The lines of laid-off waiters, chefs and other hospitality workers in front of the Croatian Employment Bureau are concrete proof of the real market situation thanks to the increasingly concerning coronavirus outbreak.

Croatian entrepreneurs and company owners have looked at the recent set of coronavirus crisis measures, with some praise and others left unsatisfied and worried, comparing the measures to ''putting a plaster on a gunshot wound''.

As Poslovni Dnevnik writes on the 19th of March, 2020, despite the announced Croatian Government coronavirus measures, layoffs in the hospitality industry were set in motion, as evidenced by the rows of worried faces standing before the Croatian Employment Service in Zagreb yesterday, where dismissed chefs and waiters went to report.

Larger Croatian hotel companies haven't announced layoffs for their workers who hold permanent contracts so far, but they still won't be renewed for a fixed period. One such large company, Sunce, has stated that they will not fire anyone because they want to protect the health and economic security of their workers, aware that they will need everyone when they do open their hotels.

That particular company is awaiting Croatian Government measures and will adapt to the coronavirus-induced economic situation as it unfolds. Maistra is also busy with the employment of seasonal workers, and at the moment, the small Rovinj Adriatic Hotel and Zagreb's Westin remain open. Interestingly, a review of the hotel chains' social networks failed to find a single posted message about the closure of hotels in Zagreb.

The Croatian Tourism Association welcomed the government's response and the measures taken to maintain employment and liquidity. However, they warn that the measures must be properly specified as soon as possible and then be implemented immediately.

''This is crucial for tourism, given that it isn't realistic to expect any tourist traffic over the next thirty days. We consider a particularly important measure to be the securing of minimum wage funds without which tourism companies will be forced to make unwanted decisions,'' said the director of the association, Veljko Ostojic.

Key measures to defer liquidity are the deferrals of all obligations, they emphasised from HUTU, as they call on all levels of government, from local self-government units through to counties and the companies owned by them, to define such measures as soon as possible. They also expect the Croatian Government to make clear recommendations in this regard.

''Travel companies are actively doing everything possible to retain their employees and prepare for the normalisation of the situation as well as possible for the rest of the tourist year. We regard these measures as the first step to amortise the shock of the disruption of tourist traffic, but in order to stabilise business operations, it'll be necessary to define a second round of measures when the losses start to add up. In this part, we're ready to continue to actively participate in proposing and assisting the Croatian Government in defining the most effective measures,'' HUT said.

''This pandemic has raised global awareness of the importance of agriculture and the food industry. Today, with its own milk production, Croatia meets less than 50 percent of its market needs, so future measures, even in these times of crisis, will have to focus on revitalising the dairy and agri-food sectors in general,'' Dukat said.

Vindija pointed out that they are currently producing at full capacity and are doing so over three shifts.

''The demand for local food products has broken records for this part of the year, and it's our responsibility to ensure a smooth supply and keep the safety of all our workers, subcontractors, partners and customers safe.

The Vindija Group welcomes these measures, as it's crucial at this moment in time to ensure the liquidity of our companies and to maintain jobs, so that production and other economic activities can continue on a regular basis. It's a responsible and timely move that will support business stability and counteract the far-reaching effects of the pandemic crisis,'' Vindija commented.

The measures are also welcomed by the Pivac Group. However, they point out that, given the fact that the market situation is changing day by day, it isn't possible at this time to determine precisely to what extent they will contribute to the planned goals.

"We're in an extraordinary situation and it will take some time to show how it will affect the business in the long run. Once the true proportions of the pandemic are known, it's inevitable that the measures will need to be evaluated and revised and we're convinced that the Croatian Government will take the appropriate steps,'' they said.

Gavrilovic is focused on maintaining its production. "We urge the government, when adopting these measures, to take into account the specificities of particular groups of businesses and to consider additional measures such as maintaining the smooth flow of goods across the European Union so that the food industries can maintain a high level of food product productivity," they say.

They added that during the coronavirus pandemic, exports of strategic food raw materials outside the EU should be restricted in order to maintain stable input prices and protect the food industry within the EU itself. They also say that direct assistance should be provided through co-financing part of the wage bill through taxes and contributions for activities that are directly affected by coronavirus.

From PIK Vrbovec, they also believe that the Croatian Government is doing everything it can to protect the economy.

''We're in constant communication with government representatives and we're doing everything we can to make sure our production and supply chain remains fully operational. PIK meets 40 percent of the Croatian market's needs for red meat and meat products in Croatia, and at times like this, it's extremely important to ensure smooth production and distribution, for which we have the full support of the government. All security measures, which PIK Vrbovec approaches in this situation in a responsible and proactive manner, are continuously checked and aligned with the latest recommendations of the authorised bodies,'' they say.

Woodworkers and the furniture industry have been among the first to feel the slowdown and the onset of the coronavirus crisis, so they were the first to contact the government for help. The package for these producers also included a few of those aimed specifically at them, such as delaying timber payments to the company Croatian forests (Hrvatske sume).

