(NON-) ENGAGEMENT OF SLOVENIAN HERBAL ENTERPRISES IN THE BALKAN HERB MARKET: HERBS AS A TEMPLATE FOR LOCALLY ORIENTED BUSINESS MODELS IN RURAL AREAS

Abstract

The international herb market is a significant economic sector and is particularly important for less developed countries where most of the world´s herbs are grown. Countries of the Balkan Peninsula are significant herb suppliers, where cultivation and wild harvesting of the herb also plays an important social and cultural role. Historically, Slovenia has been an importer of herbs, mainly from Balkan countries. Within Slovenia, the herb industry has primarily been based on production and service activities, with operators selling most of their products on the local market. In our analysis, we examined (10) herbal enterprises whose business models include six important elements (product diversity, sales channels, the potential for expansion of the range of products, promotion, networking as well as the availability of labour and succession planning). These elements are strongly influenced by the characteristics of the operator or business owner, specifically, their age, formal education levels, age of the business (extent of business experience), and the reasons for starting a business. For businesses to be successful, linking of elements within the business model as well as connecting with the wider (business) environment are critical factors.