In the sixties both Bosnia and Kosovo were a part of  the most underdeveloped regions within Yugoslavia. The Olympics that took place in 1984 in Sarajevo were looked upon as an indispensable stimulant to unity and growth within the nation. For years Tito was seen as the “glue” who kept Yugoslavia together. However, after his death in 1980 the corruption and the weak political system became visible.

During the late eighties, after Tito’s death, Slobodan Milošević became the new leader and between 1990 and 1991 a war erupted between the Serbian controlled army on one side and Slovenia and Croatia on the other. These nationalistic sentiments were soon implemented by neighbouring Bosnia-Herzegovina. After the free elections in Bosnia-Herzegovina in 1990, the nationalists defeated the communists with great ease. On October 15, 1991, Bosnia-Herzegovina declared its independence. While its autonomy was soon acknowledged by the rest of the world, it was ignored by the Serbian parliamentarians.

The day after Sarajevo came under fire, Bosnia was officially acknowledged and became a member of the United Nations. It was during this time that Bosnian Serbians started the ethnic cleansing of Bosnian Muslims from the North and East of the country. This region is currently known as the Republika Srpska, with Banja Luka as its administrative centre.

Croatian Bosnians were supported by Croatia and fought side by side with the new Bosnian government against the Serbians, which was successful in some regions. This bloody war led to confusion and disbelief in the West. Pictures of the concentration camps, that were made   public in 1992, revealed how bad Bosnian Muslims were actually treated. Eventually this led to the instalment of 7500 troops of the United Nations, who soon seemed incapable of keeping the peace in the area.

The “drama of Sarajevo” on July 1995, when over 8000 Bosnian Muslims were murdered and a Serbian mortar attack at a market in Sarajevo killed 37 people, soon led to a change within the policies of the United Nations and the NAVO. The Bosnian general Serbian general Mladić received an ultimatum to pull back his troops from the region surrounding Sarajevo. He refused, yet after two weeks of NAVO bombardments he gave in on September 1995. The proposition of former president Bill Clinton to start peace negotiations in Dayton, Ohio, were soon after this accepted.

Currently the presidency in Bosnia Herzegovina is rotating between a Croatian, a Bosnian Muslim and a Serb. Nonetheless nationalistic parties still have significant influence. The population is highly dissatisfied with the economic situation within the country. An improvement of the social-economic situation should bring Bosnia Herzegovina closer to its membership of the United Nations. While the country is still divided by an ethnic borderline, ethnic tensions have greatly diminished. People are increasingly travelling between the Republic Srpska and Bosnia, and refugees are returning to their home country.

Business Start-up Centre Zenica

Zenica, which lies 40 kilometres North of Sarajevo, is a city with 150,000 inhabitants. The economy of Zenica has a monotonous history. In the past, it had three large companies in which 70 percent of the population was working. As a consequence of this, entrepreneurship is a relatively unknown phenomenon. However, this is changing. Within two years, twenty new companies were built  with, in total, 150 employees. From this point of view, Zenica has changed significantly during the last four years. Its unemployment level was high and people were pessimistic about their future prospects, but now new developments promise a better future.. With the arrival of foreign investors an additional 5,000 jobs were created. The major of Zenica, who is the first chosen major, has played a significant role in these changes. The region has considerable potential for small and mediate companies.

Officially, the unemployment rate in Bosnia-Herzegovina lies around 44%. Yet, according to Muhammed Granic, business incubator assistant in Zenica, this is 20% in reality, because there is a large gray market. “Our economy is developing and SPARK-BSC plays an important role in the reestablishment of a healthy economic climate. Our government is not in the position to function the way SPARK does. The cooperation with SPARK is also helpful since we do not have to reinvent the wheel. An example of this is that we exchange information regarding what is the best model for the incubation centre. Furthermore, we share coaches, trainers and consultants. For instance, we had to get into contact with BSC Kragujevac since 216 people showed interest in our trainings. This was far too much for us, as one training lasts 5 days, 4 hours a day.”
Zenica Economic Development Agency (ZEDA) is one of the most important partners of BSC Zenica. ZEDA was initiated in 2004 by the municipality of Zenica. They were the ones who convinced SPARK to start a BSC in Zenica instead of Mostar. Together with BSC, ZEDA wants to create new economical structures. With financial support of the municipality and the EU an old factory has been bought. This factory was rebuild into a business incubation centre which currently houses numerous companies. Currently, a new centre has been built  by ZEDA and BSC Zenica, which is now ready for the winners of BPC. However, there was a minor conflict as the municipality solely prefers to use the new centre for new technological companies. Yet, since these companies are not yet realised, and we do not want to keep the building vacant, in first instance other businesses will also be established here.

The preparations for a Business Start-up Centre in Zenica, Bosnia-Herzegovina, started in February 2007. Both partners and an office space had to be arranged en in May 2007 BSC Zenica was official. BSC Zenica works together with four employees, one internee and a manager of the business incubation centre. “It is a lot of work since we organise the BPC and lead the business academy and the office. Together with other municipalities, we are presently discussing a possible cooperation  to develop multiple incubation centres.