For many, however, it is too early to make estimates until the announced measures, or regulations and ordinances, have been properly developed and published. It is unknown, for example, whether certain measures related to liquidity credits or wages will be able to be used by companies that have already had their accounts blocked, and many smaller producers unfortunately are in this predicament, especially in the processing and production of pellets.

"I hope this is only the first, ''firefighting'' measure and that a more serious package will follow in thirty days, as this crisis will take longer to resolve and the consequences need to be treated so as to ensure not only relief, but also the preservation and the future of this business. From this point of view, the measures that have been adopted are like putting a plaster on a gunshot wound,'' said Bjelina's director, Stjepan Vojinic. Repayments and payment delays, he believes, will not save businesses in the long run.

The Pozgaj Group, an exporter that employs 500 people says that its chairman of the board, Nikola Pozgaj, has submitted to the Ministry of Agriculture a proposal on how to implement the government's measure on extended payment currencies with Croatian forests. It states that it is necessary for this measure to be applied retroactively to all invoices issued as of February the 1st, 2020, as we're entering the choppiest waters of the crisis when invoices will be due in April and May, and their maturity has been delayed by this coronavirus measure.

''We're appealing to Croatian forests to not unilaterally adopt any measures that would conflict with the measures of the government,'' stated Pozgaj.

Boris Vukusic, president of the Association of Small and Medium-Sized Shipbuilding at the Croatian Chamber of Commerce (HGK), welcomes the coronavirus measures, but points out that the sector is particularly affected by the fact that it procures 90 percent of its raw material from imports, and the temporary shutdown of operations calls into question deadlines for the completion of construction, while nautical fair cancellations are also happening, resulting in the absence of new contracts.

''All this, and with the help of the measures, will certainly help many shipbuilders in an uncertain situation,'' stated Vukusic.

''It's high time for the state to decide to switch to paying VAT on the realisation of the payment of bills and not upon actually issuing them, which is, even without a crisis, an absurd situation into which Croatian businessmen are put," Vukusic pointed out.

Large construction sites are currently functioning and all players in the construction sector are hoping for it to simply stay that way. If investment cycles continue, then Croatian construction companies won't question the same or a similar level of planned revenues. This would mean that the new government measures aren't entirely crucial for them, but the whole sector is still worried about the question of whether or not construction sites will need to be closed, or whether or not it will be possible to organise work on construction sites depending on the conditions of future quarantines.

"When we investigated the situation in Italy last week, it wasn't clear whether or not they were closing construction sites at the same time as when shopping centres and hospitality facilities ceased to operate. Formally, it appears that construction sites weren't listed anywhere in Italy for closure, but honestly, they appear to have made some reallocation of jobs in favour of locations that aren't being put under strong measures,'' says a source who didn't want to be named.

''We're working normally,'' claims the CEO of the Krizevci-based construction company Radnik, Mirko Habijanec, president of the HUP Construction Association.

He stated that the same is the case with other construction companies, and he considers the Croatian Government's coronavirus measures to be commendable because they will help a lot in mitigating the evident damage that occurs in other industries due to disruption of work processes. However, Habijanec doesn't agree with the growing number of appeals for the introduction of a measure for the write-off of overdue payments to the state, for example, write-offs of contributions for pension and health insurance for employees whose employers are practically earning only 20 percent of their planned income.

"The write-offs don't lead us anywhere, but there's justification for introducing partial subsidies for direct damage incurred - for example, if the workers were stuck at home and couldn't fulfill their obligations, in which case employers should be compensated for a certain amount," said Habijanec.

He added that Radnik procured some of its strategic materials by paying for part of its deliveries in advance, which maintained continuity and prevented a deadlock.

"However, the possible problems for the builders in the upcoming period due to the supply of materials can't be ruled out, as they come mainly from imports. The coronavirus crisis has shown how much we depend on the external market, so the best government measures would be those that have yet to be brought in to strengthen and even revive those industries we once had, an example being the steelworks,'' he noted.

Gordana Vrdoljak, a member of the board of directors of the large Slavonian transport and logistics company, Ricardo from Darda, said that the company welcomed the government's coronavirus crisis measures and thought that they would alleviate this crisis and help to secure current liquidity and maintain jobs. Accordingly, the Ricardo administration has prepared a plan to secure funds for the payment of salaries for the next three months.

Croatia's largest shipping company, Jadrolinija, pointed out that given the uncertain economic situation caused by the coronavirus epidemic, any assistance and support from the state to the economy is certainly welcome.

"At the moment, we can't predict to what extent the drop in revenue from passenger and vehicle traffic could be, given the unknown duration of this situation. We believe and hope that the conscientious behaviour of all of us, this epidemic will be over as soon as possible and we'll continue with our successful business," said Jadrolinija Rijeka.

