December the 1st, 2020 - The ongoing coronavirus pandemic might have thrown a proverbial spanner or two in the works for many a Croatian company, with some having to shelve their plans or cancel them entirely as the economic woes as a result of the pandemic took hold, but for entrepreneur Ivan Mrvos, the owner and founder of the incredible Croatian company Include, not everything has been quite so bleak.

As Poslovni Dnevnik writes, Include, which is owned by Ivan Mrvos and is a leading manufacturer of smart solutions for cities, has introduced a new generation of innovative Steora smart benches, accompanied by a brand new line of Terra waste bins to mark Include's previously announced entry into the smart waste management market.

Ivan Mrvos' company's new products were presented during a special live stream event at the company's headquarters in Solin, and the executive director, Ivan Mrvos, said that the main goal of his company now was to create an advanced smart bench that can compete very well with ordinary benches which still very much take precedent.

The talented entrepreneur Ivan Mrvos also introduced the previously mentioned Terra waste bins, an innovative solution from this Croatian company which, as he explained during the live stream, can hold up to three times more waste than conventional bins can, and that smaller cities can save up to two million euros a year thanks to a compression system which has been entirely developed by his talented and forward-thinking team at Include.

As they point out from Include, all elements of these new products are the result of the company's own research and development, and the end result is, much like with each of their products so far, one of a lot of care, knowledge and time.

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As Marta Duic/Poslovni Dnevnik writes on the 25th of August, 2020, at the end of July, Zenja Moskaljov, the owner of the Zagreb pet shop Dog & Style, set up a vending machine in front of his store with a specific range of products for pets.

The idea developed, he revealed, at a business lunch with a friend and business partner, franchise mentor Andrija Colak, who connected him with the company Automatik servis from Buzet, which sold him a vending machine.

In this particular vending machine you can find basic products for pets - sweets, toys, daily meals, and dog waste bags that customers need on a daily basis.

''We’ve carefully studied which products sell the most when customers go for a walk with their dog or hang out for coffee at nearby cafes where pets can have fun with their treats and while our store is closed. I never dreamed that customers would like it so much. They pass, stop and take pictures, and social media was burning with positive comments after the announcement. I'm proud that this is the first such machine in Zagreb, Croatia, and in the region,'' said Zenja Moskaljov.

It's worth mentioning that the Dog & Style store offers more than a thousand items, which is the result of carefully listening to the market during seven years of operation, and today it has five employees. After five years of business, they moved to a new location in Mainz Street, where for two years now they have been offering food and equipment for dogs and cats, dog and cat grooming services and a veterinary pharmacy.

They earn additional income by holding courses for new dog groomers. Zenja Moskaljov says that Iva Antolic, his partner and associate, is responsible for the design of the complete Dog & Style brand. In addition to vending machines, their last major investment was franchising their business.

"Andrija Colak as a consultant is responsible for setting up a complete franchise project that lasted almost a year. The project of offering our own franchise has seen the light of day this summer and I can say that there are a lot of interested clients, and for several of them we're already looking at locations in Zagreb. Through the franchise investment, we hope to significantly expand that number in the near future, both in Zagreb and in the whole of Croatia, and in a five-year cycle, within the immediate region and the EU,'' Zenja Moskaljov noted.

The owner of the pet shop noted that, in every pet store, dog and cat food makes up 50 percent of the sales range, followed by sweets and equipment, then bathing and haircut services, and finally veterinary products.

"Fortunately, the company's activities have enabled us to work during the coronavirus crisis, and we achieved a record month in sales in March. The company's revenues are still growing from month to month, our revenue has increased by 60 percent when compared to 2019,'' concluded Zenja Moskaljov.

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Croatian entrepreneurship is something that is incredibly difficult for many to wrap their heads around, despite the fact that the country continually produces some incredible minds across all fields. While Croatia does boast some wildly successful ''home grown'' entrepreneurs such as the one and only Mate Rimac, the state and its draconian laws, as well as tiresome procedures and shabby administrative bodies put many a would-be entrepreneur off.

