Profiling nascent entrepreneurs in Croatia - neural network approach

A significant body of research has been conducted to identify the most important characteristics of nascent entrepreneurs. The aim of this paper is to create a model for recognizing nascent entrepreneurs in Croatia, using the Global Entrepreneurship Monitor (GEM) data for 2014. In this research, the artificial neural networks were used as a machine learning method which enabled the recognition of nascent entrepreneurs, as well as the selection of most important variables and profiling. The suggested model includes variables that describe examinees’ attitudes, skills and demographic characteristics, while the binary output variable identifies a nascent entrepreneur. In addition to testing the accuracy of the suggested model, the contribution of this paper lies in the profiling of nascent entrepreneurs in Croatia. This model could be a valuable tool for the government and entrepreneurship support institutions in creating policies and programmes based on recognizing the most important features of nascent entrepreneurs in order to improve entrepreneurial ecosystems

ACQUISITIVE GROWTH OF SMALL AND MEDIUM ENTERPRISES : DOCTORAL THESIS

Rast malih i srednjih poduzeća uglavnom je promatran kroz prizmu organskog rasta, unatoč činjenici kako mala i srednja poduzeća mogu ostvariti rast na različite načine, a jedan od mogućih načina je korištenjem akvizicija. Većina provedenih istraživanja i razvijenih teorija povezana je s praćenjem akvizicija velikih poduzeća, dok akvizicije koje provode mala i srednja poduzeća predstavljaju zanemareno područje istraživanja. Ova doktorska disertacija nastoji kroz kvalitativno empirijsko istraživanje pridonijeti dubljem razumijevanju akvizicijskih procesa kroz koje prolaze mala i srednja poduzeća, te dati odgovor na pitanje zašto se vlasnici malih i srednjih poduzeća odlučuju za akviziciju kao metodu rasta. U teorijskom dijelu disertacije dan je pregled prethodnih istraživanja o rastu malih i srednjih poduzeća, te pregled istraživanja o akvizicijama, posebno malih i srednjih poduzeća. Također, u teorijskom dijelu disertacije prikazano je i analizirano vanjsko okruženje kao i specifičnosti okruženja Republike Hrvatske. Empirijski dio disertacije korištenjem kvalitativne istraživačke metodologije, prvenstveno studije slučaja daje prikaz i usporedbu osam slučajeva akvizicija koje su u Hrvatskoj proveli vlasnici malih i srednjih poduzeća. Analiza slučajeva omogućila je identifikaciju moriva poduzetnika za provođenje akvizicije, ostvarenih efekata, te specifičnih izazova s kojima su se susretali. Rezultati empirijskog istraživanja ukazuju kako je kod poduzetnika u odabranom uzorku izrazito naglašena potreba za povjerenjem i prethodnim poznavanjem prodavatelja upravo zbog nerazvijenosti ekosustava, te kako su poduzetnici uglavnom preuzimali poduzeća unutar industrije. Jednako tako istraživanje je otkrilo kako su poduzetnici pokazali visoku razinu samouvjerenosti, samostalno ulazili u proces, bili kreativni u načinu financiranja i provođenja akvizicija, te kroz proces učili. U konačnici istraživanje je ukazalo i kako su poduzetnici u promatranim slučajevima uspjeli ostvariti veće sinergijske efekte u odnosu na očekivane, što je pozitivno utjecalo na reputaciju poduzeća, daljnji organski rast, te otvorenost prema novim akvizicijama.Entrepreneurial growth has traditionally been observed through the lens of organic growth even though SMEs can achieve growth in different ways (e.g. by using acquisition). Acquisitions as a phenomenon have predominantly been studied on samples of large companies, therefore published research and theories have been developed almost exclusively from the studies of large acquisition deals. This doctoral thesis uses a qualitative research design based on in-depth case studies to explore the acquisition process of SMEs in the specific context of the undeveloped market such as the Croatian. Also, this thesis seeks to contribute to a deeper understanding of the acquisition processes that SMEs go through, and entrepreneurs’ motivation to undertake the acquisition. The theoretical part of the thesis gives an overview of previous research on SME growth, as well as an overview of research on the acquisitive growth of SMEs. Further, this part also explores the external environment and analyses specifics of the Croatian entrepreneurial ecosystem in the context of acquisitive growth. The empirical part of the thesis provides a comparison of eight in-depth case studies of acquisitions conducted by entrepreneurs in Croatia. A comparative analysis of the cases was made to identify entrepreneurs' motives for acquisition, challenges they faced during the process and the effects. The results of the empirical research point out due to the undeveloped ecosystem the importance of trust and the prior relationship between buyer and seller. Also due to undeveloped ecosystem, entrepreneurs mostly acquire companies within the industry. Further, entrepreneurs have shown a high level of self-confidence and have entered the process on their own without the advisors support. Entrepreneurs have been creative in the financing of acquisitions. They learned through the process and gained new important experience and acquisition knowledge. Finally, the research also indicated that entrepreneurs were able to achieve greater synergies than expected, which had a positive effect on the company's reputation as well as further organic growth

