PROMOTING AND STRENGTHENING SME CREATION:

THE USE OF FRANCHISE MODEL

Merima AVDAGIĆ, M.Sc.

The eGovernment Project Manager,
UNDP BiH, M.Tita 48, 71000 Sarajevo, BiH
mavdagic@undp.ba

Zlatan ŠABIĆ, M.Sc., Ph.D. Candidate

University of Sarajevo, Faculty of Economics, Trg Oslobođenja 1, 71000 Sarajevo, BiH
and
eGovernment Specialist, UNDP BiH, M.Tita 48, 71000 Sarajevo, BiH
zlatan.sabic@efsa.unsa.ba

Tarik ZAIMOVIĆ, M.A.

University of Sarajevo, Faculty of Economics, Trg Oslobođenja 1, 71000 Sarajevo, BiH
and
ICT Portfolio Manager, UNDP BiH, M.Tita 48, 71000 Sarajevo, BiH
tarik.zaimovic@efsa.unsa.ba

Abstract
Strapped between 20th century that’s marked with permanently engraved suffering, and
globally oriented 21st century, BiH continues to evolve. Throughout its recent history, Bosnia
went through one-party, unitary system as part of the SFRY, trubulent war, post Dayton state
of independency, up to its current status of economic, political and ideological transition –
not an ideal market for private business growth. In order the combat this situation, a vigorous
and dynamic economic injection is needed which will drive Bosnia toward economic
prosperity, political stability, and ultimately ease the process of European integration. One
way to support and encourage a sustainable economy is through SME sector, particularly,
through franchise model. More specifically, for start up businesses, franchises can be viewed
as an available instrument for encouraging, developing and nurturing entrepreneurial talent,
promoting corporate governance and transparency, as well as attracting foreign investment
resources and competencies – both tangible and intangible, to the country in transition. This
paper is aimed at analyzing and proving that investments through franchising model are an
excellent way of encouraging a sustainable regional economic development and can serve as
a mean of promoting and strengthening home country SME sector, with focus on BiH as a
country in transition within SEE.

Keywords
SME creation, franchising business, sustainable economic development
1. Short History and Current State of Bosnia and Herzegovina
1.1 Short History of Bosnia and Herzegovina
Bosnia and Herzegovina is a country with a very complex and turbulent past that continues to
evolve. Throughout its recent history, Bosnia went through unitary system as part of the
SFRY, four years of devestating war, post Dayton state of independency proposing quite
dysfunctional system of municipalities, cantons, two entities, one district and a distant central
government, up to its current status – which can perhaps best be described as transitional, with
constant atempts to regenerate its inert economy and move toward the European integration.

1.2 Current State of Bosnia and Herzegovina

As the result of war and due to non-satisfactory reconstruction and development after the war,
BiH is a disintegrated community, and this is evident in demographic, administrative and
economic structures of the country. Reforms resulting from Dayton Peace Agreement placed
Bosnia in a state of ineffective and complicated four-level Federation.
This complex structure also hinders business development. “The current lack of legal and
administrative support for start-up companies presents a serious obstacle for re-integration
objectives and economic prosperity”1. The burden of ‘red tape’ and inefficient administration
reflects on the business – and just the fact that it takes over 45 days to register a new business
in BiH is quite alarming. The single economic space must be established for desired
economic prosperity.

2. The Role of SME Economy and Franchise Business Model in BiH

2.1 Background

There is quite a consensus when it comes to admitting the importance that SME have in post
war economy reconstruction, and so is the case in BiH. They play a crucial part in stimulating
growth, generating employment, and contributing to capital generation and poverty
alleviation. One way to encourage the SME growth is through the franchise model.
Specifically, using franchisers as an alternative growth pattern can significantly enhance SME
sector creation and sustainability.

The word ―franchise comes from the Norman French word "fraunchise," which was derived
from the French word "frank" – free man, free to work something.2 The English word
"franchise" originally was used to describe liberation from any prohibition, permission, or
privilege – by which a company is allowed to do or not to do something for which it would
normally not have rights. Franchising, described as “granting or licensing of specific
intellectual property rights by one agent (franchisor) to another agent (franchisee)”3 provides
access to tangible and intangible benefits and privileges. As such venture, it is a business
strategy between business partners acting in symbiotic and complimentary relationship,
designed to maximize profits through increasing market share and minimizes risks to its
participants. In its recent decades, franchise model has shown a remarkable resilience and
continuity throughout the economic ups and downs – which is why it becomes an interesting
part of the economic development strategy for the countries in transition, BiH being a perfect
example. At the very root of the franchising concept lies the method of interlacing the
1
Shilling, S., (2003)
2 The Random House Dictionary of English Language, (1973)
3
Blair, R.D., Lafontaine, F., (2005)

2
franchiser's brand of products and/or services with reliable support systems and by self-
motivated franchisee owners. It is this high level of motivation, combined with a rigid
business format that has allowed franchising to thrive, even in economic recessions.

