Measuring Success in Small Family Businesses - A Socioemotional Wealth Perspective

The goal of this paper is to reveal typical non-financial success measures in small family business in Croatia. Socioemotional wealth model is used as a basis for questionnaire construction. Questionnaire items represent family typical success measures and are adaptable to different business activities. Since family business is heterogeneous it was necessary to give a definition of chosen sample – small family hotels. Given definition of small family business was used as a key to separate the family and non-family businesses in this survey. Chosen, socioemotional based, success measures were tested on a sample of small family hotels by using logistic regression. Based on the statistical results, community acknowledgments and continuation of family business are the most important non-financial success measures for Croatian example. This work is licensed under a&nbsp;Creative Commons Attribution-NonCommercial 4.0 International License.</p

OBILJEŽJA MALIH OBITELJSKIH PODUZEĆA U TURIZMU S ASPEKTA VLASNIKA

Tourism and family entrepreneurship make a significant contribution to the Croatian economy, therefore it is important to define characteristics and business operations of family business in tourism. This paper examines characteristics of small family businesses in tourism from the perspective of owners of small family hotels in Croatia. In this qualitative study, interview was employed as a primary research instrument and the scientific method used is based on gestalt principles. GABEK©, a specific method of qualitative research and text analysis was used. The paper portrays the aspects of chosen business characteristics of small families in tourism - motivation of owners when setting up a business, success of small family business, financing, business issues, business facilitation and innovativeness. For each business aspect gestalten tree was formed with owner`s aggregated statements and finally the gestalten tree containing all chosen business aspects has been formed. Motives are, as presumed, family oriented and tending to preserve the family vision in the future. Qualitative, non-financial success measures are more important than financial measures. Business is usually financed from own funds and by combining bank loans, while business issues imply too high tax rates. Innovativeness levels are low which relates to low education levels. Originality of the research can be found in the fact that no similar study was conducted for Croatia nor as GABEK© method was used for qualitative data analysis. The research contributes to the scarce scientific research corpus in the field of family business in tourism. Practical implications presuppose education suggestions for family members in family firms - business facilitation suggestions and detected business issues.Turizam i obiteljsko poduzetništvo čine značajan doprinos hrvatskom gospodarstvu, stoga je važno utvrditi koja su obilježja i načini poslovanja obiteljskih poduzeća u turizmu. U ovom kvalitativnom istraživanju kao primarni mjerni instrument korišten je intervju, a znanstvena metoda za obradu podataka temelji se na gestalt principima. Za potrebe kvalitativne analize i obradu teksta korištena je GABEK© metoda. Cilj istraživanja bio je analizirati odabrana obilježja malih obiteljskih poduzeća u turizmu – motive kod pokretanja obiteljskog posla, uspješnost poslovanja malih obiteljskih poduzeća u turizmu, izvore financiranja, poslovne poteškoće, načine lakšeg poslovanja i inovativnost na uzorku malih obiteljskih hotela u Republici Hrvatskoj. Za svako navedeno obilježje izrađeno je gestalten drvo temeljem agregiranih tvrdnji vlasnika proizašlih iz intervjua, dok se konačno izrađuje jedno zbirno gestalten drvo koje obuhvaća sva obilježja malih obiteljskih hotela. Motivi za pokretanje posla, kao što je i bilo očekivano, usmjereni su na obitelj s ciljem očuvanja obiteljske vizije u budućnosti. Kvalitativne, nefinancijske mjere uspješnosti poslovanja važnije su od financijskih. Poslovanje se obično financira iz vlastiti izvora ili kombinacijom kredita, dok su najčešći problemi poslovanja previsoki porezi. Razine inovativnosti su niske što se povezuje s nižim razinama obrazovanja. Izvornost istraživanja očituje se u činjenici da niti jedno slično istraživanje nije provedeno u Republici Hrvatskoj kao niti upotreba metode GABEK©. Rezultati istraživanja čine doprinos još uvijek relativno neistraženom području obiteljskog poslovanja u turizmu. Praktične implikacije istraživanja očituju se u utvrđivanju potreba za edukacijom vlasnika i članova obitelji, utvrđenim i predloženim načinima olakšanja poslovanja i utvrđenim najčešćim poslovnim problemima

Entrepreneurial orientation and socioemotional dimensions in small family hotels: do they impact business performance?