Croatia Airlines has been taking all preventative measures since the onset of the coronavirus crisis to ensure the basic functioning of its business processes in these worrying circumstances, including adjustments in restricted movement and assembly conditions, the national airline said.

''On January the 23rd, the crisis management readiness level was raised, and on March the 10th, the crisis headquarters of the company was activated. Since March the 10th, a total of 410 flights have flown and nearly 19,000 passengers have been transported.

So, with these extraordinary circumstances, the company strives to carry out its planned business activities as much as possible, in accordance with the current circumstances, while sharing the fate of the entire aviation industry, which suffers daily damage caused by the negative effects of the global coronavirus pandemic,'' they say from CA, adding that as Croatia's national air carrier, which strongly supports Croatian tourism and the entire Croatian economy, it supports all previous measures adopted by the government, as well as any possible future measures to assist the Croatian economy in order to overcome the damage caused by the coronavirus pandemic.

Croatian motorways (Hrvatske ceste) is ultimately a public company and its primary public interest is more than profit. They have also become involved in helping their customers. Thus, HAC, as part of its assistance to the economy, will implement a number of its own measures, which are also part of the overall measures introduced by the Croatian Government.

The temporary suspensions of concurrent services on Croatian motorways and fees for extraordinary transport licenses shall be suspended until the 1st of June, 2020, which is particularly important because of convoys currently operating international goods transport across the country.

In addition to this, HAC also issued a temporary measure on March the 13th, 2020 for users who don't have an ENC device and made available 3000 devices at a discount of 40 percent, at a price of 73 kuna instead of the previous 122 kuna.

This article was originally written by Marija Brnic, Darko Bicak, Marija Crnjak, Suzana Varosanec and Marta Duic

Make sure to follow our dedicated section for more on coronavirus in Croatia.

It is estimated that the Croatian Government will need to spend a massive five billion kuna to keep the proverbial ship afloat as coronavirus gives the domestic economy a beating.

As Poslovni Dnevnik writes on the 19th of March, 2020, businesses and companies that want or need Croatian Government assistance of 3,250 kuna per employee will have to meet a number of criteria and will only receive their first payments in April.

The Ministry of Labour has adopted the criteria and requests will be submitted from Monday onwards, with payments being made by April the 15th, 2020, at the absolute latest. As noted above, it is estimated that the state will need to spend as much as 5 billion kuna. 24sata exclusively learned about the criteria will need to be met in order to receive this particular payment from the state.

For employers who are in trouble owing to the outbreak, especially those who have had to close down their businesses and companies, this may be a long and arduous waiting game. It's worth recalling the fact that the catering and hospitality industry is completely locked down except for those who supply food via delivery. Gyms, hairdressers and all other service activities other than those which deal with the sale of the basic necessities of life, such as food, medicine and hygiene, are all closed.

Everyone who has had their company ''imprisoned'' by the decision of the Civil Protection Staff is entitled to financial support from the Croatian Government.

Those who receive support will have to keep hold of the employee for whom they're applying for at least a month longer. Therefore, if a company has received support of 3250 kuna for a worker for a maximum of three months, they must not fire that employee for six months. If a company dismisses a worker during this period, then they should return the grant immediately.

A Croatian employer should pay the rest of the worker's salary for the entire time, too. For example, if a worker has a net salary of 6500 kuna, the employer should provide another 3250 kuna of Croatian Government assistance for which they have applied on top of that sum. Contributions and the various taxes on this wage will not have to be paid by the employer for up to three months, but they will be re-introduced later on and the state doesn't want to write off the need for those payments even though Croatian employers have requested it in significant numbers.

When it comes to those who are not ''detained'' by coronavirus and the state's lockdown decisions, in order to receive assistance, employers will have to prove a fall in their activity due to the pandemic in their application.

One of the conditions for Croatian Government financial support is that their business activity has dropped by 20 percent over the last year, which will require concrete proof and a statement. Difficulties which will be recognised for assistance include a decline in turnover, the cancellation of reservations and events, the cancellation of business contracts and orders, the inability to deliver completed goods and products or raw materials, and inability to order new raw materials and such for the continuation of work.

The employer will also need to indicate the activities he has undertaken in order to preserve employee jobs.

But that's not all. Of course. There is also an employment criterion that needs to be readily met.

Employers who have experienced employee decline from the beginning of March to March the 20th, 2020, are also eligible for support. Furthermore, the criteria is narrowed down by company size. The support will not be given to micro-employers of up to ten workers, if more than 40 percent of those workers have been laid off by March the 20th.

A small company may not lay off more than 20 percent of its workers until March the 20th, a mid-size company may not lay of more than 15 percent of its workers, and a large company must not lat off more than 10 percent of its workers. This doesn't include the normal expiry of contracts, a worker entering into legal retirement or if a worker has been fired for their behaviour.