As Novac writes on the 26th of June, 2020, in order to encourage residents of Croatia to enter entrepreneurial waters, encourage Croatian entrepreneurship in general and also give existing entrepreneurs the proper tools to further develop their respective businesses, the Croatian Chamber of Commerce (HGK) has become a partner in a praiseworthy project called Entrepreneurship Promotion, which launched an initiative entitled ''Inoviraj-Profitiraj/Innovate-Make a Profit'' which is held through free online Info days and brings together entrepreneurs and innovators from across five Croatian regions.

The last Info Day is scheduled for Thursday, July the 2nd, starting at 11:00.

Mislav Malenica, a successful innovator and president of the Croatian Association for Artificial Intelligence (CroAI), who developed the popular virtual assistant Andrija with his team, will tell his inspiring story. Through the WhatsApp platform, this chatbot helps citizens, healthcare professionals, doctors and epidemiologists control the development of the ongoing coronavirus pandemic in Croatia. Everyone who applies for the workshop will be able to ask Malenica questions not only about Andrija but also how he managed to realise his ideas and develop his business here in Croatia.

Emir Dzanic, one of the most well respected Croatian experts in the field of innovation, will also take part in the fifth Info Day, giving the attendees some effective tools for the easier realisation of their ideas, and as such encourage Croatian entrepreneurship.

His aim is to show people that as they work out their idea, they need to think about its commercialisation because the best recipe for failure is to make an innovative product, and only then think about how to actually sell it. Only when an idea comes to life in material form, either as a product or a service, and reaches customers, can anyone say that they have created some new value or innovation.

The info day will be concluded by consultants from the project Jednako Razvoj/Equal Development, one of the leading consulting companies for EU funds, who will talk about the latest sources of financing for business ideas.

Participation in these online workshops is free of charge, and you can register via the official website, so you can get a link to the workshop. The project is co-financed by the European Union from the European Regional Development Fund.

For more on Croatian entrepreneurship, follow our business page.

As Poslovni Dnevnik/Bernard Ivezic writes on the 18th of June, 2020, Mate Rimac recently opened a new factory in Zagorje, more precisely in Veliko Trgovišće, which is intended exclusively for the serial production of his electric vehicles. The new factory should enable Rimac Automobili to start delivering finished C_Two vehicles to customers as early as next year.

Noting that during this year, Rimac Automobili plans to publish the final design and name of the vehicle, given that the C_Two is still being treated as a prototype, and not the final, homologated vehicle, or a finished product. Initially, the first deliveries to customers were supposed to be made by the end of this year, but this was slowed down by the coronavirus crisis and the quarantine.

The brand new Zagorje plant covers 5036 square metres in total and represents a 60 percent increase in the Rimac Automobili's overall production capacities. Namely, in Sveta Nedjelja, where its headquarters are located, the company has a production plant, a centre for R&D development and other departments on an area covering ​​8345 square metres.

The plant in Veliko Trgovišće, as has since been learned, is a continuation of the expansion of the company's business and won't replace the existing plant in Sveta Nedjelja near Zagreb. Rimac Automobili isn't giving up on the project it announced last year near the Kerestinec castle, on an area covering ​​250,000 square metres. Mate Rimac then pointed out that he wanted to have the company's future headquarters, R&D centre, factory, test site and campus with various facilities located there in Kerestinec.

State Property Minister Goran Maric and Sveta Nedelja Mayor Dario Zurovec have already prepared the ground for the campus by signing a 6.5m-kuna state land donation agreement. Mate Rimac says they're sticking to the plans.

''We're accelerating the production of prototypes, so this new investment is necessary for us to be able to deliver vehicles to our customers next year. We're still working on the campus project, our long-term location, but given the size and timeline of that project, it's imperative that we have the appropriate facilities in place by then,'' Mate Rimac explained.