The family business is a broad concept in which various fields, elements and corresponding influences overlap. Family-specific business motives, behaviours, relationships, emotions and other specificities constitute the heterogeneity of family business. Very strong social and emotional implications in family business indirectly affect family life and even the quality of life. The purpose of this study is to sum up and expand on the understanding of the heterogeneity of small family businesses. It also aims to identify and measure the specific entrepreneurial attributes, knowledge and socioemotional wealth (S.E.W.) of owners. For a sample of small family hotel owners in Croatia, each owner’s specific knowledge, entrepreneurial orientation and motives for establishing a family hotel are analysed, considering the important role of tourism for Croatia. The empirical analysis in this article shows the effects of these distinct characteristics of owners on family-specific performance, where non-financial performance is more relevant. The study also offers a recommendation that local and regional governments organise specific education and networking events, given that the owners in this study who had participated in business- related education performed better. Therefore, low levels of innovation in family business could be improved with education

The impact of owner's entreprenurial orientation and knowledge on the performance of small family oriented businesses in tourism

Cilj znanstvenog istraživanja u ovom doktorskom radu je sumirati i proširiti spoznaje o obilježjima malih obiteljskih poduzeća u turizmu te utvrditi utjecaj poduzetničkih osobina i znanja vlasnika na uspješnost poslovanja. Uz analizu poduzeća istovremeno se analiziraju i poduzetničke osobine vlasnika malih obiteljskih poduzeća turizmu te specifični obiteljski resursi. Teorijski okvir korišten za razvoj istraživanja i empirijskog modela oslanja se na razvojne modele obiteljskog poduzetništva dok su od teorija primijenjene poduzetništvo resursne teorije, teorija socijalnog identiteta i teorija ljudskog kapitala. U skladu s navedenim teorijama razvijen je empirijski model koji predlaže kombinaciju pokazatelja uspješnosti poslovanja, osobina vlasnika i obiteljske specifičnosti te čini doprinos suvremenim pristupima vrednovanja u obiteljskom poduzetništvu. Pomoću statističkih metoda multiple i logističke regresije utvrđen je utjecaj poduzetničkih osobina i znanja vlasnika na uspješnost poslovanja malih obiteljskih poduzeća u turizmu mjerenu financijskim i nefinancijskim pokazateljima. Uzorak za potrebe empirijskog istraživanja i dokazivanje hipoteza sačinjavaju mali obiteljski hoteli koji se nalaze u bazi Nacionalne udruge obiteljskih i malih hotela. Potvrđeno je da specifično poduzetničko znanje stečeno edukacijama značajno utječe na uspješnost poslovanja. Rezultati istraživanja upućuju da od poduzetničkih osobina vlasnika, sklonost riziku i proaktivnost značajno utječu na uspješnost poslovanja, dok inovativnost ne utječe na uspješnost poslovanja što upućuje na niske razine inovativnosti poduzeća u uzorku. Motivi koji najviše utječu na nastavak obiteljskog posla su osiguravanje radnog mjesta za članove obitelji i zadržavanje posla unutar obitelji. Kao nadopuna empirijskom modelu metodom intervjua ispitano je dvadeset vlasnika malih obiteljskih hotela u Republici Hrvatskoj kako bi se dobio dublji uvid u obilježja malih obiteljskih poduzeća u turizmu.The purpose of scientific research in this doctoral thesis is to summarize and expand the knowledge about the characteristics of small family businesses in tourism and to determine the impact of owner`s entrepreneurial traits and knowledge on business performance. Along with the company analysis, the entrepreneurial traits of small family business owners and specific family resources are analyzed at the same time. The theoretical framework used for the development of the research and empirical model relies on the development models of family entrepreneurship while the applied theories are the entrepreneurship of resource theory, the social identity theory and the human-capital theory. In accordance with the aforementioned theories, an empirical model that proposes a combination of business performance indicators, owner`s entrepreneurial traits and family specificities has been developed, which contributes to contemporary family business valuation methods. Furthermore, using statistical multiple and logistic regression methods, the influence of owner`s entrepreneurial traits and knowledge on the performance of small family businesses in tourism measured by financial and non-financial indicators was determined. For the purposes of empirical research and hypothesis confirmation a sample consisting of small family hotels, members of the National Association of Family and Small Hotels was selected. It was confirmed that specific entrepreneurial knowledge acquired through education significantly influences business performance. Owner`s entrepreneurial traits, risk and proactivity preferences have a significant impact on business performance, while innovation does not affect business performance, indicating low levels of business innovation in the sample. Motives that have the greatest influence on the continuation of family business are securing a job for family members and keeping the family within the business. To complement the empirical model, twenty small family hotel owners in the Republic of Croatia were interviewed to gain a deeper insight into the characteristics of small family businesses in tourism