All this also applies to full-time workers. If they are part-time employees, the criteria for the Croatian Government grants remain the exact same.

Make sure to follow our dedicated business section for more on Croatian companies. Stay up to date with our dedicated section for rolling information in English on coronavirus in Croatia.

The Croatian Ericsson Nikola Tesla is the Croatian affiliate of the Swedish telecommunications equipment manufacturer, Ericsson, which has long since been known across the world for its brand and its high quality.

As Poslovni Dnevnik writes on the 9th of March, 2020, Gordana Kovacevic, President of the Croatian Ericsson Nikola Tesla, emphasised her satisfaction with the newly contracted business which is sure to put a spring in the step of the company over the next few months: ''I'm pleased that our activities on export markets are continuing to showcase a positive trend in 2020 as well,''

The Croatian Ericsson Nikola Tesla has encouragingly signed contracts worth more than 84 million kuna on the export markets of neighbouring Bosnia and Herzegovina, Belarus and Moldova, all of which are European nations outside of the European Union and the European Economic Area (EEA).

The contracts this impressive figure regards cover mobile network extensions, which will mostly be realised throughout 2020, and network maintenance in the forthcoming period.

Network maintenance with Bosnia and Herzegovina's HT Eronet has been contracted for two years, and the other companies with which the Croatian Ericsson Nikola Tesla has contracted jobs with are the Moldovan operator IDC for the virtualisation of their IP multimedia subsystem (IMS), and with BeCloud from Belarus for the extension of the LTE network.

As previously mentioned, Gordana Kovacevic, President of Ericsson Nikola Tesla, made sure to let her satisfaction with the concluded contracts with these three foreign companies be known.

''This further encourages us because it strengthens our position as a major Croatian exporter, and especially in terms of being the largest Croatian exporter of knowledge. In this way, we're making the best contribution to the Croatian economy and to our sustainable development,'' stated a rightfully proud Kovacevic.

Make sure to follow our dedicated business page for much more on Croatian companies, products, services and innovation.

As Poslovni Dnevnik writes on the 3rd of March, 2020, the competition is stronger this year, as companies need to have a minimum growth rate of 38.4 percent to find themselves in this prestigious report, compared to 37.7 percent last year. Croatian companies have, however, found themselves listed once again.

Businesses across the European continent have faced a number of barriers to growth this year, ranging from the uncertainty caused by Brexit trade talks and the risks stemming from the global spread of coronavirus, according to a report from the respected Financial Times.

However, some companies have managed to keep pace with the growth, and the FT 1000 report of the fastest growing companies in Europe shows that innovative and ''nimble'' companies are doing well in keeping up.

The FT 1000 report, compiled by the research firm Statista, showcases companies that achieved the highest annual growth rate between 2015 and 2018. As stated, the competition is indeed significantly stronger this year, as companies need to have a minimum growth rate of 38.4 percent to find themselves in this report, compared to 37.7 percent last year.

OakNorth Bank, a British fintech backed by SoftBank's Vision Fund that specialises in mid-sized lending, has taken Europe's first place this year, with Finland's Wolt taking second place. Interestingly, only 90 of the 1000 companies listed have managed to rank in the last three years at all.

This prestigious list also includes five Croatian companies. Oradian is ranked 113th, Q Agency is ranked 164th, Microblink is ranked 438th, Infinum is ranked 462nd, and TREMAK is ranked 896th.

Despite first place having been taken by the UK and with five Croatian companies present, most of the companies listed on this prestigious European list are from Germany, followed by Italy, then by the United Kingdom and France, and these four countries make up about 70 percent of the total.

As far as cities are concerned, most of the companies are from London, then Paris and Milan, while for the first time companies from Warsaw and Vilnius are among the top ten.

Make sure to follow our dedicated business page for more on Croatian companies, products and services.

As Novac writes on the 2nd of March, 2020, as many as two-thirds of Croatian companies are already experiencing the negative effects of the current coronavirus outbreak in their business operations, and more than 50 percent of them have experienced a fall in turnover, according to a poll by the Croatian Chamber of Commerce (HGK). Travel agencies, accommodation, food preparation and logistics companies are among the hardest hit, and small and medium-sized Croatian companies are feeling more of a negative impact than the larger ones.

''HGK immediately communicated the problems with crossing the border reported to us by transporters from the field to the Civil Protection Headquarters of the Republic of Croatia, and their prompt response saw it resolved in one day. We'll continue to listen to the voices of businessmen and work to make this situation affect their business as little as possible,'' said Luka Burilovic, President of the Croatian Chamber of Commerce, he then urged entrepreneurs and owners of Croatian companies to continue to report any business problems they encounter to HGK.

Most Croatian companies have reported difficulties in contracting new jobs, completing contracted jobs and renewing existing jobs, and there are also various problems with transporting goods, cancelling participation in international fairs, congresses and events, and reduced demand for products and services here at home on the Croatian market.

