Entrepreneurship
The World Bank and the International Finance Corporation ranks Croatia 80th out of 185 economies in starting a business. Out of 24 countries in Eastern Europe and Central Asia this ranking puts Croatia at 18th. Croatia was hit by a recession in 2008 and has still not recovered. Official unemployment is 17.9%. GDP is showing no growth after falling in both 2009 and 2010. These economic conditions make entrepreneurship difficult. Croatia is also in the process of privatizing many of its state owned companies. Even though privatization started in the 1990’s, the Croatian government still controls a large part of the economy. [RF 13] [RF 5]
Croatia is working on improving entrepreneurship through organizations such as HAMAG. HAMAG runs vocational training programs with the goal of improving the knowledge and skills of the entrepreneurial infrastructure. Another way Croatia encourages entrepreneurship is through state grants given to entrepreneurs and institutions with a role in the development of entrepreneurship. Croatia is also working to improve entrepreneurship by simplifying administrative procedures such as allowing users to file VAT returns electronically. [RF 12] [RF 36]
Croatia is working on improving entrepreneurship through organizations such as HAMAG. HAMAG runs vocational training programs with the goal of improving the knowledge and skills of the entrepreneurial infrastructure. Another way Croatia encourages entrepreneurship is through state grants given to entrepreneurs and institutions with a role in the development of entrepreneurship. Croatia is also working to improve entrepreneurship by simplifying administrative procedures such as allowing users to file VAT returns electronically. [RF 12] [RF 36]
Views on Entrepreneurship
According to a survey by the Gallup Organization, on entrepreneurs in the EU and other countries, less than a third of respondents in Croatia have a “rather favorable opinion about entrepreneurs.” In comparison 73% in the United States have a “rather favorable opinion about entrepreneurs”. More than 75% in Croatia agreed that complex administrative procedures make start-ups difficult. [RF 11]
Croatia is likely to have more negative views on entrepreneurship than the United States because Croatia scores very highly on uncertainty avoidance and very low on individualism according to the Geert Hofstede cultural dimensions theory. [RF 10]
Croatia is likely to have more negative views on entrepreneurship than the United States because Croatia scores very highly on uncertainty avoidance and very low on individualism according to the Geert Hofstede cultural dimensions theory. [RF 10]