The Importance of Soft Skills for Small and Medium Sized Enterprises – Evidence from Bosnia and Herzegovina

Abstract

This article investigates the importance of soft skills for starting and successfully running small and medium sized enterprises (SMEs) in Bosnia and Herzegovina (BiH). Using data collected from a survey of 71 upper-level managers from enterprises operating in BiH, complemented by qualitative insights from a focus group on the same subject, the study examines the perception of importance of the skills such as leadership, communication, emotional intelligence, problem-solving, and teamwork. Statistical analyses, including descriptive analysis, Spearman correlation coefficients, Chi-square tests, and Fisher’s Exact tests, reveal that most soft skills are highly valued by SMEs, with slight differences in perceived importance. Communication skills emerged as the most important, reflecting their central role in fostering productive business interactions. The conducted analyses also indicate that the desirable set of soft skills does not change with the company size, except for the leadership skill. Leadership shows a moderate positive correlation with company size, indicating its increasing importance in larger organizations. Qualitative findings confirm the importance of soft skills for starting and managing businesses, with emphasis on communication and problem-solving skills.