In addition to all of the above, 75 percent of Croatian companies expect a short-term negative impact owing to the coronavirus epidemic, with 15 percent expecting the virus to have a strong impact on their businesses. More worrying still, as many as 82 percent of Croatian companies expect long-term negative consequences.

The most pessimistic are those Croatian companies whuch are already feeling the dire consequences, again with travel agencies leading the way, as they expect the strongest effects on their long-term business.

As many as 92 percent say they expect strong and medium-term negative effects on their long-term operations, and 62 percent expect that negativity in the short-term. The following are Croatian companies in the business of providing accommodation preparation and serving food (hotels, resorts, camps, other accommodation types, as well as restaurants and cafes), of which 76 percent expect long-term and medium-term negative impacts on business in the short term.

The HGK survey also showed that in wholesale and retail, short-term effects are expected at a level of 38 percent, while 55 percent of Croatian companies operating within that sector expect long-term effects, and there are sectors that don't anticipate strong short-term effects, but do expect problems in the long run. These are primarily mining, quarrying and administrative and support service activities (such as leasing companies), but also those who operate in the education, professional, scientific and technical sectors, as well as those in the real estate, financial, construction, and IT sectors.

Make sure to follow our dedicated business page for more on Croatian companies and the effects of coronavirus in Croatia.

As Poslovni Dnevnik writes on the 22nd of February, 2020, all employees of the Croatian company Kanaan who take out a housing loan at a commercial bank this year will receive a five percent non-refundable subsidy from the company on the amount of the loan raised, there are also awards for best employees, scholarships for their children, and more.

Kanaan, a leading producer of chips in Croatia, whose factory is located in Donji Miholjac very near the border with Hungary, bought 32 laptops back in early February 2020. What makes this praseworthy is the fact that those laptops Kanaan purchased are intended for the children of the company's employees, who are students of primary and secondary schools. The workers got the laptops as a gift from the company, for free. This, however, is only the beginning of the story, according to a report from Telegram.

All Kanaan employees whose children attend universities in Croatia are entitled to 1,500 kuna a month, no matter what they study. If they successfully complete their studies, they don't have to return the scholarship money. Those who have enrolled in a mechanical or electrical engineering college with the intention of finding a job at Kanaan after graduation will receive 3,500 kuna per month.

Kanaan offers its employees the opportunity to continue their education or further training. In the amount of 20,000 kuna a year, the company will pay them the cost of enrollment, tuition and other expenses related to continuing education.

If an employee takes out a housing loan of, for example, 50,000 euros, the company will pay him 2,500 euros.

If a Kanaan worker needs to take out an emergency loan, he can count on his company for up to 15,000 kuna at a four percent interest rate, which is a legal obligation when it comes to borrowing. In the last two years, about thirty Kanaan workers have used this opportunity on various occasions.

Zvonko Popovic, the 100 percent owner of Kanaan, a company that employs 130 people with an average salary of about six thousand kuna a month, finally agreed to talk to Telegram about the benefits he provides to his workers, which for many Croatian employees seem like utopian fairy tales about the perfect company and the dream employer.

Popovic says that he didn't do everything that his workers get to enjoy today in order to brag about it in the media, which is why he was so hesitant to discuss it publicly at all, but because he believes that, given the contribution they have made to the development and successful business of the company, they completely deserve such treatment.

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Organised by the Croatian Chamber of Commerce (HGK), Croatian innovators met with potential Malaysian partners through business forums and individual talks in Kuala Lumpur. Could the distant Malaysian market offer opportunities for Croatian companies?

As Novac writes on the 22nd of February, 2020, Roto kruna (crown), Citus, Sestan-Busch, Priroda lijeci (Nature heals), Dizz Concept and Altpro have presented their products and services. A visit to the Malaysia Technology Expo Innovation Fair and Exhibition was also organised, where the Croatian companies presented themselves in the organisation of the Association of Croatian Innovators and won an impressive four gold medals.

Gold for industrial design and printing was won by 3D Tech, gold for ICT by Citus, gold was also won by the healthcare company Priroda lijeci, while the gold medal for construction went into the hands of Dizz Concept.

''The quality of our innovators is confirmed by numerous international awards, so it isn't surprising that Malaysian investors have shown great interest in their products. We've opened the doors of this market to them by organising visits, and judging by the meetings held, some of them will soon realise concrete cooperation,'' said HGK Industry Sector Director Tajana Kesic-Sapic.

"This is a big market where there is definitely room for Croatian companies with quality and innovative products," said Kesic-Sapic, such as Infobip, who already has an office there and was also featured at the fair.

Among the six Croatian companies as part of the delegation was Dizz Concept, whose director Darko Spiljaric presented potential Malaysian investors with PIA pop-up cuisine intended primarily for small apartments, tourist facilities and offices.

