engleski

CHANGES IN THE SECTOR OF SMALL AND MEDIUM-SIZED ENTERPRISES IN THE REPUBLIC OF CROATIA UNDER THE INFLUENCE OF THE PANDEMIC

The incredible change in the dynamics of the environment and the complexity of the surroundings significantly affect companies business operations worldwide, including companies in the Republic of Croatia. The changes caused by the pandemic are visible in all sectors, especially in small and medium-sized enterprises. Entrepreneurship is the foundation that drives national and global economies. In the Republic of Croatia, the sector of small and medium-sized enterprises accounts for over 50% of the total income at national level, and annually employs over 70% of the total number of employees. Therefore, the development of a good state entrepreneurial climate is unquestionable and needs to be backed up with the effective legislative and institutional framework. The fact is that the contribution of Croatian educational system in developing entrepreneurial competences is rated below the European Union average, which significantly affects the competitiveness of the companies, and thus the economy as a whole. The European Union has recognized the trends that modern entrepreneurship demands, and directs most of its support to the small and medium-sized entrepreneurship segments, therefore Croatia as a member implements and redirects activities of its institutions and supports entrepreneurship whose activities have been expedited due to the pandemic. Based on that, the aim of the paper is to provide an overview of the institutional framework in the Republic of Croatia, which is the key in providing support and development of entrepreneurship in the state. Further, an overview of the environment and changes caused by the pandemic in the sector of small and medium enterprises in 2019 and 2020 has been given. Secondary data sources where used in writing the paper.

entrepreneurship ; SME ; pandemic ; corona crisis ; Croatia

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