DEVELOPMENT OF FRANCHISING IN CROATIA OBSTACLES AND POLICY RECOMMENDATIONS

Franchising is very popular growth model but despite the wide application of franchising in the developed countries of the world, its impact on the Croatian economy is still marginal. The purpose of this research is to identify the obstacles and challenges to a wider application of franchising in Croatia and generate policy recommendations for removing the identified obstacles. Obstacles and recommendations are identified on the basis of a conducted longitudinal qualitative research, the first phase of which was conducted in 2006, and second in 2014. The overall results of this research were presented in a form of PEST analysis and compared with the results of the 2006 research aiming to detect changes (improvements/ deterioration) in individual areas of the research political, economic, legal and technologic factors of influence on the development of franchising in Croatia. Based on the detected changes, conclusions and policy recommendations were identified.The obstacles can be divided in two categories: franchising specific barriers and general business related obstacles for doing business in Croatia. Without removing most of these obstacles, it is unrealistic to expect high growth of franchising activities in Croatia in near future

Development of Franchising in the Emerging Market of Croatia

Franchising is a new sector in transitioning and emerging Croatia. Those companies involved in retailing, distribution, and wholesaling operations are now becoming aware of the benefits (and costs) of franchising as an organizational method and are considering its adaptation to the local context. However, franchising is underdeveloped with only a handful of active firms, lack of regulatory structure, lack of support from institutions, disinterested banks and little experience in the marketplace. Our contribution is an assessment of the franchising model in the Croatian context

The Concept of Entrepreneurship Education – The Case of International Centre for Entrepreneurial Studies at the University of Josip Juraj Strossmayer in Osijek

Poduzetničko obrazovanje je područje rastućega interesa na sveučilištima, poslovnim i javnim školama širom svijeta. Najvažnija uloga poduzetničkoga obrazovanja je razvijanje poduzetničkih vještina, ponašanja i osobina, koji će pojedincima osigurati snalaženje u uvjetima velike nesigurnosti i kompleksnosti uvjetovane pritiscima globalizacije na društvo, organizaciju i pojedinca. Unatoč tome, među teoretičarima ovog područja još uvijek ne postoji konsenzus oko koncepta poduzetničkoga obrazovanja, što dovodi do različitih shvaćanja o tome što bi trebao biti cilj poduzetničkoga obrazovanja, kako se organizira, kojim metodama i pedagogijom se služi te tko je kompetentan i tko treba sudjelovati u izvođenju programa. Pojava sve većeg broja poduzetničkih programa generirala je čitav niz važnih pitanja čiji odgovori omogućuju definiranje okosnice sadržaja, izvedbe i organizacijskog pozicioniranja poduzetničkoga obrazovanja. U ovom radu analizirani su razvoj i pozicioniranost poduzetničkih programa na Sveučilištu J. J. Strossmayera u Osijeku koji se razvijaju u okviru Međunarodnog centra za poduzetničke studije (ICES – International Centre for Entrepreneurial Studies).There is a growing interest at universities, business schools, and public schools all over the world in entrepreneurship education. The most important role of entrepreneurship education is developing entrepreneurial skills, behaviours and qualities that will help individuals cope with highly uncertain and complex environment caused by globalization pressures on the society, organizations and individuals. However, there is still no consensus among the scholars in this field about the concept of entrepreneurship education, which leads to different ideas about what the goal of entrepreneurship education should be, how to organise it, which teaching methods to use, and who is competent and who should participate in the implementation of the programme. Introduction of an increasing number of entrepreneurial programmes has generated a number of important questions which, once answered, will help define the content, and assist in the implementation and organisational positioning of entrepreneurship education within an organisation. This paper analyses the development and positioning of entrepreneurial programmes developed at the International Centre for Entrepreneurial Studies (ICES) of J. J. Strossmayer University in Osijek

Labour Mobility and Informality : Romanian Migrants in Spain and Ethnic Entrepreneurs in Croatia