"Our modular concept saves a lot of space and has already received numerous awards. We tailor our products to individual markets, which is why we have six models of PIA cuisines that are made exactly from the inputs of clients from different countries. The differences are drastic, so the kitchens we make, for example, for the Taiwanese market have virtually nothing to do with the ones we do in the US,'' explained Spiljaric, adding that thanks to the good organisation of HGK, they have held many quality meetings and the further development of the situation depends on the technical arrangements of them and any potential partners.

Dizz Concept is among the Croatian companies already operating worldwide, and along with the US and Taiwan, they are present on markets from Hong Kong and Singapore to over a dozen EU countries, all the way to Kenya and Canada. Citus presented a piece of innovation at the fair that represents an entirely new approach to human-machine communication using artificial intelligence and blockchain technology.

"We take the parametres of the man who controls the machine and we create a unique footprint that makes all the data anonymised. That footprint can then access various content and information while fully protecting the privacy of its users,'' explained Brigita Prole of Citus Marketing.

''At this innovation exhibition, we've established contacts with many local entrepreneurs thanks to the excellent preparation of the Croatian Chamber of Commerce and I hope that we'll manage to realise all the agreed deals upon our return home. What matters is that we've come to meetings with companies that know very well what we're doing, with concrete proposals for cooperation. This isn't the first time we've been there, and we can see the growing interest of the Malaysian market and the seriousness of approaching the business. I believe that a lot of good jobs will be done in the near future for the benefit of Croatian companies,'' said Prole.

HGK co-financed the expenses of the member companies by fifty percent. As part of the visit, the delegation was received by the National Chamber of Commerce of Malaysia and the Malaysian Export Agency (MATRADE), where Croatian companies and their innovators held B2B interviews with Malaysian partners.

They also visited the Malaysian Palm Oil Authority (MPOB) and the Proton car factory in Kuala Lumpur. Otherwise, the MTE 2020 is a place where innovators are given visibility and plenty of market opportunities to commercialise their innovation, and it is also a meeting place for business and research organisations to showcase their latest inventions and see what competitors are doing in different industries.

Make sure to follow our dedicated business page for more on Croatian companies.

The continental Croatian city of Bjelovar is fast becoming a shining example of just what can be done with a little willpower and genuine desire for forward momentum, and other Croatian cities are following in its footsteps.

As Novac/Gradonacelnik.hr writes on the 19th of February, 2020, last year, 15,445 new companies were opened in the Republic of Croatia, 1178 more than were opened back in 2018. However, 10,814 enterprises were closed or deleted from court registers, 623 more than one year earlier.

This is evidenced by data from the Ministry of Justice confirming the growth of entrepreneurship in Croatia, which shows that over 43,000 new companies were opened in the last two years and just over 33,000 have been closed.

Although people are still facing a number of draconian administrative hurdles, Croatian entrepreneurs freely admit to feeling somewhat relieved when it comes to doing business. This reaction from a large number of entrepreneurs, who are optimistic for various reasons, from rising revenues to new employment and new investments, is encouraging more and more people to dip their own toes into the waters entrepreneurship.

In addition, with the increasing number of incentives through EU funds, there is also an increase in self-employment incentives from the state. According to the Croatian Employment Service, 8723 unemployed people started their own jobs last year and were paid 446.3 million kuna, almost four times more than back in 2017.

Those who start a more serious business can also find tax help and relief from the city authorities as well as from the state, through exemptions from various benefits that have been abolished in some cities, or through direct and indirect incentives. As always, Novac analysed data on the number of opened companies with a focus on Croatian cities, that is, the offices of the commercial courts where the companies were founded.

Figures say that five out of nine commercial courts have seen an increase in the number of companies opened, while the absolute biggest boom in entrepreneurship is taking place in Bjelovar. In absolute terms, in addition to Zagreb, with 7334 new companies registered, most new companies were founded in Split - numbering 1504.

BJELOVAR

''Every move we make has a thought process behind it and has an aim''

Last year, 654 new companies were registered with the Commercial Court in Bjelovar, which is 273 or 71.65 percent more than a year earlier, and as much as 93.49 percent more than back in 2017, when Dario Hrebak took over the management of the city and started a series of activities and measures to encourage entrepreneurship in this city. These positive trends are even more apparent when comparing the number of open and closed companies in the Bjelovar area - in 2017, 181 more companies were closed/deleted in the Commercial Court there. In 2018, 88 more companies were closed than were opened, only for 2019 to end with as many as 188 more companies opened than closed, which equals positive growth of as much as 313.64 percent and at the same time the highest growth recorded in all of Croatia last year. In those three years, from 2017 to the end of 2019, a total of 369 more companies were opened than closed at Bjelovar's Commercial Court.

One of Hrebak's first measures was the introduction of a tax free model with maximum flexibility and a more proactive approach to investors, especially those in the IT industry. In the past year alone, they have halved the surtax (from 12 percent down to 6 percent), thus freeing citizens and entrepreneurs of about five million kuna a year.