In the new plant, Rimac Automobili will produce thirteen C_Two prototypes by the end of this year, which will be used for testing and homologation. Most of these vehicles will be destroyed in crash tests and other tests.

So far, the company has produced a total of four. Rimac Automobili plans to make a global homologation for the C_Two model so that it can be sold worldwide in the final version in the same way as the vehicles of all other brands have been. All of this includes the production of ten vehicles in pre-series production, which is also something they intend to realise by the end of 2020.

The company explained that full homologation, without any shortcuts, is a process that takes three to four years from the first concept to full prototypes and finally to actual vehicles out on the road. Rimac Automobili is sticking to those deadlines, and the first C_Two was presented at the Geneva Motor Show back in 2018.

"The only way to accomplish all of this is through rigorous crash tests that require different prototypes, each with a specific purpose, so, for example - some prototypes from the plant in Veliko Trgovišće will go directly to crash testing, and others will be used for other types of tests,'' noted Rimac.

In order to be able to produce the required number of vehicles by the end of the year, and thus to test future serial production, the company opened this new plant in Zagorje. Its initial production capacity is four vehicles per month. In addition, they have shortened the production process to five weeks and it is now twice as fast. The new plant consists of five main zones.

''We’ve worked hard to bring the C_Two to the level it's at now and I want our customers around the world to feel the enjoyment of 1914 horsepower in a fully electric hyper vehicle,'' said Rimac, adding that he is proud that they achieved all this in the die conditions created by the ongoing coronavirus crisis.

"We didn't reduce the number of employees or their salaries," said Rimac. He noted that investors are still following their moves. Last September, Porsche increased its stake from 10 to 15.5 percent. The first investors in Rimac Automobili appeared six years ago. Then Colombian Frank Kanayet Yepes, Chinese Sinocop Resources and the owner of Forbes invested 10 million US dollars in the first investment round.

It was the first investment in a technology startup based here in Croatia. A year later, Rimac Automobili won its first major development deal. Three years ago, the Chinese Camel Group invested a massive 30 million euros in Rimac Automobili. A couple of years ago, Mate Rimac presented the amazing C_Two, agreed with Camel to build a factory in China worth one billion kuna, won a 600 million kuna R&D deal and received an investment of 18.7 million euros from Porsche in exchange for a 10 percent stake in the company.

After that, Hyundai and KIa invested huge amounts. The company's financial indicators for 2019 are not yet known. According to Poslovna Hrvatska (Business Croatia) in 2018, Rimac Automobili had revenues of 72.7 million kuna, a loss of 19.9 million kuna and investments in fixed assets of as much as 174.6 million kuna.

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As Darko Bicak/Poslovni Dnevnik writes on the 29th of May, 2020, measures to help businesses and entrepreneurs in Croatia should be extended, AmCham warns as it discusses the Croatian economy.

The American Chamber of Commerce in Croatia (AmCham) welcomes the recent Action Plan to reduce non-tax and parafiscal levies to help the Croatian economy recover and get back on its feet during the coronavirus crisis.

In a set of recommendations to help the Croatian economy, AmCham has, among other things, announced measures to further reduce and eliminate parafiscal levies and indirect taxes. As Andrea Doko Jelusic, Executive Director of AmCham Croatia, points out, entrepreneurs in the Republic of Croatia pay around 440 parafiscal fees, which makes doing business significantly more difficult and trying for them.

"Certain levies have a general purpose, so their abolition would create a budget deficit that should be financed from other sources, and there are also a number of levies that aren't financially burdensome, but the purpose of their actual payment is non-transparent.

A large number of indirect taxes and levies also represent an administrative burden in terms of monitoring the obligations of the payments themselves and procedures which are too complex. Entrepreneurs point out certain things as the biggest problems: an excessive number of parafiscal charges, non-transparency, financial burdens, the complexity of these procedures and the administratively demanding monitoring of payment obligations.