Challenges of business transfer in small and medium enterprises

Odluka o izlasku iz poduzetničkog pothvata predstavlja sastavni dio poduzetničkog procesa. Izlazak iz poduzetničkog pothvata jedne osobe ostavlja mogućnost drugima za ulazak u poduzetnički pothvat kroz kupovinu (entrepreneurial takeover) ili kroz nasljeđivanje poduzeća (family business succession). Odluka o izlasku iz poduzetničkog pothvata ima utjecaj na velik broj dionika. Prvenstveno utječe na vlasnika poduzeća, zaposlene u poduzeću, te gospodarstvo u cjelini. Prema provedenim istraživanjima unutar Europske Unije kroz proces prijenosa poslovanja svake godine prolazi oko 450.000 poduzeća s oko 2 milijuna zaposlenih. Procjenjuje se kako oko 150.000 poduzeća ne pristupa na adekvatan način prijenosu poslovanja čime se u pitanje dovodi oko 600.000 radnih mjesta. Izlazak iz poduzetničkog pothvata i prijenos poslovanja emocionalan je i stresan događaj tijekom kojeg su vlasnici suočeni s brojnim izazovima. Cilj ovog rada je ukazati na važnost prijenosa poslovanja i izazove s kojima se vlasnici malih i srednjih poduzeća susreću tijekom tog procesa. Na osnovi identificiranih izazova, u radu su dane preporuke za unaprjeđenje nacionalnog business transfer ekosustava u Hrvatskoj.Entrepreneurial exit is an important part of entrepreneurial process. Exit from the entrepreneurial venture of one person leaves the possibility for other to enter the venture trough entrepreneurial takeover or family business succession. Entrepreneur’s decision to exit the venture has an impact on number of stakeholders. It is estimated that each year in the European Union around 450,000 firms with around 2 million employees go through the business transfer process. The issue of business transfer is not adequately approached in approximately 150,000 firms, which jeopardizes around 600,000 jobs (European Commission, 2011). Exiting and transferring the business is emotional and stressful event in entrepreneur’s life during which entrepreneurs face number of challenges. Objective of this paper is to point out the importance of business transfer and challenges faced by business owners during this process. Based on the identified challenges policy recommendations for further improvement of the national business transfer support system in Croatia are provided