“Everything we've been doing throughout these two and a half years since I became mayor has a meaning, every move is thoughtful and has an ultimate goal - to make Bjelovar a modern, transparent city where the city is a service to the citizens, creating an entrepreneurial atmosphere in which we send a message that our entrepreneurs are our friends, in which your kuna is worth more than anywhere else in Croatia. We want to show that one can succeed if one thinks of the common good rather than the individual good. The real indicators of this kind of work that I expect will be seen in a few years. The point is that we've shown that this outdated model of public resource management can be changed and that its redesign is quite possible,'' Hrebak pointed out.

ZADAR

''Today, we're a city of dynamic and agile entrepreneurship''

After Bjelovar, the largest increase in the number of companies opened was recorded by the commercial courts in Osijek and Zadar, which also mark the biggest positive trend when looking at the ratio of opened and closed companies in the last three years. In 2017, 13 more companies opened in the Zadar area than closed, in 2018, this number rose up to 178, and last year to 331, marking an increase of as much as 24.46 percent when compared to 2017!

Zadar Mayor Branko Dukic pointed out that this is the fourth consecutive year in which all economic indicators in the City of Zadar have been continuously and significantly growing, meaning that today, Zadar is a city of dynamic and agile enterprise. The additional spring in their step the City of Zadar gives provides to its entrepreneurs takes the form of a number of measures, and last year they redecorated and equipped an entrepreneurial incubator, renovated a coworking space, some IT classrooms and conference rooms, a 3D laboratory, photovoltaic power plants, various pieces of IK equipment and software, as well as a lounge bar for users, meeting rooms... A further 22 million kuna in EU funding has been provided for a new specialised incubator for high value-added sectors, which would provide services and support to startups and SMEs engaged in developing innovative products and accessing knowledge and innovation-based entrepreneurship.

Woth the use of EU funds, the City of Zadar, in partnership with the Chamber of Trades and Crafts, created COIN Zadar with 5.1 million kuna. This first instigator of the coworking scene in Zadar has made it much easier to start your own business, especially in the independent activities of various ICT related professions. In cooperation with the University of Zadar, they invested around 320,000 kuna with funds from the Cross-border Cooperation project in the design and fitting-out of the Code Hub space, intended for students, IT entrepreneurs and other target groups.

PAZIN

''SMEs are pulling ahead''

Positive trends are also occurring in the areas of Zagreb and Istria. The Commercial Court in Pazin saw 1193 new businesses opened last year, 38 more than a year earlier, and when compared to 2017, 268 more companies were opened in the Istrian region than were closed. Pazin Mayor Renato Krulcic pointed out that Pazin's local economy has been recording a trend in which the number of entrepreneurs and employees has increased for several years, primarily due to the diligent and dynamic small and medium-sized entrepreneurship and craftsmanship in the area.

''The City of Pazin is seeking to contribute systematically to the positive entrepreneurial climate through the Entrepreneurship Incentive Programme, which aims to support existing entrepreneurs and increase the promotion of entrepreneurship in society.

In addition, last year we opened a new business incubator called PazinUP, which, among all of its facilities, seeks to ensure the improvement of business services and infrastructure for the establishment and expansion of businesses and enable easier access to information and knowledge about high-quality business services,'' emphasised Krulcic.

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As Poslovni Dnevnik/Bernard Ivezic writes on the 12th of February, 2020, Croatia's highly successful Infobip has started the construction of its third campus in Sarajevo, Bosnia and Herzegovina, which, according to initial announcements, will be larger than the one in Vodnjan and will gain on the largest, which is being built in Zagreb. The leading Croatian software company has purchased four building lots covering a total area of ​​4230 square metres at the location of Šip.

The value of the contract is 503,000 BAM, which is approximately HRK 1.9 million. Although the price of construction land in Bosnia and Herzegovina is lower than it is in Croatia, the plans Infobip has in the capital of the neighbouring country are no less ambitious than those in Croatia. The Sarajevo campus will cover an area of ​​8500 square metres. Currently, the company employs more than 160 professionals in this city, and with this investment, it will be able to offer jobs to more than 500 people in one place.

According to these indicators, it is the largest IT investment in Bosnia and Herzegovina in decades. Infobip has already begun the process of choosing an architectural solution for the new campus. It is said to have been opened to some of the best regional players and should be done within the next two months. Although it is unknown how much the total investment in Sarajevo will be, for comparison, the new campus in Zagreb is reportedly worth an investment totalling HRK 120 million.

The expansion in Sarajevo is part of Infobip's growing regional positioning, strengthening the base in preparation for the New York Stock Exchange in the next few years, in line with announcements made by Silvio Kutic, co-founder and CEO.

