February the 22nd, 2021 - Rimac Automobili, owned by Croatian entrepreneur Mate Rimac, has gone from strength to strength and it seems as if that run is far from over.

As Poslovni Dnevnik writes, Bugatti and the Croatian entrepreneur Mate Rimac are becoming closer than ever in their relations, with a company takeover from Rimac seeming closer to coming to fruition than ever.

"At the moment, we're thinking intensively about how to ensure the development of Bugatti in the best possible way. Croatian entrepreneur Mate Rimac could play a significant role in all of that because the two brands fit very well in a technological sense,'' Porsche's Oliver Blume told Automobilwoche.

The Croatian company Rimac Automobili and Volkswagen's supercar brand Bugatti are a fantastic couple in terms of technology, said Oliver Blume, Porsche's director for German Automobilwoche, Reuters reports. The statement reawakened hope that Croatian entrepreneur Mate Rimac's beloved company could indeed take over the gigantic Bugatti, which has, as Telegram writes, been being talked about for several months now and would mean an enormous amount for Croatia's place on the car map.

Namely, back in September last year, the British portal CarMagazine announced that the Volkswagen Group would hand over Bugatti to Rimac Automobili, in exchange for increasing Porsche's share in Rimac's impressive company headquartered in Sveta Nedelja near Zagreb.

Volkswagen is also the owner of the Porsche brand, which has acquired a 15.5 percent stake in the Croatian company over the years. Back in 2018, they bought a 10 percent stake, and a year later they purchased another 5.5 percent of it. Britain's CarMagazine then claimed that VW's management intended to increase that share to a significantly higher 49 percent.

“There are different scenarios with different structures that we're looking into. I believe that a decision on this issue will be made in the first half of this year,'' noted Oliver Blume.

For more on Mate Rimac, follow our dedicated section.

February the 11th, 2021 - Just how have Croatian enterprises managed to cope with the ongoing coronavirus pandemic? Improvisation and being able to quickly alter business models has been the key to survival during these truly unprecedented times.

As Poslovni Dnevnik/Ana Blaskovic writes, the world is entering its second year of the coronavirus pandemic and, judging by the chaos with vaccine production (not to mention the appearance of new mutated strains), a return to life as we once knew it (and which we took for granted) will take time, which puts the issue of Croatian enterprises and their level of resilience in the long run at the very forefront.

Croatian enterprises, for the most part and in certain sectors, have done relatively well over the past year thanks to boasting an improvisation mentality without which the fall in Croatian GDP would have been even greater, but now is the time to truly take advantage of that.

"We in the region have shown ourselves to be creative because we're constantly living in a crisis here. We survived the first year of the coronavirus pandemic exclusively on the wave of improvisation, since Croatia enterprises generally didn't have any crisis plans, except for the biggest ones,'' stated Zlatko Bazianec, head of the Croatian office of Deloitte.

Contingency plans, for example, provide for concrete steps in the event of major disruptions, such as earthquakes. What if the location is compromised? What is the closest alternative, which people are critical, who will perform certain key actions and how - these are all steps that such a scenario has to work to predict, and in great detail.

Even the largest Croatian enterprises, however, weren't prepared for a combination of two disasters, a pandemic and a set of earthquakes at the same time. "During the first wave, we learned a lot, we adapted quickly. If we were to re-enter ''lockdown'' again we'd be more prepared because we've since learned how to perform most tasks remotely.

Due to constant improvisation, we have an advantage over those who normally live in an orderly society, such as Germany or Sweden,'' added Bazianec, who is convinced that Croatia has ''saved'' at least 5 percentage points of its GDP to pure creativity.

As a transition economy, the problem Croatia often faces is the lack of capital within its companies, so, in an environment with falling incomes and GDP, there isn't much room for tolerance for a long-lasting crisis. "That's why this advantage should be used for the future, and not just wait for a new crisis to happen," he said.

"Let's all learn something from this. We all need to be better prepared, there'es an opportunity here to shorten the supply chain and Croatian enterprises should try to conquer a new market or two. Education, investment in people and technology, health and the environment are key. The time for that is limited because when things go back to normal, then these other countries will come back much stronger and it will be too late,'' Bazianec said.