The impact of owner's entreprenurial orientation and knowledge on the performance of small family oriented businesses in tourism

Cilj znanstvenog istraživanja u ovom doktorskom radu je sumirati i proširiti spoznaje o obilježjima malih obiteljskih poduzeća u turizmu te utvrditi utjecaj poduzetničkih osobina i znanja vlasnika na uspješnost poslovanja. Uz analizu poduzeća istovremeno se analiziraju i poduzetničke osobine vlasnika malih obiteljskih poduzeća turizmu te specifični obiteljski resursi. Teorijski okvir korišten za razvoj istraživanja i empirijskog modela oslanja se na razvojne modele obiteljskog poduzetništva dok su od teorija primijenjene poduzetništvo resursne teorije, teorija socijalnog identiteta i teorija ljudskog kapitala. U skladu s navedenim teorijama razvijen je empirijski model koji predlaže kombinaciju pokazatelja uspješnosti poslovanja, osobina vlasnika i obiteljske specifičnosti te čini doprinos suvremenim pristupima vrednovanja u obiteljskom poduzetništvu. Pomoću statističkih metoda multiple i logističke regresije utvrđen je utjecaj poduzetničkih osobina i znanja vlasnika na uspješnost poslovanja malih obiteljskih poduzeća u turizmu mjerenu financijskim i nefinancijskim pokazateljima. Uzorak za potrebe empirijskog istraživanja i dokazivanje hipoteza sačinjavaju mali obiteljski hoteli koji se nalaze u bazi Nacionalne udruge obiteljskih i malih hotela. Potvrđeno je da specifično poduzetničko znanje stečeno edukacijama značajno utječe na uspješnost poslovanja. Rezultati istraživanja upućuju da od poduzetničkih osobina vlasnika, sklonost riziku i proaktivnost značajno utječu na uspješnost poslovanja, dok inovativnost ne utječe na uspješnost poslovanja što upućuje na niske razine inovativnosti poduzeća u uzorku. Motivi koji najviše utječu na nastavak obiteljskog posla su osiguravanje radnog mjesta za članove obitelji i zadržavanje posla unutar obitelji. Kao nadopuna empirijskom modelu metodom intervjua ispitano je dvadeset vlasnika malih obiteljskih hotela u Republici Hrvatskoj kako bi se dobio dublji uvid u obilježja malih obiteljskih poduzeća u turizmu.The purpose of scientific research in this doctoral thesis is to summarize and expand the knowledge about the characteristics of small family businesses in tourism and to determine the impact of owner`s entrepreneurial traits and knowledge on business performance. Along with the company analysis, the entrepreneurial traits of small family business owners and specific family resources are analyzed at the same time. The theoretical framework used for the development of the research and empirical model relies on the development models of family entrepreneurship while the applied theories are the entrepreneurship of resource theory, the social identity theory and the human-capital theory. In accordance with the aforementioned theories, an empirical model that proposes a combination of business performance indicators, owner`s entrepreneurial traits and family specificities has been developed, which contributes to contemporary family business valuation methods. Furthermore, using statistical multiple and logistic regression methods, the influence of owner`s entrepreneurial traits and knowledge on the performance of small family businesses in tourism measured by financial and non-financial indicators was determined. For the purposes of empirical research and hypothesis confirmation a sample consisting of small family hotels, members of the National Association of Family and Small Hotels was selected. It was confirmed that specific entrepreneurial knowledge acquired through education significantly influences business performance. Owner`s entrepreneurial traits, risk and proactivity preferences have a significant impact on business performance, while innovation does not affect business performance, indicating low levels of business innovation in the sample. Motives that have the greatest influence on the continuation of family business are securing a job for family members and keeping the family within the business. To complement the empirical model, twenty small family hotel owners in the Republic of Croatia were interviewed to gain a deeper insight into the characteristics of small family businesses in tourism