We believe that it is necessary to focus on further reducing the total number of parafiscal levies and the financial burden they cause,'' explained Doko Jelusic.

Part of the recommendations also refers to the introduction of the possibility of transferring tax losses backwards, then deferral, ie, the exemption from paying income tax advances in 2020, offsetting mutual tax debts and the exemption from VAT payments on donations for earthquakes. They also point to the need to extend the deadline for the implementation of government measures to help the recovery of the already enfeebled Croatian economy.

''Following the end of the extraordinary circumstances caused by the coronavirus pandemic, it's to be expected that it will take some time to restart all of the activities that have been suspended, order raw materials, contact clients and establish a regular work cycle. Therefore, it's necessary to think about extending the measures to help the Croatian economy by three months, and in tourism by twelve months,'' concluded the executive director of AmCham Croatia, which brings together about 250 American, Croatian and other international companies that employ more than 88,000 people in Croatia.

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May 15, 2020 - The topic of Croatian entrepreneurs and their negative public perception in a part of the public is a part of a broader history of the private sector in a transition country. Various economic, psychological, and social aspects are mixed, and partially the influence of ideologically formed stereotypes. However, it seems that the perception created over a long time, through anecdotal evidence and the actions of interest groups, is far from reality. Now, perhaps, the turn of events is such that it will clear up many misconceptions and put more accurate information in the foreground.

Of course, on one side, and a global scale, we are seeing growing inequality and differences between rich and poor, and individuals and countries. Using resources without taking into account their limitations, or the ecosystem and the effects it has on it, has rightfully homogenized various groups of people and turned them into activists. What happens in our country, which has not yet mentally left behind the communist legacy and its bad aspects? Although we nominally live in a capitalist system, socialism still runs through many segments of society. And there, perhaps, we should open the topic of Croatian micro, small and medium-sized entrepreneurs, sole proprietors, and self-employed to ask ourselves: Who are these people?

Someone who watches the newspaper headlines from the side, first associations often take them to a dark period of privatization of state-owned firms and politically connected people who have become rich. They can think of tycoons and their arrogant sons, golden youth, and ruthless teenagers who drive expensive cars and kill people in car accidents. And, of course, they do not bear any consequences due to the power and influence of their parents, which can affect the obviously corrupt Croatian judicial proceedings (we have the lowest level of confidence in the judicial system in the EU).

But who are the REAL ENTREPRENEURS, and who cares about them?

Unions protect their employees in the public sector, corporations through their PR departments and the strength of their brand, somewhat safeguard their employees, but who cares about the image of (small) entrepreneurs? It seems that no one has worked on that for many years and did not think that this is an important social issue?

Here is some analysis data. Let's start with how many of them are there. According to the aggregate data published by Fina each year, more than 98 percent of all Croatian companies are classified as micro and small enterprises. They employ more than 470,000 employees. As he cited in his 2016 article, Davor Huić—In the first five years of the first crisis (2009–2013), small companies revoked 30 thousand job posts (they sent 30,000 people to the labor exchange). The return on capital was not positive in any of the observed years, and in 2010 it was in the red a whopping 4.3 percent. At the same time, the debt index rose from 3.6 to 4.3—on each kuna of equity capital, they have almost four and a half kuna of debt (in "normal" conditions, this ratio should be 1:2). In other words, entrepreneurs during the previous crisis (2009–2013) owed everything they had—their apartments, houses, countries, cars, so that their companies would survive, and to keep their "profitable business" alive—the one that brings them losses. That and many other indicators already then showed that Croatian entrepreneurship was on its knees and in danger of complete collapse—had our bureaucratic caste continued with radical anti-signature policies (perhaps additional charges that arose with the crisis), as it was at that time.