Figuratively speaking, large earthquakes, for which the term ''disruptive disorders'' is coined, can occur slowly and almost imperceptibly, like climate change, but they can also strike suddenly, like a storm.

The so-called ''film'' combination can't be ruled out either: earthquakes coincided with the coronavirus pandemic in Croatia, and political instability, protests against racism and Donald Trump's coup attempt happened across the Atlantic.

“Few organisations have been adequately prepared for the sort of turmoil we've seen on global markets during 2020. The overlapping global pandemic, social and political unrest, and deteriorating climate events have hit private and public sectors hard around the world.

An increasing number of challenges have expanded the concept of preparedness to ways that many could never have anticipated and put an unthinkable level of pressure on them,'' wrote Deloitte CEO Punit Renjen in the introduction to the 2021 Global Resilience Report.

Created by a survey of 2,260 managers in 21 study countries, the consulting firm examines how companies cope with the "new normal", how they respond to difficult choices, how they explore new ways of doing business and how they face fundamental changes in their strategies.

Such questions are crucial because most respondents believe that 2020 will not remain an exception, unfortunately. Over 6 out of 10 respondents expect new disturbances to occur, either occasionally or regularly, and as many as three quarters believe that the climate crisis is similar or even worse than the ongoing coronavirus pandemic.

There's a message to be sent out to Croatian enterprises and business owners, and that is that there are several main attributes of resilient companies:

Corporate culture

They're prepared, adaptable (primarily thanks to having more versatile employees), willing to cooperate within their organisations, they're reliable (again with an emphasis placed primarily on employees) and they're responsible.

These characteristics don't arise by themselves but require desire, effort, investment and moves to cultivate and sustain them, and companies in which they intentionally become a ''mindset'' and corporate culture are at an advantage as they seek the path to a ''better norma''’ in a post- pandemic world, the study concluded.

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February the 10th, 2021 - The manager of the popular Zagreb City Centre One shopping outlet, which (in pre-pandemic times) drew in many bargain hunters on a daily basis, has now made a bold business move and taken over yet another Croatian shopping centre.

As Ana Blaskovic/Poslovni Dnevnik writes, CC Real, the manager of the Zagreb City Centre One shopping centre, is set to take over the management of the Max City shopping centre in the beautiful Istrian city of Pula, which is under that company's umbrella. The company specialising in property management is taking over the strategic and operational management, accounting and mediation in renting the largest shopping centre in Istria with the "intention to improve all processes in everyday work".

Pula's Max City otherwise covers more than 27,000 square metres of retail space and 800 covered parking spaces. Opened back in November 2018, it employs several hundred people, among about 60 of the brands present among the shopping centre's tenants are names like H&M, Mango, Stradivarius, Bershka and Pull & Bear, Reserved, Mohito and Sinsay, Elipso, L’Occitane and the CineStar multiplex. Along with them are, among others, gastronomic offers of various kinds, cafes, a children's playroom, and even a charging station for electric cars.

"We believe that our motivated team of professionals, with their general and industry knowledge, as well as their vast local and international experience will contribute to the growth of Max City in cooperation with the tenants, partners and suppliers," said CC Real director Davorin Profeta.

CC Real has otherwise been operating since back in 2006, and through three City Centre One shopping centres, including the one in the capital, it has invested more than 435 million euros in Croatia in total. Despite two changes of ownership of the Zagreb City Centre One East and West, CC Real continued to manage them well. Back at the end of 2012, the business was expanded to Austria, then to Hungary and even further afield to Finland.

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February the 5th, 2021 - Croatian business owners have had their say, but many believe it will be ineffective. The recent protest was covered across the country, but what will actually come of it?

As Poslovni Dnevnik/Marija Crnjak writes, several thousand protesters, mainly Croatian business owners, gathered on Wednesday at Zagreb's Ban Jelacic Square to attend a rally organised by the Voice of Entrepreneurs Association (UGP) over dissatisfaction with the Croatian Government's measures to stop the spread of the pandemic and properly compensate business owners who have been banned from working, such as gym, sports centre, cafe and restaurant owners.

