ZAGREB, 21 July 2022 - Businesses should adopt the euro changeover code of ethics and in the current circumstances no business should make "profiteering and speculative" moves, Prime Minister Andrej Plenković and Economy Minister Davor Filipović said on Thursday.

Presiding over the 16th session of the national council for adopting the euro as the official currency, Plenković said this was the first session since the final EU decision on Croatia's accession to the euro area on 1 January 2023.

In the final stage of introducing the euro, all mechanisms should contribute to creating a secure environment for consumers, which means that businesses should accede to the ethical code, he said.

In circumstances of inflationary pressures, he added, no business should make moves that are "profiteering and speculative and that are not in line with the moment and broad social responsibility."

"All actors in society must now show an element of social responsibility," Plenković said, adding that everyone must "understand that we must overcome the crisis together."

Adopting code of ethics as of 16 August

Presenting the code of ethics published last week, Filipović said it should contribute to a secure environment for consumers and to correctly converting and displaying prices, without unduly raising them.

It is intended for all financial and non-financial businesses doing direct business with consumers. Adopting the code is free and voluntary and will be possible via app from 16 August until the end of 2023. Filipović called on all businesses to adopt it.

As of 5 September, when prices must be displayed in both kuna and euro, citizens will be able to commend or complain via app about businesses that have not adopted the code, he said.

Croatia joining the world's most developed countries

Plenković said the accession to the euro area, to coincide with accession to Schengen, meant that Croatia was joining the most developed countries in the world and the EU.

Central bank governor Boris Vujčić said 420 million euro coins would be minted this year and another 230 million in 2023.

He said 350 million euro bills were being procured and that banks, post offices and the Financial Agency would be supplied with bills and coins as of early October, while citizens and businesses would be supplied as of 1 December.

The demanding job of adjusting ATMs will begin in December, Vujčić said. Some will have kuna until the last day of the year, while some will be adjusted so that they can issue euros as of 1 January. As of 15 January, all ATMs should issue euros.

Finance Minister Marko Primorac said 60 laws would have to be aligned in fast track, starting from 25 August.

For more, check out our business section.

ZAGREB, 16 May 2022 - Of 311,698 registered business entities in Croatia, 172,438 or 55.3% were active in March 2022, according to data from the Croatian Bureau of Statistics (DZS).

Most of the business entities were trading companies. At the end of March 2022, there were 234,561 trading companies registered, and 137,664, or 58.7%, were active.

There were 73,589 institutions, associations, and organizations, of which 33,965 or 46.2% were active, as well as 3,548 cooperatives, of which 809 were active, and 88,184 sole proprietorships and freelancers.

Out of 172,438 legal entities that were active at the end of March 2022, 66,497 or 38.6% had no employees. There were 88,205 legal entities (51.2% of the total number of active entities) with one to nine employees, 13,677 (7.9%) with 10 to 49 employees, 3,468 (2.0%) with 50 to 249 employees, while large business entities with 250 employees and more accounted for only 0.4%.

The structure of business entities by activity shows that more than half of registered and active businesses operated in four sectors – wholesale and retail trade and repairs of motor vehicles and motorcycles (17.7% of registered businesses and 16.0% of active ones), manufacturing (7.8%; 8.9%), professional, scientific and technical activities (10.2%; 12.6%), and other services (16.2%; 13.1%).

Broken down by type of ownership, 79.1% of businesses were privately owned, 0.8% were state-owned, 0.4% were in mixed ownership, 0.5% were cooperatives, while the ownership of 19.2% of businesses was not tracked.

A total of 168,599 business entities were registered as limited liability companies (71.9%) and 100,979 of them were active (73.4%). There were also 63,031 simple limited liability companies (26.9%) and 35,164 of them were active (25.5%).

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ZAGREB, 15 Nov 2021 - Businesses in Vukovar-Srijem County generated a consolidated net profit of HRK 655.5 million in 2020, which is an increase of 7.2%, while gross investments in new long-term assets decreased by 43.7% to HRK 193.9 million, a report by the Financial Agency (FINA) shows.

