Support of the European Union to the building of institutional capacities for regional and local development of small and medium enterprises (EURELSMED) is a project financed by the EU with 2.4 million Euros and implemented by WYG International Ltd, international organization from United Kingdom, delegation of EU to BiH announced.

"This project will offer consultant support and training to regional and local development organizations throughout BiH in order to help them in development and managing of infrastructure for support to business, in development of consistent and unique services for small enterprises thus increasing the capacities of municipalities for implementation of development projects", says David Miller, EURELSMED team leader.

The goal of the project is to start the initiatives for regional and local development of small and medium enterprises (SME) that will contribute to previously implemented activities related to stimulation of economic growth and creation of new jobs.

„Whilst SMEs are recognized in Europe as the foundation of economic development there is no approved ad adopted strategy in BIH for sector of small and medium enterprises. There is no SME agency on the state level as well as strategy of innovation and competitiveness. Likewise there is no law on SME as well as law on regional development“, explains Miller.

Miller also emphasised that the GDP in BiH is 30% of the EU average compared to the highest of Luxembourg 268% and Albania 27%. The main challenge for BiH remains to be the competitiveness since BiH is on the 102nd place out of 139 countries measured according to global competitiveness index.

Users and partner organizations are regional development agencies, organizations and agencies for local economic development, government departments, municipalities and SMEs from entire BiH.

The project started in September of 2009 and will continue until the end of 2012, EU delegation to BiH announced.