The main demand of the gathered Croatian business owners, who were mostly from the catering and hospitality sector, as well as gym owners who have been banned from working since November, is fair compensation for the ban on their work, but the protesters are also bothered by discrimination in the imposed measures. Most of them are also asking for the re-opening of cafes, which have not been confirmed as places where the virus has spread more rapidly or more efficiently, but a decent number of those protesters still don't expect the move to bring about the changes they're asking for.

"Our action is not directed against the epidemiological measures, we just wanted to show that we're dissatisfied with the economic measures that aren't sufficient or adequate. Measures to preserve jobs of 4,000 kuna are intended for employees and can't be a measure of assistance for business owners. We aren't living, we're simply surviving. We want quality economic measures and a plan for how the government will help the economy. We're seeking compensation for all Croatian business owners who have had to close their doors.

We believe that it's now high time to think about the activities that are closed almost all year round. The event industry, travel agencies and the occasional transport of passengers are recording huge losses, and there's no help for them,'' said Drazen Orescanin, Executive Director of UGP. He added that Croatian business owners need clear announcements of any new or altered measures in time, and that they don't want to hear about the new measures in the media and wonder what they're going to be as if it's a lottery.

Andrija Klaric, the owner of a Zagreb gym who was arrested on Monday after opening it that morning, also addressed those gathered. Marin Medak stepped in as the former president of the National Association of Caterers, now a member of its supervisory board, saying that the state is treating those in hospitality and catering as if they're mere third-class citizens. At a press conference held almost at the same time, members of the National Civil Protection Headquarters told the protesters that the measures would be eased when the conditions were met, which is something that is being monitored continuously.

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January the 29th, 2021 - The Karlovac company Maticnjak has invested in new technology and expanding overall business, entering into some of the largest retail chains.

As Poslovni Dnevnik/Marta Duic writes, the Karlovac company Maticnjak has been producing healthy food for more than 10 years, from cold-pressed oils, functional honeys, macerates, seed pasta, fruit spreads to granules and herbal mixtures. Behind the products under the brand of the same name is a team of only 12 people, they have 65 products in their assortment, and with the new line they are working on, that figure will rise to 90.

The production is of course located in Karlovac, and at the end of the year they started designing a new production hall of 800 square metres in the Karlovac area of Mahicno.

“In a sea of ​​brands that promote and sell healthy food, we've decided to do something a bit different, producing products that are fresh, healthy, local and minimally processed, without additives, stabilisers and added flavours. Our lemongrass products are completely natural packages of original, active nutrients from seeds and plants, preserved from over-processing and aggressive methods.

For us, last year was extremely successful, which is, to some extent, the result of the threat of the coronavirus, and consequently the raised level of general awareness and the recognition of Croatian products. However, that wouldn't have been possible if we hadn't already been on a good business journey by then.

We dedicated the whole of 2019 to the development of new production lines, and at the beginning of 2020 we signed an agreement for the award of EU grants for innovation in S3 areas. With that money, we provided new, innovative technology for development, and with new plant extracts as project leaders, we found our niche.

Strong antioxidants - polyphenols and OPC, artemisinin and thymoquinone are the base of the innovative preparations of our brand and extracts that we'll offer on the market of industrial pharmaceutical, food and cosmetic production,'' they explained from the Karlovac company Maticnjak.

Maticnjak's brand products can be found in specialised health food stores, pharmacies, and recently in Kaufland, Lidl and Veronika delicacies.

With their business partners, this company also has the Fitzona centre, a point of sale in Zagreb where they offer a complete range. As they revealed, the most sought after products are food hemp, sycamore and black cumin, and the absolute sales champion is Macerat 14, a dietary supplement made up of sweet wormwood extract in black cumin oil.

"We're currently negotiating with other retail chains because the level of interest in our products is constantly growing. Our web store is a newer sales channel, launched back in early April, and we're genuinely surprised by its results.