According to Poslovni Dnevnik, as part of the reorganisation, Infobip has decided to transform its campus in Vodnjan into its global headquarters, a new campus in Zagreb into a business headquarters for Europe, while the campus in Bosnia and Herzegovina will become the headquarters for operations in the Middle East and North Africa, the so-called MENA region. Dino Ibrahimovic, director of the MENA region at Infobip, says that in Bosnia and Herzegovina, the company's plans are to significantly increase its number of employees in line with the company's plan to create 1,000 new jobs globally in 2020.

He stresses that the Sarajevo campus, with more than 500 employees, will become one of Infobip's key development centres and a strategic hub for the MENA region.

"Because our current business premises aren't big enough for us, building a modern IT campus for all employees in the wider Sarajevo area is a logical step in view of the projected growth of our office," says Ibrahimovic. The first Infobip campus "Pangea", the one in Vodnjan, whose opening three years ago was attended by Prime Minister Andrej Plenkovic, covers a total of 17,000 square metres, and in its available office space, it has a capacity of 5600 square metres intended for two hundred employees.

The Alpha Centauri campus in Zagreb, which is being built rapidly in St. Klara, and which will be the largest, will cover 20,000 square metres and will have as much as 11,900 square feet of office space on seven floors.

According to Infobip, construction is progressing as planned. The ground floor is finished and the second floor is currently being completed. The Alpha Centauri campus is expected to receive its first tenants by the end of this year.

"There are no further plans for the construction of new campuses in the region, but there are plans to increase the capacity of all our offices in Croatia - in Vodnjan, Zagreb, Rijeka and Split," Infobip explained.

Commenting on the construction of a campus in Bosnia and Herzegovina, Dino Ibrahimovic said that the Sarajevo municipality of Centar showed the highest level of willingness of all levels of government in the country to support IT companies.

"Our long-term goal is to retain young talent in Bosnia and Herzegovina and we're aware that a job alone is not enough for that purpose, but we as a company will provide a secure workplace, certain benefits and working conditions that are comparable to the world's largest companies," says Ibrahimovic.

Globally, Infobip is undergoing a major expansion, aiming to double its headcount by 2022 to 4,500, with the highest growth expected in the entire region. The company has so far opened 67 offices on all continents except Antarctica. In Bosnia and Herzegovina, besides Sarajevo, a brand new Infobip office has recently been opened in Tuzla, employing 25 professionals, and it plans to increase that figure to 80.

Nedzad Ajnadzic, Mayor of the Sarajevo Centar Municipality, expressed his satisfaction that they had completed their administrative work, followed by the issuance of a planning and construction permit.

"I have high expectations of this project and my opinion is that the IT Park is one of the largest development projects for this local community and beyond," says Ajnadzic. He added that all engineers of the future IT park will also be offered the opportunity by his municipality to resolve housing issues through the purchase of an apartment with an interest free loan.

Make sure to follow our dedicated business and Made in Croatia pages for more information on Infobip and much more.

As Jozo Vrdoljak/Privredni.hr/Novac writes on the 29th of January, 2020, the Croatian company AD Plastik Group has contracted new deals for the Russian and European markets worth an enormous 31.8 million euros in total.

Additional jobs for the Renault-Nissan-AvtoVAZ alliance worth 22.4 million euros have been contracted over on the Russian market, and cooperation with the PSA Group is continuing on the European market, with which new jobs with a total value of 9.4 million euros have been contracted.

The AD Plastik Togliatti plant in Russia will produce shock absorbers and exterior pillar trims for the new Lada Grant model and lower bumper grilles for the new Renault Logan iSandero models. These are additional jobs for new Alliance vehicle models that were initially contracted back in 2019.

The start of batch production of these vehicle models is planned for the second and third quarters of 2021, with an estimated duration of eight years. 15.2 million euros worth of new deals have been agreed for the Lada Grant vehicle and 7.2 million euros for the new Renault models, which is excellent news for this large Croatian company.

''The new jobs contracted with the PSA Group are a confirmation of the very successful status of the AD Plastik Group in the panel of suppliers of this reputable automaker. The AD Plastik Group factory in Mladenovac has contracted the production of glass guides for Opel Astra, the best-selling Opel vehicle, with a total value of 5.8 million euros. The start of batch production is planned for the fourth quarter of 2021, with an estimated project duration of eight years,'' the highly successful Croatian company AD Plastik stated.

The Solin-based factory will produce exterior parts, namely the upper grilles, which will be installed on the Fiat Ducato and Opel Vivaro, vehicles from the FCA and PSA group. This Croatian company will be producing parts for these commercial vehicles for the first time, with a contract value of 2.2 million euros in total.

The start of batch production is also planned for the fourth quarter of 2021 with a project duration of two years.

Air extractors for the Peugeot 308 and Opel Astra will also be produced at the Solin factory, with a project value of 1.4 million euros. The commencement of the batch production of this project is planned for the first quarter of 2021, with an expected duration of seven years.

Make sure to follow our dedicated business and Made in Croatia pages for more information on this Croatian company and much more.