A total of 2,273 businesses had their registered headquarters in Vukovar-Srijem County and employed 20,063 people, which is an increase of 310 or 1.6% year-on-year.

Entrepreneurs in the county generated a total revenue of HRK 22.7 billion in 2020, up 17.4% on the year, whereas total expenditure increased by 17.8% to HRK 22 billion.

Profit amounted to HRK 1 billion, which compared to the previous year was an increase of 10.2%, while losses jumped by 16.3% to HRK 359.3 million. The result is a net profit of HRK 655.5 million or an annual increase of 7.2%.

Exports rose by 39.2% to HRK 9.2 billion while imports fell by 9.6% to HRK 968.1 million, resulting in a trade surplus of HRK 8.3 billion.

The average net monthly wage amounted to  HRK 4,749, or 6.5% more than in 2019, and 20.5% less than the national average of HRK 5,971.

Of the two largest cities in the county, Vinkovci registered 688 enterprises with 8,267 employees and a loss of HRK 170.8 million, whereas Vukovar generated a total revenue of HRK 13 billion and a profit of HRK 516.3 million or net profit of HRK 404.2 million, FINA reported.

The Prvo Plinarsko Društvo gas company from Vukovar generated the highest profit in that period (HRK 226.6 million), the highest total revenue (9.8 billion) and the highest revenue from foreign sales (HRK 6.9 billion).

The Boso retail chain from Vinkovci had the largest number of employees (965) while the biggest loser in 2020 was the PIK Vinkovci Plus agriculture company,  generating a loss of HRK 70 million.

For more, make sure to check out our dedicated business section.

ZAGREB, 18 Oct 2021 - In 2020, there were 914 businesses in Croatia's grain-based food industry, and they employed over 15,000 workers and earned HRK 4.5 billion, according to data provided by the Finance Agency (FINA).

Those businesses, specialized in producing grain-based foods that may include bread, cakes, pies, pastries, and similar foods, saw a 2% drop in the headcount to 15,121.

The bakery industry's revenues of HRK 4.5 billion contracted by 6.1% compared to 2019, and its expenditure also dropped by 4.5% to HRK 4.34 billion.

As a result, the consolidated net profit of those 914 businesses was HRK 96.1 million, down by 44.3% year on year. Furthermore, 515 businesses, or 56.3%, finished 2020 in the black, while others were running at a loss.

The bakery industry's exports increased 12.3% to HRK 196 million, and imports jumped by 26.7% to HRK 155.8 million. Thus, the trade surplus came to 40 million kuna, but was 22.1% lower than in 2019.

The average monthly wage in this sector was HRK 4,450 and was 25.5% lower than the average monthly take-home pay in Croatia last year (HRK 5,971).

The biggest business in the grain-based food industry in 2020 in the terms of revenues and in terms of employment was the Zagreb-based Mlinar company with its earnings of HRK 579.1 million, which amounted to 13% share of the market. It employed 1,560 workers whose average salary was HRK 5,700.

The Pan-Pek company followed, with HRK 256.1 million in revenues and 681 workers. The third-ranked was "Zagrebačke pekarne", with HRK 220.3 million in revenues and 534 employees.

(€1 = HRK 7.511955 ) 

For more, check out our business section.

September 3, 2021 - Infinity Luxury smart showers have made their way to the United States, with the first shipment to Boston!

Infinity Luxury is a Croatian company that produces designer outdoor showers of stone, ceramics, and HPL. In parallel, they develop their own brand of high-tech products. They currently also offer a solar shower with solar power and water activation on motion sensors, reports HRTurizam.

Infinity Luxury has become a Croatian export product and in the past year has opened the markets of Australia and New Zealand, and France, Sweden, Norway, Finland, and Denmark. Interestingly, the opening of new markets can be attributed to communication on Linkedin, so today, Infinity Luxury is available through agents in the markets of Israel, New Zealand, Scandinavia, Spain, Portugal, Switzerland, Poland, Dubai, Austria, China, Georgia, Serbia, Czech Republic, France, Italy, and Slovakia.

