METHODS, PHASES AND MODES OF BRINGING DECISIONS ABOUT FINANCING ENTEPRISES FROM BUDGETS FUNDS

Abstract

The subject of the research is the development of local self-government and its role in the development of small and medium enterprises in Bosnia and Herzegovina. Naturally, for new countries such as Bosnia and Herzegovina, this represents many difficulties that must be faced in the economic development and placement of new markets, while certain international institutions are dominating with capital and have influence on development of new production co-operation.

Small and medium enterprises in Bosnia and Herzegovina are not immune to external effects that come with globalization, and this is indicated as the necessity of defining their development strategy.

It is indicative that individual European and world economic organizations that have influence on the development of companies in transition countries such as Bosnia and Herzegovina. There is IMF and the World Bank. They have completely different approaches to the basic concept of development, so the IMF has ruled for everyone in a transition where all countries from different parts of Europe and the world have to dress.

It should be mentioned that for the revitalization of enterprises in crisis, they create ambience in the state system and then manage the direction of development, including the demands coming from the market, indicating that the market is the main regulator for relations of supply and demand, which must be taken into account the lowest cost of raw material for production and placement.

Due to the stated and realistic assumptions about rational realization at deciding on budget financing for development and investment in companies, clear plans for decision-making must be made.