2.2 Potential Advantages and Drawbacks

2.2.1 Potential advantages
The role and importa`nce of SMEs in the country’s economic sphere is undeniable, and
franchise model as an SME development tool has a significantly higher success rate when
compared vis-à-vis independent businesses (this comparative advantage has been reported
worldwide – Philippines: 95 % of franchising SME compared to 25 % of independent
companies survived the 1997 Asian economic crisis; Australia: franchising as a business
model is 2.5 times more successful than other SME4). Consequently, there are numerous
advantages for those entrepreneurs who choose franchise model as growth option: it can
stimulate growth, contributing to capital generation and poverty alleviation5. Specifically,
franchise model encourages SME development in every imaginable business sector and is a
great catalyst for job creation, skills transfer and wealth creation.
From the franchisor's perspective, this partnership offers an enhanced rate of expansion and
improved market penetration without large sum of capital as well as reduced risks as a result
of the smaller financial commitment of the franchisee. For developing countries, socio-
political and economic aspects tend to be inefficient and unstable, increasing the risk of the
investor; franchising model decreases this risk because less capital is poured into opening
company’s own plants, and deliberate assistance that franchising model offers to franchisee:
proven training methods, desired business conduct, on-going assistance, marketing advice,
proven technology transfer including machinery and hardware, standard of service including
know-how, quality skills, managerial assistance and entrepreneurial spirit.
For the franchisee located at the host country, it opens new business opportunities through
well-established production systems and procedures with proven concepts and methodologies,
expert services and operational support, as well as access to new markets. In particular,
franchising offers a starting point, guidance, know-how knowledge transfer, already
established supply chain, and eventually partnership. This idea of know-how and
entrepreneurial nature is very important in the SEE economies, BiH being one of them. Due
to economic, political and social heritage within SEE, many countries within the region have
not been truly exposed to private entrepreneur opportunities but also its challenges.
Franchising model takes this into account by providing and nurturing this entrepreneurial
spirit and specific know-how.

2.2.2 Potential drawbacks for the host country

“Franchising is not panacea”6, and it is by clear that is has its downfalls; in fact, for the
success of the economy, they can not be ignored.
Although the chances of launching a successful franchise business are high, there are still
franchises that sink to the ground, and the reasons for fallen franchises vary greatly. Many
problems come from the general lake of preparation – from both, franchiser and franchisee:
lack of dedication from franchiser for perfecting business strategies, lack of entrepreneurial
spirit from franchisee, general unwillingness to follow the system, and resulting lack of
quality control. Murray (2003, p. 17) states that disadvantages specific to the franchisor is the
dangers of franchisees not sticking to the franchisor's standards, the potential for a less
profitable business, potential conflicts with franchisees, and lack of trust between the parties.
4
Blair, R.D., Lafontaine, F., (2005)
5
Murray, I., (2003)
6
Svetlicic, M., (2006)

3
This affects both, the franchiser and the franchisee, and in most extreme cases might affect
world-wide reputation of the firm. This problem is usually more widespread in the
developing countries as quality control processes are not necessarily in place and work ethics
and culture may be very different from the firm’s home country.
The biggest indirect thread of the franchise model within the host country is a possibility of
building a large percentage of its economy around it. It is important to realize that although
the franchising model does imply the local ownership of the unit, it still holds the attributes of
a mechanism that makes it possible for foreign investors to exercise management and control
over host country firms and its economy. This includes various corporate governance
mechanisms that drive and maintain a particular business, where the local channels can be
excluded or marginalized. Thus, it is imperative to realize that the franchising model is not
necessarily a long-term development strategy for a country, but rather a short to medium term
strategy for a country in transition, during which the hindered economy in transition period
can build its capacities and benefit through the encouragement of the local SME sector.
“Franchising is not a gasoline but oil of economy’s engine”7: franchisers alone are not enough
to create and sustain the SME sector within the country and serve as the fuel for the country’s
economy.