The project has made vast achievements within the first year: People are interested and have confidence, just like companies and our partners. Foreign speakers, amongst others from the Netherlands, are invited and we provide various trainings, like in internet marketing, Public Relations, communications, IT and export. “We also look at local and foreign companies for doing business with our winners.”
 
While we are satisfied about the first year’s results, we also encountered difficulties. “Not everyone is aware of the advantages that this project offers. People are sceptic and they do not always believe that we donate money for registrations and trainings without further restrictions. During the promotion campaign people said that the Dutch government was only in their country to steal their ideas! This is a large consequence of a lack of entrepreneurial spirit. In the past Zenica knew three large companies for which nearly everyone worked for. Sometimes it is difficult to convince people to take part in the project. In addition to this, they sometimes simply seem to lack creativity, ” says Adela Berisa. 

Overall, the promotion campaign was succesful. ´There were two promotion rounds. During the first round we invested a vast amount of money in advertisements, which was not necessary in the second round. In total, we received 35 business plans, of which 31 met all standards and were admitted to the competition.

"they gave me a future”

Mahir Prijic is a senior student studying economics. Through Nino, the director of BSC Zenica and economics professor, he heard of BPC. He decided to participate with his idea for a company that sells towels, slippers and baby products such as bibs. “What I would have done without BSC? I have no idea. I followed the trainings and than the idea came automatically. I finally became third! I am very grateful to BSC, since they gave me a future and it forms my personality,” he says. Laughing he adds: “And I have become very popular amongst women! ” He notices that the cooperation between BSC and the municipality can be improved. In first instance, the idea was to accommodate solely technical companies within the business incubator centre, but luckily this is no longer the case. Muhammed (incubator manager, red), has really helped me with the problem of lacking company space.’ 
 
His father already gave him a machine to fabricate the products. He has a factory, producing robes which are, amongst others, exported to Italy. Mahir is clear about starting a new company, instead of being part of his father’s factory. Nevertheless, he will start working in his father’s company as the machine is situated here and he can make use of his father’s left over materials free of charge. The production will start next week and Mahir will open a store in Zenica in which he will sell his products.

Mahir received a microcredit of  €8.000,- that will be used for the purchase of new machines. Next, the goal is for one employee to produce 500 towels in different sizes and slippers that will be mainly delivered to hotels. He already made appointments with this hotel. The expected total turnover in the first year will lie around € 25.000,- , of which € 7.500 is profit.

In five years he hopes to have twenty employees. He would like to expand his assortment of baby products and additionally he wants to produce sheets. “But it is difficult to say how this will develop, as this process is dependant of various factors. For example, it depends on whether I am able to export my products. Nevertheless, I hope to become one of the market leader in Bosnia-Herzegovina.”


"What I am about to do does not exist in Bosnia-Herzegovina"

Merzuk Omic is a devoted Muslim who studies Arabic and Persian. Currently he has dedicated all of his time to his new company Fedi doo. A company that will produce traditional Muslim clothing for women. “Conservative fashion”, as Merzuk calls it. Conservative  in that it concerns clothing that covers everything, thus short skirts being excluded. Nevertheless, at the same time this clothing is modern as it follows the latest fashion trends. He thinks it is a great business opportunity, since this clothing is presently imported from Turkey. “What I am about to do, does not exist in Bosnia-Herzegovina, he says proudly ” And he adds quickly: “Naturally this clothing is not produced solely for Muslims, for non-Muslims  it is also very suitable.”


In ten days he will start the production in the basement of the new business incubation centre and his office will be situated on the first floor. ´In the beginning everything will be done by hand, but next year I want to design my clothing on the computer. ” The designing of clothing will not be done by myself, I will leave this up to Edina Osmancević. She is a famous designer en works for the fashion show in Zenica: A large event since most of the clothing that is exhibited here is exported all through Europe.” In the beginning he will sell his clothing in the two stores that are run by his sister, a wholesale business and he also hopes to market his items by using the internet. 

With a microcredit of € 10.000,- and a private investment on an additional  € 10.000,- he expects to have a yearly turnover of € 100.000,- of which 10 to 15% is pure profit. In the beginning he will have four employees in charge, a number that will increase if he becomes a market leader of a well-known brand in Bosnia-Herzegovina. He gives himself three years to achieve this, the expected turnover will then be € 250.000,- . Around that time he also hopes to export his products to other countries in Europe.

About BSC he says: “This is truly a fantastic initiative. BSC provides us with a change, that I like to grab a hold of with both hands. I already had this plan in mind, but with the help of BSC everything goes much faster. The free advice is very important just as the other facilities en services they offer. For example, the very attractive low interest percentage of 7% for a microcredit. However, I do think hat the process can be speeded up. It cost us up to seven months to put the idea into practise. However, since it normally takes a year to register a company,  it was relatively fast after all.”