Infinity Luxury's designer showers have now hit the American market, more precisely, Boston.

When asked what the plans are for the US market, Stefano Ladavac, CEO of Infinity Luxury, said that they are currently writing a new history of the company to be talked about in the future and that all employees participated in the first packages for the US market.

"It's the first of two shipments to America. The first delivery is stone showers made of Istrian stone. A beautiful story also happened. The distributor of Pazin stone came to us through them, so now two Istrian brands and manufacturers merged with one distributor for the American market. The first shipment goes to Boston, and one part will also go to New York. The company's goal is to focus on developing the American market, because for us it is one of the markets with the greatest potential, along with the markets of Australia and the Middle East," Ladavac points out and adds that there was a lot of emotion when packing the first shipment, knowing that someone in America will shower under their Istrian-made products.

Otherwise, the company's business model is based on b2b communication, i.e., according to architects and distributors, which is a great example of differentiation in the market and branding of products outside the category of classic outdoor showers.

"We had great help from the co-owners, Marko and Nikola Jurman from the company Filix d.o.o. who solved all the documentation and paperwork, i.e., everything that was needed for the first shipment because they would not know it themselves - neither how to start nor what needs to be prepared," adds Ladavac and emphasizes that he sees a big problem for all small companies, especially manufacturers, as it isn't easy sending products to foreign markets, especially the US.

"Often companies have the will and look to foreign markets, but do not know how and where to go. It would be great if there were companies or business angels who may not necessarily have to invest in companies but have answers to all questions related to opening new foreign markets. I think it would be a great help to small companies, who would then get concrete answers and even contacts from partners and distributors, to make the whole process as fast and best as possible and start exporting. We can now, for example, help someone open some markets, such as the United States, while a year ago we did not know that. It would be great if some organization or company would help such companies in the beginning and show the way or open the door. Both with knowledge, skills, and contacts. Later it is much easier when you already have some experience and framework," concludes Ladavac.

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December 15, 2020 - Croatian skincare brand Skintegra handed over an admirable 100,000 kuna donation to ten animal associations and shelters in Croatia last month. Founder Jelena Skendžić Ratkajec discusses the importance of social responsibility for companies in Croatia and each of us.

It's often easier to find an excuse for why we can't be responsible, help, or choose to remain silent. Turning heads is sometimes simpler than offering helping hands. 

However, Croatian beauty brand Skintegra is a shining example of a Croatian business putting social responsibility at the forefront of its philosophy. And despite the coronavirus pandemic, they donated a large sum of money to abandoned animals this year, reports Novi List.

Since its beginnings, the favorite Croatian cosmetics brand has been actively participating and organizing campaigns to raise public awareness for the protection and responsible treatment of animals.

The campaign titled #daj5 (#give5) was launched in October, the month dedicated to adopting animals. During the campaign, Skintegra donated 5 kuna for each product sold.

Soon, the campaign was supported by numerous fans of the brand. Those who posted photos with their pets on social networks with #daj5 saw another 5 kuna donation, thus collecting a total of 100,000 kuna in donations to shelters and associations throughout Croatia. 

“We have been supporting volunteer associations since the first year of business. In the first, second, and third year, it was a food donation. This year we decided to donate a sum of money.

We distributed the 100,000 kuna donation to 10 associations that have a lot of cats and dogs. The reason why we decided to make a monetary donation this year versus a food donation lies in the fact that in the meantime, we have learned about the many costs and problems that associations have, which I think people are not aware of," explained Jelena Skendžić Ratkajec, Skintegra founder.

As she points out, associations and shelters have several costs, such as those for sterilizations, treatment of numerous injuries when animals come from the street, and accommodation for those same animals.