It is worked on every day and is the most vital part of our sales, it's constantly changing and adapting to the wishes of our consumers. During both lockdowns, we recorded sales growth, and customers prepared stocks of our products, which shows the importance and role of food supplements and food products in their daily lives,'' said Ksenija Tumbas, the director of sales and marketing at Maticnjak.

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January the 27th, 2021 - The Croatian company Infobip has had some incredible achievements to boast of over time. From humble beginnings to being recognised and respected across the world, this Croatian enterprise has worked with some huge names. It seems that trend is set to continue.

As Poslovni Dnevnik writes, the largest Pakistani bank, Allied Bank, has included WhatsApp communication with users in its business, and the Croatian company Infobip will help in its implementation and making sure it performs to the best level possible.

Through this new cooperation, the Croatian company Infobip will additionally position itself as one of the global leaders, and Allied Bank will get an excellent solution in terms of cloud communication, availability and satisfaction of many users, the companies claim, as was reported by ICT Business.

More specifically, the Bank of Pakistan wants to strengthen its overall digital presence and offer for its universal banking users in a way that would meet their expectations. Of course, in order to achieve something like this, it is necessary that these services and digital presence be in line with what is required and expected today in terms of the connection between the organisation and its end users.

In this case, something like this is set to be achieved through the wildly popular WhatsApp channel, which means that it is necessary to enable a chatbot that will be at the service of users in every sense.

For example, if an end user is interested in their account balance, the specific details of a particular transaction, the benefits that the bank offers and information about the branch or ATM in its vicinity, the chatbot will have to be up to standard and completely accurate, but also fast, which the Croatian compan Infobip will have no issue in providing.

In addition, the interaction itself must be simple, so that users immediately understand all the benefits of WhatsApp communication with Allied Bank.

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January the 18th, 2021 - The Croatian Government has taken steps to determine the largest amount of state aid which can be paid out to individual companies located/headquartered in the earthquake-stricken areas of central Croatia, more specifically Sisak-Moslavina County.

As Poslovni Dnevnik/Marija Brnic writes, with two decisions, the Croatian Government recently took the first steps towards the preparation of a long-term reconstruction of the earthquake-affected areas of Sisak-Moslavina County. At the suggestion of the Minister of Physical Planning, Construction and State Property, Darko Horvat, the renovation of buildings in these areas will be included in the law on reconstruction of Zagreb. As for the second part, which regards the re-design, preservation and restoration of economic life, which should go hand in hand with reconstruction of properties, will be in the hands of a special working group which will develop programmes for the social and economic revitalisation of the quake-affected areas.

The aforementioned working group is headed by Minister of Regional Development and EU Funds, Natasa Tramisak, and the Minister of Economy and Sustainable Development, Tomislav Coric. This government team will work to unite all competent departments from the Croatian Government, as well as all other actors, including the likes of the Croatian Employers' Association.

Minister Coric believes that the documentation that the working group will produce will provide a vision for the continued development of the area, which is necessary after the first measures that seek to lend a hand to those business owners who have suffered the most damage behgin. The priority of all of the measures, he says, will be to create a basis for people to stay in the affected area. Since the working group is yet to be formed, it is only known that the revitalisation programme will determine specific measures and projects, as well as who will be responsible for their implementation, and who will determine the method of financing all of the reconstruction measures.

The deadline for drafting this comprehensive reconstruction concept isn't actually stated in the Croatian Government's decision, but it is obvious that it will take months for this work to be carried out. For now, the Ministry of Economy is coming out with two "fire-fighting" instruments that it can provide first-hand to affected entities, especially small ones, to cover the most necessary costs of repairing the damage and to continue operating.

The first measure with the implementation of which his Ministry will start in ten days is the publication of a call for the allocation of ten million kuna. These are grants that were provided, as confirmed by the Ministry, with a recent aid package for the affected area through the Environmental Protection Fund. It isn't really a large fund that would cover all of the needs of business owners who suffered damage, and Minister Coric estimates that this could cover the most necessary costs of repairing machinery and business premises as well as other necessary expenses of small business owners from Glina, Petrinja and Sisak.

