| Summary: | Small enterprises, within the market
economy, are initiators of economic development and an
important part of every national economy. Due to the nature
of private property, entrepreneurial spirit, flexibility and
adaptability, as well as their potential to react to the
challenges and turbulences in the environment, small
businesses give a special contribution to economic growth
and higher employment. Entrepreneurship and small
business represent a significant and fundamental source for
creation of new jobs and expansion of new business
practices by providing a significant contribution to economic
growth. This applies both to small businesses in the Republic
of Srpska and the ones that are located anywhere in the
world. The role of small enterprises is especially important
in transition countries. During the global economic crisis,
small businesses have, both in developed economies, and in
the Republic of Srpska and BiH as a whole, proved to be
resilient, although this period was characterized by a very
poor business environment. The importance of entrepreneurship
and small firms in developing national economies
are often the subject of professional and empirical
discussion. However, recent developments have further
confirmed the views that small businesses, in dealing with all
the negativities of poor business environment in times of
crisis, more quickly adapt to changes compared to larger
enterprises and companies. This quality of small enterprises
gives enough reason to pay special attention to the
theoretical and practical aspects of this phenomenon, in
order to make appropriate business decisions and
implementation of development policy as a more efficient
model for faster economic development of the national
economy. The subject of this paper is to define the
importance of small businesses in the economic growth of
developed and developing countries. Through researching
analyses, this paper examines the role and importance of
small enterprises in economies of the European Union (EU)
member states and the Republic of Srpska and BiH,
especially regarding its influence on the employment growth
and added value in a period of economic crisis and postcrisis
years. This paper aims to explore and emphasize the
interdependence between growth of small firms and new
added values, reviewing economic development and
employment in both developed and economies in transition.
This paper attempts to present the importance of effects of
analyzed economic indicators as a result of small enterprises
in two separate periods (the period of global crisis and postcrisis
period) and provide guidance and recommendations to
policy makers on economic role of small firms in
macroeconomic stability of the economy.
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