The percentage of the number of closed companies is also significant. Over the past couple of years, there has finally been a slight recovery from the last crisis—as seen from the number of newly employed to this segment—almost 46,000 people, but the situation is far from ideal.
According to the CEPOR report, more than 34% of businesses as a reason for closing say that they cannot be profitable under these conditions, and another 15% are closing for problems with the access to financing.

We can only guess how notable this number will be after the first stage of the current crisis.

The Glas Poduzetnika Association unites more than 10,000 micro, small and medium-sized entrepreneurs and self-employed, sole proprietors, subject to lump-sum taxation, sole proprietors, and OPGs (family farms). We had a good opportunity to gather additional information about who are Croatian entrepreneurs and what state they are in, through surveys that involved thousands of participants. They gave their answers (and not anonymously, but with their first and last names). Here is a summary of some of the results:

In contrast to the imputations of some union representatives that entrepreneurs are riding in expensive cars, our members are uncomfortable admitting that they do have a minimal stock of capital in reserve.

More than 80% of companies have less than 20,000 kn, and almost 60% have less than 5,000 kn. That is directly reflected in the assessment of the survival of their companies in times of crisis or unpredictability when more than 90% of members say that they can withstand a maximum of 3 months (and for 50% of them it's only a month).

Also, about 60% of them live as tenants or pay off loans on the property they live in or live with their parents/in the family property. Only 23% own an official company-owned car, and 57% must use their private vehicle.

Unfortunately, some of them will, if they can't keep their companies alive, consider leaving the country and finding happiness elsewhere (about 20%). It would be interesting to see how many employees from the public sector with secure salaries have left the country or are planning to leave (given that they are reportedly treated very poorly). The situation is generally not very good when they cannot expect support and loans from banks, those in the tourism industry have already reported considerable changes in bookings, and about 80% of them cannot work from home or can only partially.

Another picture that is continually being sent out is that entrepreneurs are using their workers and that they live of unfair exploitation of their work. If we take individual cases, each thesis is easy to prove, but let's look again at some statistics on which we can make a better generalization and conclusions.

About 40% of entrepreneurs in their small businesses employ family members or relatives. A certain number also hire their friends. It is hard to imagine that such social relationships would survive if employees were deceived and exploited.

Only about a quarter of these entrepreneurs is not in debt, and 30% of them are in the average or significant debts. Another 43% of them risked for the business and invested all their personal assets. This is also explained by the data showing that entrepreneurs work the most because they have to fight not to lose everything they have. Only 6% of them work 8 hours per day, which is usual for the public sector and according to the law. The majority of them, 44%, works 10 to 12 hours per day, and an additional 29% except working overtime during the week, they also work weekends. Alarming 14% has to work over 12 h a day.

What position does all this put Croatian entrepreneurs in? They risk everything they have, work a lot, are under constant pressure from the repressive inspection, the Croatian justice system will practically not help them because of their slowness and inefficiency. They are almost stigmatized by part of the public, and if they manage to survive all the administrative and other obstacles set by the state, and finally, if they get into the right business model and stay alive after fighting competition and ultimately succeed, what exactly have they achieved? The companies that do not perish, but continue to do business, get a completely different level of profit—from moderate to medium, depending on the industry. It is clear that the vast majority survive and do not accumulate great wealth with their work (which would be fine and is in Western countries). Instead, they survive and work to replenish the state Treasury. Perhaps the best word for Croatian entrepreneurs would be—workingmen, the real working class, not some caste that is put in opposition to the workers.