“Of course, it all stems from our love for animals and care for the environment. It is a kind of personal mission that my husband and I have in our daily lives and committed ourselves when we started Skintegra.

We ourselves are foster parents of four street cats (one of which we adopted 9 years ago through Prava šapa), and I really can’t describe how positively they have changed our daily lives and us as humans. I would advise everyone to adopt an abandoned animal if you can afford it because I believe that animals enrich our lives and help us develop a special kind of empathy for the world around us,"  said Jelena.

Skintegra launched the first campaign in 2017, and Jelena remembers how modest she was in her reach, but it all came from the heart. Several thousand kuna was collected, and food was bought, which they personally distributed to associations throughout continental Croatia.

"It was in January, the weather was terrible, the roads were covered with snow, and these volunteers were so happy when they welcomed us. It opened my eyes to these people's needs: how little is enough to make a big difference in their lives and their efforts to help further. The following year we wanted to collect more, after that even more. A bit megalomaniacal, but with good intentions. 

This year was truly the crown of last year’s campaigns - we raised even more than we had planned. I am immensely grateful and happy for the people who decided to support our campaign and make my dream come true. And more than that, I am grateful to the volunteers who dedicate every day to what seems like a fight against windmills but still don’t give up on what’s right. That is the most beautiful example of the triumph of the will. "

The entire amount this year has already been distributed to asylums and associations throughout Croatia: Prava šapa, Association “SOS CAT” and Hrabre njuške from Zagreb, Association Deveti Život from Osijek, Detiti Život from Split, Association Sklonište dobrote from Čakovec, Žarkovica Azil from Dubrovnik, Udruga Šapa U Srcu from Ogulin, Papagalo Dog Shelter - Korcula and the Association Ruka Šapi Pula.

"I feel grateful, but also the urge to do more next year. I also feel humility. Not even in my wildest dreams did I think I would ever be in a position to help someone with a gesture like this.

I am humbled by the very idea that we can make a difference at all by giving up what should be normal and what we should all expect from companies as consumers. Next year we have to do more, and there is no compromise on that. Making the world a better place for tomorrow is everyone's responsibility," Jelena emphasized.

But it’s so easy to find an excuse not to take responsibility, especially this year when the coronavirus pandemic tests us in all walks of life. But as challenging as this year has been, it has not stopped Skintegra from achieving its goal.

"I can't say that this year we will have a decline compared to last year, although we will not have the growth we hoped for before COVID-19. But even if we had a drop in traffic, our mission would remain the same.

As I said before, we started giving support to volunteer associations in the most vulnerable period of our company's life - in the very beginning - and we never doubted that this was the right move for Skintegra. There is something called business logic, which ensures the ‘health’ of any growing company.

There is also something I call business empathy; it is the ability of those in leadership positions to see their employees as a priority, to lead by example, and to create positive change in their environment. In my opinion, logic is what should be in every company's background, but to lead a company forward, you need - empathy. The #daj5 campaign is simply a reflection of our philosophy and our internal values," Jelena explained uncompromisingly.

Recently, there has been an increasing talk of corporate social responsibility. Many companies worldwide use their influence to raise awareness of a particular issue or donate part of their income to charity. On the other hand, we can freely say that Croatia is lagging in this regard, especially when it comes to larger market players.

"Honestly, I would like other brands to follow the example of this positively intoned social practice, but you have noticed - companies that operate socially responsibly in Croatia are a rarity. Still, I think there is hope, and the situation is changing for the better.

I notice small but commendable steps, and I hope that every year the situation will get better. Corporate Social Responsibility (CSR) is a philosophy that every brand needs to have at its core to have the urge to do anything on that track at all.

In the background of socially responsible business is most often a waiver of a part of the profits. Still, it does not always have to be a modus operandi (for example, smaller companies that cannot afford it) - CSR can exist through raising awareness of a neglected but important topic. I think it’s important that everyone does something positive, as much as they can. That way, the whole world will be a better place," explained Jelena.