This article is part of the issue "Re-Visioning Borders: Europe and Beyond" edited by Artur Gruszczak (Jagiellonian University) and Roderick Parkes (German Council on Foreign Relations).This article is a part of the Project "Institutional support to the immigrant entrepreneurs in Croatia: Socioeconomic and legal aspects" funded by the University of Zagreb (short-term research grants obtained in 2020 and 2021)Post-Weberian definitions see the state-individual relationship as a "do ut des" one. The state grants protection, education, medical care, and its citizens contribute labour, compliance, and taxes. When this does not occur, it is generally accepted that the citizens are deviating from state goals. However, there are cases where lack of compliance stems from the fact that society members do not feel protected by formal structures, and they rely on informal ones to replace, supplement, or even compete with state institutions. The starting point of this article is that this lack of support may result from enhanced labour mobility (and migration) across Europe, and may enhance the creation and persistence of informal practices. Taking advantage of two case studies, Romanian migrants to Spain and ethnic entrepreneurs in Croatia, we observe how governance is constructed and provide two novel interpretative frameworks. First, we explore the use of informality (informal practices) to suggest that apparently insignificant actions that are repeated routinely and without much thought, are a way to contribute to the construction of the political and that everyday governance should receive more attention. Second, we use this claim to argue that a better understanding of informality can help identify governance areas where interventions are more urgent. These are the spheres of public life where it is possible to identify a larger gap between the wishes of a state and the ways citizens actually act as they informally avoid or bypass its rules

Consultancy Services Market for Micro, Small and Medium-Sized Enterprises in Croatia

Business advisors and their impact on the perfor -mance of micro, small and medium-sized com- panies (MSMEs) have been in the focus of many researchers for a long time. MSMEs are reporting increasing interest in professional business advice, but only a small share of MSME owners is using consultancy services. This paper analyzes the con- sultancy market sector for MSMEs in Croatia, with a special focus on differences in the perspectives - gaps and overlaps of the supply (consultancy com- panies) and the demand side (MSME owners) of the market. The main objectives of the study are to identify and analyze determinants that influence consultancy market for MSMEs in Croatia, through opinions and views of the owners of MSMEs, on the one side, and consultants as service providers, on the other side (mirroring perspective). The empirical evidence in this paper is provid- ed through secondary research and primary re- search - a survey conducted among 303 MSME owners and 60 providers of consultancy services for MSMEs. The main findings of this study enable segmentation of the users of consultancy services for MSMEs and identification of market niche for MSME consultants. Based on the research results, recommendations for better understanding of MSME owners as clients of consultancy services are created, especially those related to improving marketing and service development strategies. The results of this study and the recommendations can be used by a wide network of advisory service providers for MSMEs (e.g. accountants, lawyers, IT consultants) for improving the quality of service and identification of market niches

Starajoči se podjetniki in izzivi prenosa posla na Hrvaškem

Business transfer as a research topic awakened the interest of researchers in the past few decades. Business transfer is defined as a change of ownership of any firm to another person or legal entity assuring the continuous existence and commercial activity of the enterprise, and it encompasses different kinds of transfers both to family and non-family members. Ageing and consequently retirement are often mentioned as the reasons for entrepreneurs' exits from the companies and intention to initiate the business transfer process. A successful business transfer process is one of the key prerequisites for longterm sustainability of small and medium-sized enterprises. There is a significant number of ageing business owners in Croatia who will exit their companies in the coming years. Considering the number of these entrepreneurs and the influence their exits can have on company stakeholders and national economy in general, it is of great importance to better understand the factors that can influence the choice of their exit strategies. The aim of the paper is to provide an understanding of the dilemmas that the ageing entrepreneurs face when considering different exit modes. The data for the study was collected through in-depth, semi-structured interviews conducted with six ageing business owners. The analysis of the interviews enabled the identification of the challenges that ageing entrepreneurs face in the business transfer process: emotional attachment to the firm, strong preference for family succession and concerns about financial security after retirement. Some of these challenges are a result of the undeveloped business transfer ecosystem, strong tradition and cultural values that imply family succession as the only acceptable exit strategy for retiring company owners in Croatia

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

BUSINESS TRANSFER ECOSYSTEM IN CROATIA - MISSING COMPONENTS AND INTERACTIONS

Business transfer is an important issue that the European Commission has been actualising since the early 1990s, when the first recommendations for the improvement of national business transfer ecosystems of the EU countries were created. Neglecting business transfer as a critical phase in the development of a company can have significant negative implications for companies, their owners and wide network of stakeholders. Business transfer is a particularly important topic for the Croatian economy where more than 5,300 businesses with around 57,000 employees represent a risk group whose owners underestimate the complexity and longevity of the business transfer process. The aim of this paper is to analyse the structure and quality of the business transfer ecosystem in Croatia. For this purpose, secondary research and a qualitative study in the form of interviews with representatives of key stakeholders were conducted. The Croatian business transfer ecosystem is benchmarked to the national business transfer ecosystems of Spain, Finland, Sweden and France, based on the data collected through the EU project BTAR. The research results indicate low level of development, interconnection and complementarity of individual components of the business transfer ecosystem in Croatia. Policy recommendations for improving the quality of the business transfer ecosystem in Croatia were identified

Izzivi prenosa lastništva malih in srednjih podjetij

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.Ozadje 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