAM is allocated. The purpose of this project is to promote the development of crafts and related activities by co-financing the purchase of equipment needed to expand and modernize businesses, improve craftsmanship, increase product quality, and boost employment.
Additionally, 1,000,000 BAM is planned for the “Incentive for Newly Established Small Enterprises” project. Its goal is to maintain the positive trend of entrepreneurial activity by subsidizing equipment purchases required for business expansion and modernization, as well as providing mentoring services to improve product quality and employment growth.
5 Million BAM for the Construction of Entrepreneurial Zones
The second decision approved the Program for the Use of Capital Transfer Funds under the “Support for the Small Business Sector” program, aimed at strengthening competitiveness through capital transfers to other levels of government and funds. The financial resources for this program, totaling 5,000,000 BAM, were secured by the 2026 Federation budget.
These funds will be disbursed to beneficiaries in accordance with the criteria established in the Program, the public call, and the Rulebook on Procedures for the Implementation of Entrepreneurial Infrastructure in the Federation of Bosnia and Herzegovina.
Within this program, 5,000,000 BAM is allocated for the “Construction of Entrepreneurial Zones” project. The aim is to build new and improve existing energy, communal, transport, and communication infrastructure in areas where deficiencies impede entrepreneurial development in Federation business zones, as well as to establish or enhance business development services within the zones as a factor for local economic growth.
1 Million BAM for Institutional Entrepreneurial Infrastructure and Support to Chambers
The third decision adopts the Program for the Allocation of Current Transfer Funds under the program supporting the small business sector, aimed at strengthening competitiveness, through current transfers to non-profit organizations. The financial resources for the program, totaling 1,000,000 BAM, were secured by the 2026 Federation budget.
These funds will be disbursed to beneficiaries in accordance with the criteria established in the Program, the public call, and the Rulebook on Procedures for the Implementation of the Entrepreneurial Infrastructure Program in the Federation of Bosnia and Herzegovina.
Within this program, 400,000 BAM is allocated to the “Enhancement of Institutional Entrepreneurial Infrastructure” project. Based on identified needs, one of the key project activities focuses on promoting entrepreneurship, including the improvement and strengthening of business support systems in the Federation. The objective is to enhance the development of entrepreneurial support institutions and tech-entrepreneurial centers, as defined by the Law on Entrepreneurial Infrastructure in the Federation, and to encourage qualified service providers to establish or improve business support services throughout the Federation.
For the “Incentive for Chambers” project, 600,000 BAM is planned. The aim of the project activities is to foster networking among entrepreneurs and craftsmen, represent their interests in an organized manner, and develop chamber services in the Federation of Bosnia and Herzegovina, according to the Government Office for Public Relations.