3. Market analysis for the Franchise Opportunities in BiH

When discussing franchise business model, it is essential to look at country’s overall
condition as a critical factor for its success. These conditions are largely economic in nature,
but also have its strong legal and social roots.

3.1 Entering Bosnian Market as a Franchiser: Market Analysis

The actual transition process of Bosnian economy started towards the end of the war – around
the beginning of 19968, when Bosnian market slowly opened up to a great variety of
international products and services, many of which are from its neighboring countries.
The country’s GDP and other economic factors continue to improve – as shown in table
below:
Table I: Economic indicators in BiH 9
Indicators 1999 2000 2001 2002 2003 2004 2005 2006
GDP (billion) 4.6 5.1 6.0 5.9 6.2 6.9 8.0 8.3
GDP per capita 1,231 1,356 1,472 1,553 1,642 1,796 2,095 2,095
Real GDP growth rate 10.0 5.5 4.5 5.5 3.5 6.0 7.5 7.7
Annual inflation rate -0.9 4.8 3.1 0.3 0.6 0.4 2.1 2.1
Annual unemployment rate 39.3 39.7 40.3 40.9 42.0 47.2 30.0 28.4
Average monthly net salary 175 191 226 228 247 258 275 284
*All amounts are in Euros

Closely connected to the local economy development is the so called ‘absorption capacity’ of
the host country – BiH. In order to realize on the full benefits of a franchise model, the
inefficiencies of local market must be addressed, as the “positive effects of franchising
opportunities don’t happen automatically”10. Rather “it highly depends on local absorption

7
Svetlicic, M., (2006)
8
Nicholl, P., (2003)
9
Basic, H., Becirovic, M., Korica, S. (2006)
10
Svetlicic, M., (2006)

4
capabilities”11 and these capacities refer to socio-political and economic environment of a
host country – its existing condition of physical infrastructure, education and training resource
level, administrative and legislative framework, supporting industries and other factors
allowing for full exploitation of franchising model benefits. One of the most obvious
absorption capacities to mention is “human capital development”12, and thus, local R&D
development is necessary in order to increase competitiveness of a nation, and attract
franchisers – since “knowledge creation attracts foreign investors”13.
In addition, there are also “other favorable conditions, mostly related to market size, the levels
of urbanization, literacy and corruption and proximity to larger franchising nations”.14 Level
of urbanization and market size both have a positive correlation with the development of
franchise business. Within emerging SEE markets, the market size and urbanization factors
are certainly present (in some cases not within the single country such as BiH, but within the
region as markets are combined). Also, its proximity to larger market – larger franchise
nations of EU is significant as it introduces the regional proximity and consequently provides
exposure to number of factors that stimulate franchise development.

3.2 Institutional Set-up and Current State of Franchise Opportunities in BiH

The creation of a vibrant business environment in accordance with the standards of the EU
and regional development initiatives embedded in the local market economy should be one of
the major goals of the BiH government’s economic policies. Just recently, BiH has signed the
SAA agreement, moving the country one step closer to EU – mandating additional political,
legal and economic changes. However, although the awareness of this important aspect for
country’s economic prosperity is being acknowledged, it still needs much focused joint work
of the leading institutions in order to build a more competitive business environment – from
improving the legal framework, to mainstreaming simple entrepreneurial activities.
Currently there are no laws regulating franchise activities, and no legal basis nor reprehends
for any consequent actions. Franchise business is not directly mentioned in BiH law literature
(trade law) and therefore, there is no legal standard for the development of franchising and no
legal parameters for franchising agreements, allowing the business practices on the ground to
determine the appropriate interaction.
The government’s dedication to the reform of the national economy can be seen in its desire
to attract foreign investment for the development of BiH’s domestic and international
markets. One of the prerequisites was the process of privatization, which improved the
environment for franchise model allowing it to gain importance as one of the instruments for
economic improvement15.
Currently, BiH market offers clear advantages for potential franchise entrepreneurs. There
are three main reasons for why should franchisers enter BiH market:
1. Environment for investment
a. Although there is a general dissatisfaction about the business climate, BiH
accelerated Economic Reform Process has contributed significantly to its
improvement. The view of BiH when it comes to such reforms is clear:
eliminate legal and administrative obstacles for doing business in BiH, as well
as create the most attractive business environment in SEE. “Our view on BiH
is that the investment climate for SME has much improved over the last years.

