Organization of small and medium companies in the Lower Vrbas River Forest Management Area

Abstract

the research displayed in this work encompasses the small and medium companies in the Lower Vrbas River Forest Management Area which are in the business of logging, preparation, export and removal of timber. Business and possibilities of companies to develop and grow in the forthcoming period will depend on their organization, financial output, curent market position, personnel and technological development. Twelve small and medium enterprises were observed, which distinguish themselves with a low participation of personnel with a university degree that would react to the challenges of modern business. The results of the research indicate that the production volume does not depend on the number of employees with a university degree. Besides that, means of work are obsolete, the business is limited to a narrow geographic area with poor possibilities to secure new markets. When discussing the observed companies, we see that a cluster as an organization model is not represented in the Lower Vrbas River Forest Management Area. The research shows that there is a readiness to join into clusters and that it does not depend on the size of a company.