YOUTHY ENTREPRENEURSHIP – OPPORTUNITIES AND THREATS

Osnovni je cilj ovoga rada prikazati status mladih poduzetnika u Hrvatskoj te istražiti prilike i mogućnosti ulaska i ostanka u poduzetništvu. Specifični je cilj rada utvrditi s kojim su mogućnostima i prijetnjama mladi suočeni prilikom osnivanja vlastitog pothvata. U radu su korištene kvalitativne istraživačke metode – kvalitativno sekundarno istraživanje temeljem dostupne relevantne literature i kvalitativno primarno istraživanje korištenjem ankete i intervjua. Osim rezultata istraživanja, aplikativni doprinos rada ogleda se i u pregledu programa državnih potpora koje se nude mladim poduzetnicima u Hrvatskoj. Temeljem istraživanja u ovome radu utvrđeno je da postoje mnoge mogućnosti za ulazak mladih u poduzetništvo, ali je potrebno i kontinuirano osnaživanje i motivacija za preuzimanje inicijative. Kao jedan od načina poticanja mladih za ulazak u poduzetništvo autori vide i u specifičnoj edukaciji koja će se usmjeriti na povezivanje prakse i motivacija za poduzetništvo već u sklopu primarnog obrazovanja. Nadalje, ključ uspjeha mladih u poduzetništvu su ustrajnost te dobra priprema i spremnost na preuzimanje rizika. Upravo zbog navedenih razloga nužno je poticati mlade jednostavnijim uključivanjem u poduzetništvo.The main purpose of this paper is to present opportunities and possibilities of young entrepreneurs entering entrepreneurship in Croatia. The specific purpose of this paper is to determine what possibilities and threats young entrepreneurs face while establishing a new venture. This paper includes several researches types - primary qualitative research based on literature review and secondary qualitative research based on survey and interview. Besides empirical results, practical contribution of this paper can be seen in given overview of public incentives offered to young entrepreneurs in Croatia. According to the research results there are many possibilities for young people to enter entrepreneurship but on the other hand constant strengthening and motivation for taking initiatives is needed. As one of the possible means of motivation to enter entrepreneurship authors see specific education highlighting practice and motivation of pupils already in primary education. Numerous positive examples of young entrepreneurs presented in this paper corroborate the fact that the young can be successful in Croatia if they possess the will and persistence. On the basis of all previously mentioned it is necessary to motivate the young to enter entrepreneurship by simplifying the process