11
Svetlicic, M., (2006)
12
Svetlicic, M., (2006)
13
Svetlicic, M., (2006)
14
Parker, G.W., (1995)
15
BiH Interim Poverty Reduction Strategy Paper, (2001)

5
 The country has open access to European markets, which are very close to the
country and has very strong human capital.” 16
b. As a potential candidate country for EU accession, the main goal of BiH is EU
membership. BiH has started its process of negotiation to join the WTO and it
has signed all the Free Trade Agreements foreseen by the Stability Pact’s
Memorandum of Understanding on trade.
2. Financial stability
a. BiH has the most stable currency in SEE (directly linked to Euro) and the
lowest inflation rate in the region. “Stable currency and low inflation rate are
important elements for macro-economic stability and for continuous increase of
foreign investments in the country”17 and this certainly includes the franchise
business opportunities.
3. Privatization
a. Privatization process is very important for any business, including franchise
opportunities, and in BiH it has been continuously improving – especially over
the last year. State owned capital in the enterprises dealing with electricity,
public traffic, telecommunications, water supply, mining, forestry, public
media and other enterprises of strategic importance, is also being privatized
with accordance with the Law on Privatization of Enterprises and under special
Government privatization programmes. This is very interesting for the
franchise business as it expands the market areas that can be pursued.
At the same time, the overall improvement within BiH economy is certain. The extreme
poverty is not noted in BiH, while 17.8 % of population is considered to be poor18. Although
the overall economy of BiH is improving, it is important to realize is that the economy of
Sarajevo canton is growing faster then the rest of the BiH territory and is responsible for large
percentage of these positive statistics. One of the indicators of economic power in Sarajevo is
the fact that Sarajevo Stock Exchange measured 283,923,277Euros in 2005 (more then
doubling in value from 2004) while the second largest Bosnian stock exchange – Banja Luka
Stock Exchange measured 142.194.184Euros – half the value of the one in Sarajevo19.

3.3 The Effect of Franchises on the Transition Economies: OBI Case Study
In order to better understand the impact that franchise business can have on the local
economy, concrete results from an actual example of the franchise company that operates in
BiH were researched: OBI – a “Do It Yourself” home improvement company that originated
in 1970 in the Alstertal Shopping Centre in Hamburg Poppenbuettel.

3.3.1 Idea and principles of OBI franchise business model

OBI franchising model relies on the initiative of the individual entrepreneurs and benefits
from their commitment and creativity and the capital of medium-sized enterprises – therefore
it is an initiative based on the fact that “all business is local”. In return, OBI offers all the
advantages of a large enterprise such as IT and marketing methodological support, while at
the same time avoiding the disadvantages of centrally controlled hierarchies in groups of
companies since the local entrepreneurs own the store. In accordance with OBI philosophy,
the OBI franchise system works in a spirit of partnership where some things, such as the 'OBI'
brand name, are standardized and others can be decided individually by the franchise partners.
Under a franchise agreement, the franchisees benefit from a comprehensive service package

16
Reinnerman, D., (2005)
17
Kozaric, K., (2006)
18
Preliminary report on poverty in BiH, (2001)
19
Basic, H., Becirovic, M., Korica, S. (2006)

6
by means of which the franchisor frees them from a large number of administrative tasks, and
offers them the advantages of bulk purchases as well as the opportunities of large-scale
advertising campaigns under a well-known brand name.
Perhaps the most important benefit of the franchise model is that each store opened up
remains in the hands of independent entrepreneurs situated in the local context, who can react
to the specific regional and local market forces. For the customers, this means a favorable
price / performance ratio and considerably more intensive service – because of the brand
name standards and continued support. “All business is local”20 principle has been the
success factor for the rapid growth of OBI: growth as a group of companies, rather then trying
to grow centrally.

