Survey on the use of ICT in SMEs in Bosnia and Herzegovina

Nov 2020 – Jun 2021
Business Development, Market Research

Due to COVID-19 epidemic, the restrictions which the government in Bosnia and Herzegovina (BIH) introduced, forced nonessential businesses and companies that could not meet social distancing requirements to close or scale back operations to mitigate the outbreak. While some businesses could continue to operate through online sales or telework, for most, productivity would suffer.

BIH’s small and open economy (foreign trade is 81.3 percent of GDP) has been seriously affected by COVID-19 in almost every sector of the economy. In addition to the containment measures that have been introduced, an acute contraction in tourism and connected sectors, such as accommodation and food; real estate (5.0 percent); transport; and wholesale and retail sales will cut deeply into private consumption, which is still the main driver of the economy (74 percent of GDP) but is expected to decline by ‒1.9 percent in 2020.

Taking into consideration a huge damage to the economy and private-sector workers due to the COVID-19 epidemic, support to SME sector is essential to keep the economy alive. In addition, as lockdown measures have increased and will be unpredictable in future, demand has risen for e-Business, online promotion, sale and home delivery of SMEs products.

In this context, promotion of ICT use, especially e-Business, is imperative for SMEs to keep their business more profitable, sustainable and resilient to similar crises in the future. Westport Consulting will conduct a survey on ICT use in SMEs that will give valuable insights of the sector, needs, challenges and its potential support for further reinforcement and development of SMEs in BIH.

Towards a sustainable future