engleski

Managing challenges and long-term sustainability of start-up projects - case of Croatia

The sector of small and medium size enterprises (SMEs) is the most dynamic sector in all developed economies and it is the generator of development and economic growth. Many start-ups face great risk in their operation. In order to minimise the risk of operation, it is necessary to define potential problems and challenges that a start up is likely to face before embarking on a venture. Long-term sustainability depends on maintaining a consistent product quality level. The authors provided research that helped identify several elements necessary for long- term sustainability of start-up projects. According to the conducted research, market instability, high taxes, overwhelming bureaucracy, uncertainty, stress and lack of free time, are the main drawbacks of embarking on an entrepreneurial venture, while the ability to independently make decisions and organise work, as well as the feeling of self- accomplishment are the main advantages. Respondents stated that the most hindering factors were the adverse effects of the government‟s tax policy regarding SMEs, poor support from public institutions, inadequate contribution of elementary and secondary education in development of entrepreneurial competences of young people, as well as low transfer level of scientific research results to the business sector. Considering measures which would encourage entrepreneurship and stop the outflow of young people, entrepreneurs suggest lowering of taxes and contributions on wages and salaries – lessening the burden of employers would enable them to raise the pay of their workers ; in addition to that, they suggest higher incentives for young entrepreneurs, less bureaucracy and increased pay of people involved in professional training. Finally, in order to succeed and achieve long- term sustainability, every business venture requires investment in knowledge, expert skills and product development. Innovation and motivation for continuous improvement guarantees success and sustainability of a business. If an enterprise operates on the principles of innovation, it can always and without high costs keep up with market trends and respond to requirements of the complex business environment.

start-up, long-term sustainability, innovation

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