Her own boss: empowering women entrepreneurs

Women entrepreneurs in Bosnia and Herzegovina face a dual challenge. Just 37% of them are active in the workforce alongside 58% of men, far below the EU average of 67% for women and 78% for men, according to International Labour Organization data.

What’s more, Bosnia and Herzegovina has one of the lowest rates of access to finance for MSMEs in the Western Balkans* and micro-entrepreneurs can struggle to access finance from the country’s banking sector. Around 9% of businesses owned by women do not hold a bank account (compared to 1% for male-owned businesses) and only 25% of women-owned businesses take out a bank loan, compared to 41% of those run by men.**

Partnering for women’s success

Since 2018 the CEB has been partnering with Mi-Bospo, a not-for-profit microfinance organisation in Bosnia and Herzegovina that supports entrepreneurship, particularly among women and young people. The Bank approved its first loan of €2 million to Mi-Bospo in 2018 and recently a second loan of €4 million for the 2021-2024 period.

Both loans are empowering small businesses, many led by women, to get started or to grow. In addition, by supporting Bosnian women to fulfil their rightful economic role and to develop successful businesses, the CEB and Mi-Bospo are promoting job creation and economic prosperity across Bosnia and Herzegovina. 

“Financing women-led micro-enterprises is the main goal of our cooperation with Mi-Bospo,” says Karin Lepp, Country Manager for Bosnia and Herzegovina.

“I’m content that together we can contribute to fostering inclusiveness, supporting creation of viable jobs and tackling gender inequality.”

“I do the work I love"

Nermana Alić is a Mi-Bospo client. The support she’s received from the microfinance organisation has enabled her to create and develop a successful tailoring business in Ilidža, Sarajevo. She explains how, with the right financial backing, she has overcome many challenges and achieved success.

“I have made my dream come true,” Nermana says. “I do the work I want and love, and I achieve a lot. I recommend that everyone tries to achieve their goals as an entrepreneur. They won’t regret it!”

Determination and motivation

Another Mi-Bospo client whose business is flourishing is Zada Avdičević. Zada owns a floral and event planning business, organising weddings, birthdays and other special occasions. Four years ago, Zada left Croatia and returned home to Tuzla in Bosnia and Herzegovina, determined to start her own entrepreneurial story.

Initial funding from Mi-Bospo gave her the finances she needed to get started. Today she receives a lot of orders online. Her biggest satisfaction is the great feedback she receives from her customers who post photos and comments on her social media page.

Zada says, “When I get the praise and see that customers are satisfied, that motivates me even more. I love my job, and I like to work.”

Supporting small businesses

Mi-Bospo is in itself a success story. It started as a pilot microcredit programme for female entrepreneurs run by a non-governmental organisation. Over the course of nearly three decades it has grown in size and importance. Today its mission is to support women’s economic development and access to finance. It has nearly 200 staff and serves some 25,000 clients, the majority of whom are women.

“Our founding idea to support women entrepreneurs lives on and continues to develop,” says Safet Husić, Mi-Bospo CEO. “We were the first microcredit organisation in the country to recognise women’s potential and to help women-led businesses to succeed with excellent credit support.

“Women do a lot to enable communities and society to prosper and advance. We are always here to be the wind beneath the wings of their ideas. Mi-Bospo is inspired by our clients’ successes.”  

*2019 OECD report on policies in the Western Balkans and Turkey

** The World Bank. Access to Finance for MSMEs in Bosnia and Herzegovina with a Focus on Gender. March 2018