engleski

The cleavage between rising need of immigrant (social) entrepreneurship and rising barriers facing it: Case of Croatia

Croatia is now facing a large emigration wave and a growing need of work force and entrepreneurial activity. Yet, only 11% of Croatian citizens see immigration more of an opportunity than a problem (EC, 2018). Studies conducted globally show the immigrants to be more entrepreneurial, less risk-averse and more innovative than the local citizens. Consequently, they contribute to the competitiveness of their host country and the well-being of its entire population. The preliminary findings based on limited statistical data and semi-structured interviews (with foreign entrepreneurs and institutional representatives) indicate growing potential of immigrant entrepreneurship in Croatia, but persistent formal and informal obstacles in their economic and social inclusion. In addition to the barriers that are equally harmful to domestic and foreign entrepreneurs (like administrative burden, unpredictable tax and employment regulations), there is an extensive list of obstacles specific to foreign entrepreneurs. These include a lack of unambiguous instructions in English accompanied with inadequate enforcement of the existing rules for doing business for foreign nationals. Furthermore, the non-EU nationals continuously face the work permit problems and unfavourable requirements such as mandatory financial capital that is up to 200x higher than for the native/EU entrepreneurs. Yet, the informal barriers are even more discriminatory for the entrepreneurs originating (mainly) from the less developed countries. The right-wing rhetoric of the incumbents, public ignorance and limited openness towards other ethnic (and minority) groups discourages their entrepreneurial ventures. Moreover, immigrants from conflict-affected areas are considered a security threat and a (sole) burden to a state budget. Even their social enterprises are often underestimated and left without any institutional support. Besides a coherent overview of the immigrant entrepreneurship in Croatia, this study provides short- and long-term policy recommendations that could have broader resonance for other South East European countries as well.

entrepreneurship ; migration ; immigrant entrepreneurship ; Eastern Europe

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