3.3.2 OBI start-up: key problems encountered

Upon deciding to enter the OBI holding, the initial contact with a company was made in
October 2001; however, it was not until the November 2002 that the franchising contract was
signed. OBI CIO was quoted saying that “one of the biggest issues is that the time for
negotiations is underestimated, and so was the case with OBI”21. “There are four pillars of
the franchise system: the franchising agreement which is permanent, the handbook that
summarizes the transfer of know-how, the franchise trainee training delivery, and the list of
services offered in this partnership”22. “And we had issues with the first pillar – getting a
contractual agreement”23. On the first contact, the message from the OBI headquarters was
simple and clear – ‘no’; no to entering a Bosnia volatile market, and no to doing business with
locals. OBI was interested of entering the Balkans through Croatia which was in a more
legally, politically and economically sound state, and certainly not by entering through Bosnia
– a country still struggling with passing the most basic legislations and practically non-
existing executive powers. This was highlighted by the startling and eye-opening fact that the
country had no laws regarding franchise arrangements, thus, making a franchise agreement
respected by both parties and ensuring the executive mechanisms and sanctions for
disregarding the agreement extremely difficult. Finally, upon extensive talks, OBI agreed to
enter more serious rounds of negotiations, where the focal points of discussion were various
forms of market surveys, including micro and macro development forecasts for Bosnia and
Sarajevo region specifically, price indexes and consumers’ purchasing power, characteristics
of the main target groups, availability of “do it yourself” stores in BiH and the market need
for it. Throughout these exhausting statistical analyses, local entrepreneurs have a constant
shadow working against them – a damaged country image that provides infertile ground for
investment and development.
It is clear that OBI headquarters was closely involved in the actual construction process
including the location choice and precise building standards, but they were also eminent in the
organizational set up and marketing strategy chosen. Specifically, prior to the actual opening
of OBI store in Sarajevo, the detailed marketing campaign was designed with full support of
the OBI headquarters. This was done by using the standardized materials and marketing
channels developed by OBI centralized specialists for the opening of every new OBI store; on
the other hand, this is adapted to the local culture, customs and the overall localized
environment. Also prior to opening, the organizational management of all levels including
model for cashiers, store experts, and various managerial levels has already been established
by using the proved OBI models. It is worth noting that as the overhead function that
supports all activities is the effective IT support – through which each OBI store like the one

20
OBI Web Site, (2005)
21
Avdagic, E., (2006)
22
Nabel, Schulze, Wessels, (2001)
23
Avdagic, E., (2006)

7
opened up in Sarajevo are connected to the main centrally controlled centre where all the
requests and transactions are registered, and where the main supporting statistics are produced
that are shared back with the OBI stores. With these refined statistics, the strategic
development planning for each store is crystallized – through round tables with local owners
and OBI headquarters.

3.3.3 Current operations and franchise effect on local economy

Currently, OBI holding in Sarajevo is about to enter the sixth year of its successful operations:
its revenues have increased 14.9 % during the three years of operations. The assortment of
products changes quarterly – depending on statistical analysis produced by the OBI central
holdings. Consequently, the market strategy is developed with the input from the local
owners and local market management team.
Perhaps the most important things to highlight from this case study are the positive effects on
the local community – so that the franchise model is valued by its impacts: increased
employment (two OBI stores, each employing up to 120 employees), increased economy of
scale through medium-enterprise arrangement, and perhaps most importantly, helped to place
local ideas (from local entrepreneurs not necessarily involved in OBI franchise) and products
in the franchise model through well established supply chains. This opportunity to place the
product and expend the supply chain is very significant for developing country as it provides
access to already existing infrastructure – which includes everything from supply, marketing
and retail channels – and a small local entrepreneurs usually have no resources to do this by
themselves, and certainly not on a high scale which is needed in order to be competitive.

4. The Need of a Franchise Center: ‘One Stop Shop’

In BiH, the complex administration, the lack of entrepreneurial spirit, the deficiency of quality
data, and inefficient and ineffective access to information are some of the main reasons for
discouraging the franchise model. Even 12 years after the war, BiH is often viewed as
insignificant little country that not many people have heard about, and those that have usually
recall the violent war. Furthermore, foreign investors usually look at the statistics per country
– not per city, and Sarajevo and its surrounding regions are very much different then the rest
of the Bosnia, being that it has quite an economic capacity and that huge economic disparities
within Bosnia strongly exist. The ‘gray’ economy is not taken into account, distorting the
accuracy of information to interested investors even more. Consequently, the accurate and
relevant information about the real market capacity is deformed, twisted and marginalized.
All this does not foster the investing environment – on the contrary.
At the same time, there are issues within the country that need to be addressed. One of the
most obvious is a poor access to relevant information, and lack of quality data and services in
general. Considering the socialist and communist past where the entrepreneurial spirit was
not even thought of yet alone spoken of, this is quite an issue as the BiH population does not
have a natural ‘niche’ for owning a business: this is not America where children grow and sell
roses at the early age in order to make some pocket money! Thus, this access to quality
information that will inform people about the possibilities of investment and owning a
business through franchise model is of crucial importance.
With all the issues listed above, it is clear that something needs to be done in order to address
the problems of potential investors. Currently, there are some agencies in BiH that aim at
supporting SME creation; however, most of them depend on international donations and are
run as a money-making short term programmes. There are currently no organizations in BiH
dealing with franchising model directly. For this purpose, the creation of a franchise center as
a ‘one stop shop’ is advocated, serving as an association responsible for communicating with
potential franchisers interested in investing in BiH region – ‘one-stop shop’. Firstly, the