SPECIFIC FEATURES OF SME FINANCING IN CROATIA COMPARED TO THE EUROPEAN COUNTRIES

U ovome radu prikazani su načini klasifikacije SME sektora u Hrvatskoj u odnosu na zemlje Europske unije. Cilj istraživanja bio je utvrditi klasifikaciju SME sektora u Hrvatskoj u odnosu na zemlje EU-a. Kvalitativnim znanstvenim metodama indukcije i dedukcije utvrđeno je da se udio SME sektora u Hrvatskoj ne razlikuje od zemalja Europske unije. Tipični kriteriji klasifikacije kod većine zemalja su broj zaposlenih, veličina prihoda i aktive. Pregledom literature, a osobito istraživanja koja su provela državna tijela zadužena za SME sektor, utvrđeni su udjeli SME sektora u ukupnom gospodarstvu Hrvatske te je potom izvršena usporedba sa zemljama Europske unije. I u ovome dijelu istraživanja vidljivo je da se Hrvatska uklapa u europski prosjek. Na razini Europske unije udio SME sektora veći je od 90 %, a Hrvatska se s gotovo 98 % uklapa u navedeni prosjek. U radu se dolazi do specifičnog cilja, a to je utvrđivanje tipičnih izvora financiranja SME sektora. Temeljem cilja istraživanja postavljena je i hipoteza da se tipični izvori financiranja SME sektora u Hrvatskoj ne razlikuju od Europske unije. Hipoteza je dokazana metodama indukcije i dedukcije sekundardnih podataka. U posljednjem dijelu rada navode se rezultati istraživanja i specifični načini financiranja. Uz tipične oblike financiranja kao što su bankarski krediti i ostali zajmovi navode se i financijske potpore koje su odobrili fondovi Europske unije.This paper analyzes the classification of the SME sector in Croatia compared to other EU countries. The main goal of this research was to define the SME classification in Croatia compared to other EU countries. The usual classification criteria are the number of employees, annual revenue and assets. On the basis of criteria analysis, similarities and differences in defining SMEs have been determined. Based on literature review, mainly research analyses conducted by public authorities in specific countries in charge of the SME sector, the SME share in the whole Croatian economy has been determined. The EU share of SME is more than 90%, and Croatia with the share of almost 98% definitely follows the trend. According to the main goal of this paper, the hypothesis has been put forward stating that typical financing types of the SME sector in Croatia do not significantly differ from the EU’s ones. The hypothesis has been confirmed with scientific descriptive methods of induction and deduction on the basis of secondary data. The last part of the paper deals with the research result and outlines specific financing types. Along with typical financing types such as bank loans and other types of loans, some special financial aid programs financed by the EU have also been mentioned

SOCIO DEMOGRAPHIC DETERMINANTS OF FINANCIAL LITERACY OF THE CITIZENS OF THE REPUBLIC OF CROATIA

Svrha rada je empirijska analiza financijske pismenosti pojedinaca istraživanjem odnosa između financijske pismenosti i socio-demografskih obilježja građana Republike Hrvatske. Rezultati istraživanja mogu poslužiti kao osnova za razvoj i poboljšanje strategija osobnih financija i nacionalnih mjera financijske politike s posebnim naglaskom na obrazovanje. Empirijski model rada testiran je pomoću binarne logističke regresije. Utvrđena su četiri temeljena istraživačka pitanja, a u modelu čine zavisne varijable, dok šest socio-ekonomskih obilježja ispitanika predstavljaju nezavisne varijable. Rezultati istraživanja dovode do zaključka da starost, razina obrazovanja i razine dohotka statistički signifikantno utječu na financijsku pismenost.Scientific purpose of this paper is empirical assessment of financial literacy (FL) of individuals by examining relationship between FL and sociodemographic characteristics of the Croatian citizens. Research results could serve as a basis for development and improvement of personal finance strategies and national financial policy measures with special attention put on education. Empirical model has been tested by using binary logistic regression; four fundamental survey questions have been defined, set as dependent variables while six socio-demographic characteristics of respondents have been set as independent variables. Research results show that age, level of education and income levels statistically significantly influence FL