engleski

Influence of transformation trends on entrepreneurial potential in East Croatia

Croatia is a small conutry in SE Europe characterized by distinct local and regional differences. At the beginning of the 1990's, Croatia faced a deep economic crisis caused by both war in the struggle for independence and a poor market economy. Croatia inhered from the former Yugoslavia, a reluctant insular economy, with very little regional development and depopulation. East Croatia, the largest agricultural region, lags well behind in economic development. Rural areas are characterized by large number of small-scale farms and high unemployment. GDP per capita has fallen by more than 40% compared to 1989. Due to large enterprises failing and the loss of numerous jobs, agriculture employment has increased to almost 24% of the total workforce with the number of part-time farms halving in the period from 1991-2003. An average farm is only 2.8 ha of arable land. Only 2% of farmers are educated in terms of agriculture and the TEA-index of entrepreneurial activity is only 2.1. Due to the need to design regional and local programs for the future development of the region, this paper analyses those trends that are expected to have the greatest influence on transforming the farm economy. Furtherome, constrains and the potention for entrepreneurship in rural region are investigated.

agricultural region ; rural development ; agriculture structure ; TEA-index ; educational level ; horticultural production

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