3.9 Start-up funding for young entrepreneurs
Access to information
Young entrepreneurs in BiH are informed about fundings through cross-country institutions and online platforms, as well as websites that provide previews about calls:
- BiH Chamber of Foreign Trade
- FBiH Government
- FBiH Ministry of Development, Enforcement and Obligations
- FBiH Employment Institute
- FBiH Development Bank
- FBiH Chamber of Commerce
- RS Government
- RS Ministry of Economy and Entrepreneurship
- RS Chamber of Commerce
- RS Entrepreneurial Portal
- BD Government - Department for Professional and Administrative Affairs
- BD Chamber of Commerce
- BD Employment Institute
Access to capital
Currently, there is no program to encourage entrepreneurship in BiH at the state level due to underdeveloped structure to support entrepreneurship at the state level. The SME Development Agency and the SME Development Financing Fund have not yet been established to withdraw and distribute European funds for this sector. In most countries in transition, such as BiH, there are only universal banks that are mostly involved in fundraising. Funds do not play a significant role in lending to entrepreneurship.
Young people mainly receive financial incentives from the competent entity, cantonal ministries, municipalities and competent institutions of BD. The biggest financial incentives for young people come from EU funds, international organizations, through projects of non-governmental organizations and embassies.
According to the competencies assigned to the institutions in BiH, the FBiH Ministry of Development, Entrepreneurship and Crafts is the institution responsible for the development of entrepreneurial incentives in FBiH. In addition, through the "Co-financing of Self-Employment – Start-Up 2021" program, the FBIH Employment Institute put a direct focus on young people by allocating funds in the amount of 3,000,000.00 KM.
The RS Ministry of Economy and Entrepreneurship is the competent institution for providing financial support to entrepreneurship in RS. In addition to the competent Ministry, there is also the RS Investment-Development Bank (IRBRS), whose role is to enable more favourable lending for youth entrepreneurship. Also, the IRBRS co-finances youth employment through loans or grants to start agricultural businesses. In cooperation with the RS Agency for Development of Small and Medium Enterprises, as well as with the Gender Centre, the IRBRS implements credit support programs in order to start entrepreneurial activities of young women. The RS Agency for Development of Small and Medium Enterprises, among other things, has competencies in the establishment of business incubators, technology parks and free customs zones with favourable conditions for the development of youth entrepreneurship.
The BD Government provides financial incentives for entrepreneurial ideas of young people.