In this situation, who would even want to look for work in the private sector and as an entrepreneur? The chances of success are insignificant compared to the risk. Feeding off the state offers safety, comfortable and predictive job, insured for years to come. Because of this, the increasing numbers of surveys showing that young people, instead of wanting to be creative, innovate and create new business ideas thus creating additional value, and thrive in a fierce market struggle, are increasingly choosing and wanting peaceful and safe but often meaningless positions in the state administration, even though they will lose opportunities for personal advancement and growth, are not surprising. Where does this put us as a country that will, despite its good potential (Croatia is, say, no. 37 on the WEF Global Human Capital Report), find it increasingly difficult to compete in the global market, and continue to lag behind all relevant factors (Doing Business Report, WEF Global Competitiveness Report), is not difficult to predict. Borrowing is not indefinitely possible, and the public sector is financed from a budget that is filled mainly by the private sector. When it collapses, the only question is which of the black scenarios awaits us. As told in an interview with the Financial Times, a member of the wealthiest Swedish family—Jacob Wallenberg, who himself is "deathly" afraid of the consequences for society if the unemployment rate gets close to 30% (and employees of the private sector are out of work in a swoop), and the economy itself will contract accordingly. He believes that in this case, "There will be no recovery. There will be social unrest. There will be violence. There will be socioeconomic consequences—dramatic unemployment."—Why? Because the private sector will collapse. It is crucial to think carefully before one starts throwing dirt on entrepreneurs, and short-sightedly protect only their own short-term interests.

Aco Momcilovic
UGP

For the Croatian version of the article, click here.

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 April 4, 2020 - Members of the Glas Poduzetnika (Voice of Entrepreneurs) Association give their verdict on Minister of Economy Darko Horvat after the latest economic measures were announced.

Last week’s poll about public perception of minister Horvat, made after the first set of inadequate and inefficient measures, has shown worrying results and perception in the private sector. Following that, there were rumours of relieving the minister of his position. The reaction was pretty quick, and new, much more thought out measures were taken, similar to what the GP Initiative suggested. After that, we repeated the public poll about the public perception of the work of minister Horvat and we got noticeable changes in a positive direction:

The number of people who consider that minister Horvat doesn’t do a good job (and that he should think about resigning) has gone down by 22% percent. An additional 21.8% begin to perceive his actions in a more positive light (mostly because of the Glas Poduzetnika Initiative) and thinks he is improving. Although they are few, we are finally beginning to see some people who think he is doing a good job - 1% to be precise.

Although the result as a whole is far from good or acceptable, the encouraging fact is that the entrepreneurs are ready to change their perceptions based on incoming new information. They are not tied by ideology, furthermore, they recognize results and quality decision making. Differences measured in tens of percentage points suggest that, with a few good decisions and good and transparent communication, perception and even popularity can be changed easily and for the better, as demonstrated by minister Beroš's situation.

The association Glas Poduzetnika was formally formed today. You can learn more about that, as well as its structure and aims in this press release. 

For the latest on the coronavirus crisis, follow the dedicated TCN section. 

Zagreb, April 4, 2020 - At the request of GLAS PODUZETNIKA Initiative members, the Association GLAS PODUZETNIKA has been founded today. It will as the formal representative of its members - entrepreneurs, artisans, self-employed and private sector employees - continue the active fight not only for the rights of its members but for a better and more modern Croatia.

GLAS PODUZETNIKA Initiative was started spontaneously a little over 2 weeks ago by citizens, all small entrepreneurs after the Government announced its first economic measure package. It was deemed inadequate by the Initiative founders. The initiative has, in less than 15 days, gathered over 100,000 entrepreneurs, artisans, self-employed and employees in the private sector, and has drawn huge media attention with its uncompromising demands and actions. Many consider the GLAS PODUZETNIKA Initiative has had a considerable impact on the announced second package of economic measures.

Big activity and engagement in the ground have brought about a big number of suggestions and questions about the next step that the Initiative plans to take. Some have also stated that the Initiative is not a formal organization and that it does not have any legal representative. The next step proposed by the community is to found GLAS PODUZETNIKA as a real association so that the Initiative can legally represent its members. In the poll carried out by the Initiative, 96% of participants stated they would join the formal GLAS PODUZETNIKA Association.

Considering also the public opinion and opinion of its members, Initiative founders and a greater circle of volunteers who were included in the activities of the Initiative basically from the start have founded the Association GLAS PODUZETNIKA today. All documents necessary for the founding were given to the legal bodies for the registration.

