By Vjekoslav Domljan, Alisa Gekić, Tomislav Majić, Majda Mujanović Babović and Rasim Tulumović
After an eleven-year absence, Bosnia and Herzegovina returned to the global research map of the Global Entrepreneurship Monitor (GEM), the world’s largest and most comprehensive study of entrepreneurship. This milestone was made possible thanks to the support of the LINK Entrepreneurial Center Mostar.
The findings of the new GEM Bosnia and Herzegovina National Report paint a striking picture: the country is rich in entrepreneurial energy and ambition, yet constrained by systemic weaknesses that prevent this potential from translating into long-term, sustainable growth.
A European Champion in Early Entrepreneurship
Few countries in Europe display an entrepreneurial spirit as strong as Bosnia and Herzegovina. According to the GEM report, 81.3% of citizens know someone who has started a business in the past two years, and 22.7% of adults are engaged in early-stage entrepreneurship. These figures place Bosnia and Herzegovina among the leading countries in Europe – and globally – when it comes to early entrepreneurial activity.
In other words, starting a business is culturally accepted, visible, and widely practiced. Bosnia and Herzegovina can rightfully be described as a European champion of early entrepreneurship.
Yet this promising beginning rarely leads to lasting success. The GEM report reveals a stark gap between business creation and business survival. Only one in four early-stage businesses in Bosnia and Herzegovina survives beyond 3.5 years, compared with a European average that is nearly three times higher.
This weak transition from early-stage to established entrepreneurship highlights deep structural challenges. Too many ventures stall or shut down before they can scale, innovate, or create stable employment.
Strong Global Outlook, Weak Domestic Foundations
Bosnia and Herzegovina’s entrepreneurs demonstrate impressive international orientation at the early stage. More than 3% of early entrepreneurs earn over half of their revenue from exports, making them global leaders in this category. By comparison, the European average stands at just 1.3%.
However, this global strength fades as businesses mature. Established firms in Bosnia and Herzegovina underperform in technology-intensive sectors and in the creation of products that are new to the world. The most common reasons for business closure are unprofitability, lack of institutional support, and the absence of sustainable market opportunities.
Perhaps the most sobering finding comes from the National Entrepreneurship Context Index (NECI). Among the 56 countries analysed, Bosnia and Herzegovina ranks last in terms of overall conditions for entrepreneurial development.
The weakest areas include:
- Entrepreneurial education
- Availability and quality of support programs
- Start-up–related public policies
These shortcomings significantly limit entrepreneurs’ ability to grow, innovate, and survive – despite their motivation and drive.
A Path Forward: Turning Energy Into Impact
Despite these challenges, the GEM report identifies clear areas of opportunity. Bosnia and Herzegovina benefits from open markets, a strong entrepreneurial culture, and the accumulated experience of early-stage entrepreneurs. The challenge is not a lack of ambition, but a lack of systems that convert ambition into results.
To close this gap, the report calls for a reform-oriented approach grounded in productivism: a focus on productive, value-creating entrepreneurship. Digitalisation and decarbonisation should serve as strategic pillars, supported by active collaboration between local communities, policymakers and the private sector.
In line with the Framework for Achieving the Sustainable Development Goals, the report emphasises the importance of establishing centres of excellence that connect research, innovation, and industry. These hubs can help move the country from fragmented initiatives toward coordinated, sustainable development.
Equally critical is sustained investment in education, mentoring, and support programmes that help entrepreneurs make the leap from early-stage activity to established, resilient businesses.
Bosnia and Herzegovina clearly possesses the entrepreneurial energy needed to drive economic progress. But without structural reforms, coherent policies, and long-term support mechanisms, that energy will remain underutilized. If the measures outlined in the GEM 2024/2025 report are implemented, the country has a real opportunity to transform its status as a European leader in early entrepreneurship into a broader success story, one defined by sustainable businesses, quality jobs, and rising living standards.
The challenge is clear. So is the potential.
Access the GEM Bosnia and Herzegovina National Report.
Vjekoslav Domljan, Alisa Gekić, Tomislav Majić, Majda Mujanović Babović and Rasim Tulumović are members of the GEM Bosnia and Herzegovina National Team.