921 13 th International Research/Expert Conference ”Trends in the Development of Machinery and Associated Technology” TMT 2009, Hammamet, Tunisia, 16-21 October 2009 HALAL QUALITY AS A FACTOR FOR DEVELOPMENT OF ENTREPRENEURSHIP INFRASTRUCTURE IN BOSNIA AND HERZEGOVINA Bahrija Umihanić, PhD, professor The Faculty of Economics, Tuzla University Bosnia and Herzegovina 1. INTRODUCTION According to the results of all the relevant research, Bosnia and Herzegovina (BiH) fails to keep pace with other countries in the region when it comes to the development of entrepreneurship infrastructure. That puts it among the most underdeveloped European countries in that segment. The nonexistence of a strategic approach to the creation of business centers, business incubators, business zones, technological and scientific parks additionally worsens the present condition, which can lead to further slowing down the economic growth. In such a situation any individual initiative regarding the development of elements of entrepreneurship infrastructure is given a special meaning. Precisely one such initiative, related to the establishment of a specialized manufacture and service business zone – the Halal Park in Gračanica is described in this paper. The paper aims at pointing out the importance of individual entrepreneurship initiatives of strong potential which significantly affect the level of entrepreneurship activity development. That results in numerous individual effects which are reflected the best in the increased economic and social growth of Bosnia and Herzegovina. A specific quality of the development of this business zone lies in the fact that it was created on the concept of Halal quality, which makes it the first such business zone in Europe. 2. BUSINESS ZONES IN BOSNIA AND HERZEGOVINA – UNDERDEVELOPED INSTRUMENT OF ENTREPRENEURSHIP STRUCTURE All over the world, business zones are seen as a powerful instrument for entrepreneurship development. Actually, they are only one of many important links in the chain of entrepreneurship infrastructure. They are preceded by the development of entrepreneurship centers and business incubators and they are followed by the development of technological, scientific or scientific- technological parks as the combination of these two. Only a complete system of entrepreneurship infrastructure enables a continuous growth of entrepreneurship which will inevitably result in higher economic growth which could be measured by creating new jobs, opening new businesses, strengthening national economy competitiveness as well as personal competitiveness of entrepreneurs and managers of newly opened and existing companies. Bosnia and Herzegovina fails to keep pace with other countries in the region when it comes to entrepreneurship growth. Some of the indicators of this situation are the longest procedures for business registration, the lowest number of small and medium enterprises per 1000 inhabitants and the most underdeveloped entrepreneurship infrastructure. There are four reasons why Bosnia and Herzegovina fails to keep pace with other countries on the region: (1) the importance of entrepreneurship for the country's economy has been realized at a very late point – historical category. (2) A negative influence was also created by slow privatization and transition. (3) A complex administration structure of the state with four levels of government, vaguely defined authorities and constant political crisis caused the inconsistency of economic policies and legal regulations. (4) The inconsistency of institutional regulations for the growth of entrepreneurship.