"The point is not that each of us makes grandiose socially responsible moves, but that we all pay small signs of attention to animals, the environment, neighbors, the elderly, and the infirm.

The little thing we can all give away is kindness. Too many people are burdened with negative worldviews and problems, and one small, honest, and kind word can truly brighten someone’s whole day. Additionally, the thing we can all do is recycle. The very fact that we recycle and that we are a kind person already makes us a better fellow citizen, neighbor, and friend, and it costs us nothing," advises Jelena

Jelena and her hard-working team at Skintegra will not stand on truly commendable results from this year but are planning what they can achieve in 2021.

"We already know roughly what we want to achieve next year and how we will implement it, but as our customers like a healthy dose of mystery and anticipation, it would not be fair to say all about it now, so I would like to wait until next year and, hopefully, better circumstances before we set out all the plans.

I can promise that next year we will certainly be re-engaged around the same campaign and express hope for even greater success. I believe that together we can achieve that," concluded Jelena.

Translated from Novi List

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''The most important thing is to have a clear plan and a vision and to be persistent and never give up, because every good idea will find its way to a buyer,'' this was the message sent out to those thinking of becoming Croatian entrepreneurs.

As Ivan Tominac/Poslovni Dnevnik writes on the 18th of April, 2019, an event organised by Vecernji list and Poslovni dnevnik has the ultimate goal of which is the retention of young educated people in Croatia, and after Osijek, the event will move to Koprivnica, two continental Croatian regions which are often overlooked.

The event will include a tender for student development projects, round tables and forums entitled ''Future in Croatia'' which will be held across six Croatian cities in cooperation with six universities and a traveling exhibition to mark the the occasion of the 60th anniversary of Večernji list. In Koprivnica, the event will be held in cooperation with the North University on Tuesday at 10:00. Croatia's Minister of Tourism Gari Cappelli will give his view of Croatia and available opportunities, and before that, the event will be bringing two stories from Koprivnica that prove that you definitely can succeed in Croatia.

Boris Poljak, the owner of the Pobis company, noted at the very beginning of the conversation that entrepreneurship is not easy but challenging as the market does indeed offer countless possibilities, but whether or not we're successful is down to nobody and nothing but us.

"Being an entrepreneur depends on the person, and not on the place he's in. If one has the will and the desire to be an entrepreneur, then he won't care whether he's doing it in Croatia, Austria, Germany, or elsewhere," Boris Poljak said. For success, it's important to abide by the established plan and rules of the game, ie, certain legal frameworks.

According to him, young people aren't going straight into business today, but instead, they're moving into ''entrepreneurial waters'' because they want to ensure a secure existence for themselves. "The statistics on the opening and the closing of companies is proof of this. Unfortunately, many people don't succeed, but there are many who do succeed and who achieve excellent results here, and more and more are doing so internationally. Running your own business today doesn't require that much capital," Poljak stated with a short and clear message that says that without a clear plan and vision there can be no success.

"You have to work really hard with young people, they're most often not prepared for work and have a lot of prejudices towards employers," emphasised Poljak, adding that in his company he recognised that with the effort and investment poured into young people, he was creating quality staff who could compete on the world market level. Young people are increasingly involved in entrepreneurial ventures, and as a result, there are numerous startups popping up all the time across Croatia, leading to more tenders and investments.

Codebox managed to stumble upon such a welcome fat, the core activity of this organisation is the creation of personalised software, web design, computer equipment maintenance, and processing and data transfer. Martin Kolarić and Filip Stojić began on this path through a startup tender, and today they can safely say that it was a great opportunity to gain new experiences, try out their knowledge and skills and also have some fun.

"For all those who want to be successful, our advice is to work on themselves and their knowledge. A great deal of information is available to all of us and we have the opportunity of continuous learning and training. Innovation and creativity are the most important competencies today, which is why we need to work on our own improvement, this is the only path to real success,'' concluded Martin Kolarić.

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Click here for the original article by Ivan Tominac for Poslovni Dnevnik