ACQUISITIVE GROWTH OF SMALL AND MEDIUM ENTERPRISES : DOCTORAL THESIS

Rast malih i srednjih poduzeća uglavnom je promatran kroz prizmu organskog rasta, unatoč činjenici kako mala i srednja poduzeća mogu ostvariti rast na različite načine, a jedan od mogućih načina je korištenjem akvizicija. Većina provedenih istraživanja i razvijenih teorija povezana je s praćenjem akvizicija velikih poduzeća, dok akvizicije koje provode mala i srednja poduzeća predstavljaju zanemareno područje istraživanja. Ova doktorska disertacija nastoji kroz kvalitativno empirijsko istraživanje pridonijeti dubljem razumijevanju akvizicijskih procesa kroz koje prolaze mala i srednja poduzeća, te dati odgovor na pitanje zašto se vlasnici malih i srednjih poduzeća odlučuju za akviziciju kao metodu rasta. U teorijskom dijelu disertacije dan je pregled prethodnih istraživanja o rastu malih i srednjih poduzeća, te pregled istraživanja o akvizicijama, posebno malih i srednjih poduzeća. Također, u teorijskom dijelu disertacije prikazano je i analizirano vanjsko okruženje kao i specifičnosti okruženja Republike Hrvatske. Empirijski dio disertacije korištenjem kvalitativne istraživačke metodologije, prvenstveno studije slučaja daje prikaz i usporedbu osam slučajeva akvizicija koje su u Hrvatskoj proveli vlasnici malih i srednjih poduzeća. Analiza slučajeva omogućila je identifikaciju moriva poduzetnika za provođenje akvizicije, ostvarenih efekata, te specifičnih izazova s kojima su se susretali. Rezultati empirijskog istraživanja ukazuju kako je kod poduzetnika u odabranom uzorku izrazito naglašena potreba za povjerenjem i prethodnim poznavanjem prodavatelja upravo zbog nerazvijenosti ekosustava, te kako su poduzetnici uglavnom preuzimali poduzeća unutar industrije. Jednako tako istraživanje je otkrilo kako su poduzetnici pokazali visoku razinu samouvjerenosti, samostalno ulazili u proces, bili kreativni u načinu financiranja i provođenja akvizicija, te kroz proces učili. U konačnici istraživanje je ukazalo i kako su poduzetnici u promatranim slučajevima uspjeli ostvariti veće sinergijske efekte u odnosu na očekivane, što je pozitivno utjecalo na reputaciju poduzeća, daljnji organski rast, te otvorenost prema novim akvizicijama.Entrepreneurial growth has traditionally been observed through the lens of organic growth even though SMEs can achieve growth in different ways (e.g. by using acquisition). Acquisitions as a phenomenon have predominantly been studied on samples of large companies, therefore published research and theories have been developed almost exclusively from the studies of large acquisition deals. This doctoral thesis uses a qualitative research design based on in-depth case studies to explore the acquisition process of SMEs in the specific context of the undeveloped market such as the Croatian. Also, this thesis seeks to contribute to a deeper understanding of the acquisition processes that SMEs go through, and entrepreneurs’ motivation to undertake the acquisition. The theoretical part of the thesis gives an overview of previous research on SME growth, as well as an overview of research on the acquisitive growth of SMEs. Further, this part also explores the external environment and analyses specifics of the Croatian entrepreneurial ecosystem in the context of acquisitive growth. The empirical part of the thesis provides a comparison of eight in-depth case studies of acquisitions conducted by entrepreneurs in Croatia. A comparative analysis of the cases was made to identify entrepreneurs' motives for acquisition, challenges they faced during the process and the effects. The results of the empirical research point out due to the undeveloped ecosystem the importance of trust and the prior relationship between buyer and seller. Also due to undeveloped ecosystem, entrepreneurs mostly acquire companies within the industry. Further, entrepreneurs have shown a high level of self-confidence and have entered the process on their own without the advisors support. Entrepreneurs have been creative in the financing of acquisitions. They learned through the process and gained new important experience and acquisition knowledge. Finally, the research also indicated that entrepreneurs were able to achieve greater synergies than expected, which had a positive effect on the company's reputation as well as further organic growth

Challenges of business transfer in small and medium enterprises

Odluka o izlasku iz poduzetničkog pothvata predstavlja sastavni dio poduzetničkog procesa. Izlazak iz poduzetničkog pothvata jedne osobe ostavlja mogućnost drugima za ulazak u poduzetnički pothvat kroz kupovinu (entrepreneurial takeover) ili kroz nasljeđivanje poduzeća (family business succession). Odluka o izlasku iz poduzetničkog pothvata ima utjecaj na velik broj dionika. Prvenstveno utječe na vlasnika poduzeća, zaposlene u poduzeću, te gospodarstvo u cjelini. Prema provedenim istraživanjima unutar Europske Unije kroz proces prijenosa poslovanja svake godine prolazi oko 450.000 poduzeća s oko 2 milijuna zaposlenih. Procjenjuje se kako oko 150.000 poduzeća ne pristupa na adekvatan način prijenosu poslovanja čime se u pitanje dovodi oko 600.000 radnih mjesta. Izlazak iz poduzetničkog pothvata i prijenos poslovanja emocionalan je i stresan događaj tijekom kojeg su vlasnici suočeni s brojnim izazovima. Cilj ovog rada je ukazati na važnost prijenosa poslovanja i izazove s kojima se vlasnici malih i srednjih poduzeća susreću tijekom tog procesa. Na osnovi identificiranih izazova, u radu su dane preporuke za unaprjeđenje nacionalnog business transfer ekosustava u Hrvatskoj.Entrepreneurial exit is an important part of entrepreneurial process. Exit from the entrepreneurial venture of one person leaves the possibility for other to enter the venture trough entrepreneurial takeover or family business succession. Entrepreneur’s decision to exit the venture has an impact on number of stakeholders. It is estimated that each year in the European Union around 450,000 firms with around 2 million employees go through the business transfer process. The issue of business transfer is not adequately approached in approximately 150,000 firms, which jeopardizes around 600,000 jobs (European Commission, 2011). Exiting and transferring the business is emotional and stressful event in entrepreneur’s life during which entrepreneurs face number of challenges. Objective of this paper is to point out the importance of business transfer and challenges faced by business owners during this process. Based on the identified challenges policy recommendations for further improvement of the national business transfer support system in Croatia are provided

Izzivi prenosa lastništva malih in srednjih podjetij: primerjava med Hrvaško in Finsko