8
association would provide accurate information about BiH market capacity and its economic
power: supply most recent information on the business climate, and micro and macro
economic indicators, legal updates in the relevant fields etc. To do this successfully, the ‘one
stop shop’ franchise center must have access and continue developing marketing channels for
both – internal (franchisees) and external (franchisers) investors involved, and constant focus
on improving the international image of BiH and acting as a match-making organization i.e.
providing match-making services between interested entrepreneurs in BiH and potential
external franchisers.

Looking ahead, such franchise center can serve as a more compact and all-encompassing
organization, which will extend its services – further capitalizing on the idea of a ‘one-stop
shop’. Consequently, it can offer various consulting services for the first time franchise
owners that need specific pointers on how to own and run a business. Providing practical
assistance related to the establishment of business in BiH, and drawing the right correlation to
already existing government and non-government institutions is beneficial. This is closely
connected with the idea of fostering the learning culture and economy, as well as overall
improvement of the favorable business environment, which is something that can help greatly
and make quite a difference for the developing country without abundance of resources. By
addressing these concerns, this ‘one stop shop’ can serve its overarching purpose –
improvement of local economics, and with it, bettering of living conditions and improved
standard of living including social and environmental richness.

5. Conclusion
Perhaps the best way to summarize the idea of international business and its impacts is by
quoting Bernard Shaw “wise man adjusts to the world, unwise tries to change the world
according to his ideas”24. It is evident that the globalization is a fact in today’s world, and
thus “adjusting is the rule of the day”25. Therefore, the question is not weather to adjust to
globalization or not, but “how to adjust”26?! “Design a strategy and unlock internal resources
in order to enhance and keep competitiveness.”27 One of the possible strategies is the
franchise model. With SME market being acknowledged worldwide as a powerful economic
sector that enhances economic growth, decreases unemployment, and generally elevates
poverty, franchise model is an excellent way to better the success of SME sector
establishment in the transition countries such as BiH. Due to the economic, political and
social environment within BiH, the franchising model becomes particularly attractive as it
offers favorable starting conditions for countries that lack specific skills and know how for
establishing and running a business; it offers starting point and guidance in a country where
people do not know where to start and are afraid of having a sole responsibility for running a
business.
For BiH, the inevitable strategic, political, economic, administrative and legal change are an
anticipated reality – though it can not be forced. It is now at a turning point of its existence.
Political and administrative reforms are indeed necessary for country’s prosperity and
inclusion to EU; however these same reforms require political negotiations that often seem as
an endless, vicious circle where the average citizen does not feel the benefits. Nonetheless,
BiH is hungry for new vigor that would boost up its inert and administratively complicated
economy and inject energy in its people; franchising opportunities can help, serving as a

24
Shaw, B. (1999)
25
Svetlicic, M., (2006)
26
Svetlicic, M., (2006)
27
Svetlicic, M., (2006)

9
catalyzer for administrative and legal resolution, pushing the country toward a solidified
political and economic environment. The basic preconditions for the success of the franchise
model exist within Bosnia, especially within Sarajevo region, and can serve as fertile grounds
for franchise development. Furthermore, the franchise business initiative development can be
bettered with an organization responsible for supporting the process of franchise business
establishment by offering guidance to interested local entrepreneurs and external investors.
Finally, the political and economic progress must be based on the platform of common
interests – providing a country wide approach with government, public and private sectors
involved, toward a political stability and economic prosperity. If succeeds, BiH will leave
behind the ideas of extreme nationalism and economic destructions, and steer toward
democratic, economically prosperous, stable, safe and contributing nation of NATO and EU.

10
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