LocationsThe Power of Small
June 26, 2025
HOW MSMEs ARE BUILDING A GREENER, MORE RESILIENT FUTURE
In Bosnia and Herzegovina, micro, small, and medium-sized enterprises (MSMEs) account for over 99% of all registered businesses and employ approximately 70% of the workforce in the non‑financial business economy. They are embedded in local communities, responsive to change, and vital to the country’s development.
While they may not always make headlines, MSMEs are quietly driving a powerful transformation - one that is steering BiH toward a more sustainable, energy-efficient, and climate-resilient future.
From production halls and family workshops to fish farms and fabrication plants, these enterprises are taking decisive action. They are not waiting for change to happen - they are making it happen. With limited resources but strong resolve, they are embracing the green transition as an opportunity to modernize operations, reduce emissions, improve competitiveness, and protect the environment.
With support from the United Nations Development Programme (UNDP) in BiH and funding from Sweden, dozens of MSMEs across the country have conducted energy audits, introduced renewable energy systems, and adopted cleaner technologies. These steps may seem small - but taken together, they are shifting the direction of development in BiH.
People are the driving force behind every change: visionary entrepreneurs, dedicated workers, and local champions who believe that business growth and sustainability can thrive together.
The following stories show how investing in the “small” can deliver big results - for businesses, for people, and for the planet.
Colorit, Banja Luka: Energy Efficiency in Every Layer
Colorit, a family-run company based in Banja Luka, produces over 60 types of materials for finishing works in construction - from paints and facades to adhesives and waterproofing compounds. Guided by its motto “Palette of quality,” the company has made energy efficiency a core element of its business model.
Following a comprehensive energy audit supported through UNDP and Sweden, Colorit implemented several recommended measures - starting with the replacement of its boiler system with a higher-capacity, energy-efficient model.
“The new system allows remote control and automatic ignition, which significantly improved working conditions during winter and reduced the risk of damage to materials and equipment,” explained Irena Havreljuk, Quality Control and Development Manager at Colorit.
"Investing in energy-efficient systems is not just a cost - it's an investment in long-term stability and sustainable growth."
The audit also pointed to additional opportunities for savings and environmental improvements, including the introduction of LED lighting, a photovoltaic power plant, and a comprehensive energy management system. Early results are already promising: smarter resource use, lower CO₂ emissions, and increased staff motivation.
“Investing in energy-efficient systems is not just a cost, it’s a long-term investment in business stability and growth,” emphasized Havreljuk.
“We encourage other MSMEs to embrace green changes - not only for the benefit of their businesses, but also for their employees and the communities they operate in.”
The audit also identified further opportunities for savings and environmental impact - LED lighting, a photovoltaic system, and energy management tools.
Laks export-import, Blagaj: Innovation in Aquaculture
Laks export-import, a company specializing in fry and edible fish farming and processing, is no stranger to innovation. Having already implemented two major UNDP- supported projects, the company focused next on energy consumption at its Salakovac fish processing facility.
An energy audit identified a heat pump as a key solution for reducing electricity use - particularly critical in a facility where temperature control directly impacts product quality and energy bills.
“With automatic machines, cold chambers, compressors and steamers, energy costs were high. The heat pump will help stabilize temperatures and reduce consumption year-round,”
said Tanja Handžar, Director.
The installation is pending, but expectations are high: quieter operations, lower carbon emissions, and improved working conditions.
“We are grateful for the investment opportunity and hopeful for continued collaboration. These projects strengthen our capacity and make us more resilient,” concluded Handžar.
With two UNDP-backed projects already completed, the company is scaling up its sustainability efforts - this time targeting energy use at its Salakovac facility.
Ćosićpromex, Tešanj: A Blueprint for Industrial Sustainability
Ćosićpromex, a metal-processing company exporting steel structures to the EU, embodies what the green transition means in practice. Guided by an energy audit, they made a series of strategic investments to reduce emissions, cut costs, and prepare for EU environmental compliance.
“We installed a 220 kW solar power plant that now covers about half of our electricity needs. Alongside this, we implemented a heating and cooling system with a heat pump, two high-efficiency presses, an energy-efficient compressor unit, and LED lighting,” explained Marija Ćosić, Deputy Director.
The results are already visible: lower electricity use, improved process reliability, and higher worker satisfaction. The company plans to expand solar capacity and fully transition to heat pumps in a new production hall.
“These changes were more than technical upgrades. They showed us that it’s possible to work smarter, safer, and more sustainably - while improving quality. Green investments are a win across the board: for the environment, for competitiveness, and for our people,”
added Ćosić.
The company has acquired two 4-meter, 440-ton presses, offering greater efficiency and precision in processing - boosting productivity while reducing errors and material waste.
EUROGUMA, Sarajevo: Planning for a Greener Future
EUROGUMA, a company with over 30 years of experience in industrial materials and custom-made thermal insulation solutions, is thinking ahead. Faced with property-related changes and the need for strategic investment planning, EUROGUMA used an energy audit supported by UNDP to explore how renewable energy could help modernize and green their production processes.
The company noted that the audit was their first step, opening doors for future investments and helping them prepare for funding opportunities that require it as a baseline.
EUROGUMA plans to transition from heating oil to a heat pump system and invest in a solar power plant. Though implementation is pending, the company is already seeing benefits - including eligibility for grants and clearer investment paths.
By including products that save energy and investing in our facility, company aims to significantly reduce emissions and ensure our energy comes from acceptable, renewable sources.
IHM doo Gornji Brodac: Tradition Meets Sustainability
IHM doo, a wood-processing company from Gornji Brodac near Bijeljina, specializes in the production of wooden railway sleepers and poles impregnated with eco-friendly preservatives. Recognizing the need to modernize operations and reduce environmental impact, the company undertook an energy audit to guide its next steps in sustainability.
“We plan to replace outdated thermal insulation and metal doors in our production halls, install thermostatic valves for better temperature regulation, and build two photovoltaic power plants to reduce dependence on fossil fuels. These measures will significantly improve energy efficiency and working conditions,”
explained Toplica Jovanović, a member of the management team at IHM
Anticipated results include reduced heating and electricity costs, lower emissions, and a more comfortable and productive workplace. The company also expects improved employee engagement and long-term savings that can be reinvested into operations and workforce development.
“These are not just energy-saving measures. They represent our broader commitment to responsible business. Sustainability strengthens our company’s future, improves employee morale, and demonstrates that industrial production and environmental protection can go hand in hand” added Jovanović.
Recognizing the need to modernize and reduce environmental impact, the company undertook an energy audit to guide its next steps toward sustainability.
A Collective Shift
What unites these companies is a shared understanding: sustainability is no longer a choice, it’s a necessity. Energy efficiency, innovation, and environmental responsibility have become essential pillars of long-term business success in BiH.
With technical support from UNDP and financial backing from Sweden, these enterprises are not just adapting to change - they are shaping it. Their stories show that true transformation begins with small but deliberate steps:
One audit. One machine. One decision at a time.
With continued support through the UNDP Green Transition Portfolio, these efforts will grow, empowering more businesses, strengthening local economies, and unlocking the potential of communities across the country to lead the way toward a low-carbon, sustainable future.