Background and Purpose: In the life cycle of a firm, business transfer represents the critical stage of development. Underestimating the complexity and longevity of this process can have negative implications for firms, their owners and wide network of stakeholders. The aim of this paper is to compare the attitude towards business transfer of en­trepreneurs aged 55 and more in Croatia and Finland and provide policy recommendations for improvement of the national business transfer ecosystems. Methodology/Approach: Both surveys targeted entrepreneurs aged 55 and more using the same questionnaire, with some adjustments to Croatian business transfer ecosystem. Finish barometer was conducted through web-based survey among members of Federation of Finnish Enterprises. Survey in Croatia was conducted with combi­nation of CATI and CAWI collection method by a professional data collection agency. Data collected was compared based on a demographic criterion, industry background, experience in business transfer, expected future of the company, support needed and biggest challenges. Results: The research results indicated a growing number of entrepreneurs in Croatia who will be interested in sell­ing their firm once they withdraw from the business and less than expected family business successions. In Finland the most important challenges are related to business valuation and finding a successor or a buyer. Conclusion: For further development of business transfer ecosystem in Croatia it is recommended to focus on awareness raising activities, channels for matching sellers and buyers, promotion of takeover entrepreneurship and consultancy support for micro enterprises. In Finland results indicate the importance of investing continuous efforts in raising the effectiveness of the measures implemented. Keywords: SMEs; business transfer; business transfer ecosystemOzadje in namen: V življenjskem ciklu podjetja prenos poslovanja podjetja predstavlja kritično stopnjo razvoja. Pod­cenjevanje kompleksnosti in dolgotrajnosti tega procesa lahko negativno vpliva na podjetja, njihove lastnike in široko mrežo zainteresiranih partnerjev. Cilj tega prispevka je primerjava odnosa do prenosa lastništva podjetnikov, starih 55 let ali več, na Hrvaškem in na Finskem, in oblikovanje priporočil za izboljšanje nacionalnih ekosistemov za prenos lastništva podjetij med generacijama. Metodologija / pristop: Populacija, ki smo jo raziskovali, so podjetniki, stari 55 let in več. Uporabili smo vprašal­nik, ki je bil naprej uporabljen na Finskem in ga delno prilagodili za hrvaški podjetniški ekosistem.. Raziskava na Hrvaškem je potekala s kombinacijo metode CATI in CAWI s strani profesionalne agencije za zbiranje podatkov. Zbrane podatke so primerjali na podlagi demografskega merila, industrijskega ozadja, izkušenj pri prenosu podjetij, pričakovane prihodnosti podjetja, potrebnih podpore in največjih izzivov. Rezultati: Rezultati kažejo na vedno večje število podjetnikov na Hrvaškem, ki bodo zainteresirani za prodajo pod­jetja, ko se bodo umaknili iz poslovanja, in razmeroma malo tistih, ki pričakujejo, da bodo družinski dediči prevzeli podjetje. Na Finskem so najpomembnejši izzivi povezani z vrednotenjem podjetij in iskanjem primernega naslednika ali kupca. Zaključek: Za nadaljnji razvoj poslovnega transfernega ekosistema na Hrvaškem priporočamo, da se osredotočimo na dejavnosti ozaveščanja načinov, ki bi olajšali prodajalcem najti primerne kupce, spodbujanje podjetništva pri prevzemih in svetovanje mikro podjetjem. Rezultati na Finskem kažejo, da je pomembno vlagati stalna prizadevanja za povečanje učinkovitosti že izvajanih ukrepov. Ključne besede: mala in srednja podjetja; poslovni prenos; ekosistem za poslovni prenos podjeti

The Challenges of SME Business Transfers: The Evidence from Croatia and Finland

Background and Purpose: In the life cycle of a firm, business transfer represents the critical stage of development. Underestimating the complexity and longevity of this process can have negative implications for firms, their owners and wide network of stakeholders. The aim of this paper is to compare the attitude towards business transfer of entrepreneurs aged 55 and more in Croatia and Finland and provide policy recommendations for improvement of the national business transfer ecosystems. Methodology/Approach: Both surveys targeted entrepreneurs aged 55 and more using the same questionnaire, with some adjustments to Croatian business transfer ecosystem. Finish barometer was conducted through webbased survey among members of Federation of Finnish Enterprises. Survey in Croatia was conducted with combination of CATI and CAWI collection method by a professional data collection agency. Data collected was compared based on a demographic criterion, industry background, experience in business transfer, expected future of the company, support needed and biggest challenges. Results: The research results indicated a growing number of entrepreneurs in Croatia who will be interested in selling their firm once they withdraw from the business and less than expected family business successions. In Finland the most important challenges are related to business valuation and finding a successor or a buyer. Conclusion: For further development of business transfer ecosystem in Croatia it is recommended to focus on awareness raising activities, channels for matching sellers and buyers, promotion of takeover entrepreneurship and consultancy support for micro enterprises. In Finland results indicate the importance of investing continuous efforts in raising the effectiveness of the measures implemented