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Lacking Capital, Small Business Finds it Tough Going in Sarajevo
The shoe factory became the front line in the Bosnian war and was destroyed. The cafes withered and died, one by one, from lack of supply, suspended leases, and an impoverished clientele. Between stints on the front line with the Bosnian Armija, Dujmovic was forced to turn his business talents to Sarajevo's wartime economy to survive. "My biggest problem now, besides capital, is lethargy. The war took something away from all of us. We spent these years trapped in here like a prison, waiting for something to happen. Always waiting. We had so little control over our destiny that now it can be hard to get up and go after things."
Dujmovic, however, is not a man to be kept out of the action for too long though. When Team Berserkistan first met him in February, he had one small club up and running and was in partnership in another.
Featuring live music almost every night, the second club quickly became a popular night spot for Sarajevans and ex-patriots alike. Unfortunately, a decorum dispute with the ranking partner forced Oliver out and the "Pub," as it was known, is now just another smoky bar with bad music and overpriced beer. "These things happen," Dujmovic said from behind his bar in his first club, a small basement establishment. "But now we're in danger of losing this one too. The owners of this building want to do something with this space and are talking about moving us out. The legality of leases and things like that can change like the wind here." Dujmovic has had to take a day job translating and fixing for an aid agency to make sure ends meet. "My biggest problem is capital. The banks here aren't to be trusted yet and the only loans you can get are ridiculous. They want you to pay it off in a month or two and the interest rates are around 25%. Any foreign investment plan needs to include bank reform. We still don't trust them. It was the same with the communists," he told us as the musicians set up the equipment for an impromptu Blues Night open mike event. "This is going to be a good night." He said, casting his eyes over the scene. "We're going to get the music regular again and have this a couple nights a week."
When asked what would benefit small operators such as himself most, Dujmovic said, "After the elections there's supposed to be a lot of money coming here for re-building. I hope some of that goes to low-cost capital for businessmen. That would be the best way to put people back to work and give people like me a chance to invest. Everyone wins that way. I invest. I hire people. We both make money and I invest again. That's how it's supposed to work." |
Sarajevo, July 7 (Team Berserkistan) -- At 35, Oliver Dujmovic has been through a small businessman's nightmare. A young entrepreneur before the war, he saw his business literally go up in smoke. He had a small shoe factory, several cafes and was well on his way to financial security and prosperity. Then the war came.
The artists who helped set up the night included an American pediatrician working with an aid organization and several local players. "My other big problem is my clientele. Everyone here are great people but unfortunately no one has much money. A large part of our income is from foreigners. They're the ones who can afford to buy drinks."
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Bosnian/Balkan Reconstruction U.S. Department of Commerce
Bosnian Reconstruction at a Glance World Bank
Bosnian Reconstruction Guide Republic of Bosnia and Herzegovina
Reconstruction of Bosnia and Herzegovina Triennale di Milano XIX Esposizione Internazionale
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