According to him, several hundred such business owners can count on this assistance from the available fund, and the largest individual amount of assistance will be 30,000 kuna. The significant package of 1.5 billion kuna of non-refundable aid intended for the increase of production capacities, procurement of equipment and digitalisation has been being prepared for months and isn't actually directly related to the rehabilitation of earthquake-affected areas. However, Minister Coric has since announced that business owners from the Banovina area will be able to count on a kind of advantage, since they come from an area with ​​a lower development index, which will be "especially valued".

The conditions that interested business owners from the quake-stricken area need to meet and the programmes they can apply for, and the criteria for that programme that will be implemented through Hamag-Bicro, are all still being adjusted. The maximum amount that business owners, micro, small and medium, will be able to withdraw from this grant scheme under the project isn't yet known, but the assumption is that, judging by previous similar programmes, the range could be from 1 million to 15 million kuna.

According to the latest data, 750 craft (obrt) owners and 850 other companies have reported earthquake damage so far, and from yesterday's statements of the competent ministers, it is evident that it is still not possible to get to a definitive figure and add up the total damage caused by the devastating earthquake.

Therefore, the measures that will be comprehensive are yet to come to the table, and the ministers say that Sisak-Moslavina County has an important place. In the next phase, the preparation of a special tax model for the Banovina region has been announced, in order to encourage the maintenance and development of the economy in the area. The Croatian Government expects the maximum engagement of local companies, and the Minister of Economy has stated that when it comes to investments, "the readiness of a number of countries on a bilateral basis related to the recovery and reconstruction of infrastructure" in the affected area is present.

For more on the Petrinja earthquake, follow our dedicated section.

January the 18th, 2021 - The amount of Croatian companies actively seeking government aid in the form of numerous economic packages designed to retain jobs has doubled in the last two months alone. Despite a much better epidemiological picture in Croatia, with new cases of infection dropping dramatically, many Croatian companies are still struggling to stay afloat in what are very lean times indeed.

The winter months are usually more difficult for many, especially those who own businesses operating within the tourism sector, Croatia's strongest economic branch which simply cannot afford to be broken. However, with the coronavirus pandemic still raging, despite the advent of the vaccine, Croatian companies still need the government to step up.

As Marina Klepo/Novac writes, as government ministers continue to come up with and pass new economic measures to try to preserve jobs, extend those measures, expand coverage and devise new rules for applying for them, many Croatian employers continue to complain that their payouts are arriving late.

Those who are particularly dissatisfied are those operating in the heavily-hit hospitality and catering industry, who aren't currently allowed to even work, yet their bills keep on arriving. They have been pointing out that they haven't yet received their government grants for the month of November 2020.

Claims for the reimbursement of fixed operating costs are still being submitted, and the state should then reimburse those who apply successfully for that measure within 60 days. The Croatian Government institutions, on the other hand, claim that all grants for October have now been paid out, that possible arrears for November will be paid by the end of this week. They also claim that grants for December will be paid in January.

According to the Croatian Employment Service (CES), the number of Croatian companies seeking support back in October and November increased significantly compared to what the situation looked like during the summer months, in fact, it has more than doubled.

However, the real jump will only be shown by the data for December 2020 and January 2021. Back in October last year, 25,670 Croatian companies sought state support, about ten thousand more than in September, in November that number reached almost 32 thousand, and a total of 120,273 people were employed. A record number of Croatian companies in need of state assistance was seen way back in April, with as many as 100,864 seeking it, with a total of 594,444 employees.

By the end of November, a massive 7.6 billion kuna had been paid out to Croatian companies in the form of government grants. While the negative impact of the ongoing coronavirus pandemic has hit business owners working in tourism and hospitality the hardest, the latest Fina analysis shows that there are also sectors that are actually coping well with this crisis.

With a minimal risk of "default status", 1251 Croatian companies continue to successfully operate, with 1085 of them not applying for government assistance measures even once.

The assessment of their credit rating is calculated on the basis of submitted annual financial reports, data on the state of any blockages placed on them by the state and the status of bankruptcy, pre-bankruptcy and liquidation.

In the group of the most stable Croatian companies, most of them, more precisely 263 of them, are those who operate in the manufacturing industry, a sector that has been exposed to great market pressures for years now. This sector is followed by trade with 259 Croatian companies, enterprises working in professional, scientific and technical activities (133), then construction (87), water supply and wastewater disposal (63), and transport and storage (58).

When it comes to the size of a company, the analysis shows that the group of the most stable enterprises includes 715 medium-sized Croatian companies, 183 large ones, 181 micro-enterprises and six who are technically defined as small.

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January the 17th, 2021 - This year began with a little bit more optimism for the Slavonski Brod-based Croatian company Djuro Djakovic, unlike last year, when they fought for their salaries with protests.

As Poslovni Dnevnik writes, Djuro Djakovic's restructuring process has now begun, and a strategic partner is actively being sought, without whom it will be difficult for the Croatian company to be able to stand on its own two feet.

The halls of Djuro Djakovic's Special Vehicles are working at full steam, they are the largest within the wider Djuro Djakovic group, and freight wagons are their current trump card, HRT writes.

''They have reduced losses on the wagons and have managed to reach the stage of operating for certain months with profit,'' said the President of the Management Board of the Djuro Djakovic Group, Hrvoje Kekez.

''So far things are good, we'll have to see what will happen later,'' said Sinisa Rajkovic, a Djuro Djakovic Special Vehicles employee, adding that they say the company is now moving in the right direction. In fact, they're moving in only possible one, which is the direction of proper restructuring under the watchful eye of the EU's capital of Brussels.

''This year has started out in a much better way. As the company's management has informed us, the agreement that has been reached is good,'' said Ivan Baric, Deputy Trade Union Commissioner in the Djuro Djakovic Special Vehicles company.

Last year, which was horrendous for the majority of companies, the company started with massive debts of 600 million kuna. To prevent them from slipping into bankruptcy, the state helped with a loan guarantee of 300 million kuna. Now they are working again, bringing order to the table and seeking a strategic partner. Two non-binding offers came from the Enno Group of Pavle Vujnovac and a consortium of Czech companies that have recently owned a stake in Djuro Djakovic.

''I think that both potential investors have the strength and vision and certain needs for such a group,'' stated Kekez.

The Metalworkers' Union expects that the high level of social rights that Djuro Djaković's employees have in the collective agreement which has been reached will be maintained, said Antun Stivic, Deputy President of the Croatian Metalworkers' Union. The company's employees want to believe in the survival of the company.

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January the 16th, 2021 - There is a lot to be said for the innovative Croatian startups which have popped up over recent years, with many gaining global respect and recognition among the biggest players. The Croatian Neostar platform is another story of innovation from Croatia.

As Poslovni Dnevnik writes, the Croatian Neostar platform is a new platform for selling, buying and maintaining vehicles. Namely, used vehicles can be advertised and sold free of charge for all legal and natural persons, and customers get a transparent insight into the condition of the vehicle, because the innovative Neostar platform inspects as many as sixty key points, and there is additional security when making a purchase because all of the listed vehicles have either factory or Neostar platform warranty.

Behind the domestic Neostar platform is the Croatian startup Neostar d.o.o., and more than 35 million kuna has been invested in its very development. The long-term goal of the Neostar platform is to attract new investors and investments in order to enable further development of the platform as well as make confident steps into other markets.

"The automotive industry as a whole, and thus the car trade globally, isn't among the leaders when it comes to digital transformation, but we can say that it's even actually lagging behind in this area.

According to previous experience with online sales of new and used vehicles, we've seen room for the consolidation and digitalisation of services not only locally but also globally. That is why we launched the startup Neostar which based in Croatia, but has global ambitions. We see the launch of the Neostar platform on the Croatian market as just the very first step. According to the innovation we're bringing to this market segment, we can say that we're a kind of AirBnb for used vehicles,'' said Dimitrije Trbovic, President of the Management Board of Neostar.

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