At the founding Assembly official bodies of the association were named for a two-year mandate. The president of the Association is Hrvoje Bujas, the executive director is Dražen Oreščanin, two of them are also legal representatives of the Association. The executive board consists of 7 members, Andrej Šooš Maceljski, Berislav Marszalek, Bojan Bajgorić Šantić, Bruno Samarđić, Ivana Matić, Vedran Jakominić i Vuk Vuković. The Supervisory board has 3 members, Aco Momčilović, Gordana Fabijanić and Valerija Knežević. All founders and bodies of GLAS PODUZETNIKA Association are micro, small and medium business owners and they are a representative sample of its future members.

“After a lot of work that was done in the last two weeks, and after imposing ourselves as a relevant player and cooperator in this economic crisis, the formalization of our Initiative was needed.” Regarding the founding of the Association, Hrvoje Bujas stated “We have insisted from the start that politics doesn’t interest us. We are only interested in the wellbeing of not only all of GLAS PODUZETNIKA members but also the Croatian economy and society as a whole. GLAS PODUZETNIKA is not just the voice of the entrepreneurs, but also our employees, with whom we have shared both good and bad for years, as we are doing so in this crisis as well by insisting on enforcing the measures that would help us save their jobs.”

“This is only the beginning of our common fight, a lot of work is still ahead of us. We need to ensure the fast, efficient and unrestricted execution of the measures. There are still a lot of open questions that need answers. We need to ensure that all local jurisdictions give appropriate support to local entrepreneurs by writing off utility charges and rent for offices and public spaces. The Government still has a huge task of agreeing with the banks and leasing houses to freeze the loans and leasings for 12 months, so that the economy can breathe a little when all of this starts rolling again.” Dražen Oreščanin added.

The Association starts with its work right now, and the members can be all legal - businesses, associations and artisans, and all physical persons, firstly entrepreneurs and employees in small and medium businesses. All current members of the Initiative and all sympathizers can apply for the Association starting today through the application form available on:

• Association’s website https://glaspoduzetnika.hr/
• Facebook grouphttps://www.facebook.com/groups/glaspoduzetnika/

At the founding Assembly was decided that the membership in the Association GLAS PODUZETNIKA will be free, and all its activities the Association will finance through donations. A decision was also made to open an additional account for donations intended for medical workers and for medical and sanitary equipment needed to fight coronavirus.

Structure and wishes of GLAS PODUZETNIKA Initiative members

Considering the neverending growth of GLAS PODUZETNIKA Initiative, that at the moment of writing this text numbers more than 43,000 members in its Facebook group and over 5,600 businesses with over 55,000 employees and permanent associates, a question was raised about giving more structure to the Initiative’s membership system. We consider that a piece of important information for the public considering the perception of entrepreneurs in some segments of our society. We raised a question, which category do our members belong to. The gathered results show that the biggest part of the Initiative’s members belongs to the group of micro-entrepreneurs (less than 10 employees) - 46% to be precise. The next category, numbering over 31%, are artisans. Small entrepreneurs (up to 50 employees) comprise little over 9% of the Initiative, and the next 5% are self-employed. It doesn’t surprise us that more than 4% of members are actually sympathizers of the Initiative or employees in the private sector. There are about 1% of entrepreneurs that employ more than 250 people.

The numbers show that over 83% of them are individuals or very small (micro) businesses, that think they don’t have anyone to systematically fight for their interests.

Big activity and engagement in the group have brought about a great number of proposals and questions about the next steps that the GLAS PODUZETNIKA Initiative has planned. The next step proposed by the community is to found GLAS PODUZETNIKA as a real association, that way the Initiative would get a legal form and the ability to represent its members. To ensure the wishes of the Initiative members, we asked them if they are planning to join the Association GLAS PODUZETNIKA, if and when it is founded. We got an almost unanimous response - over 96% of the Initiative members say they would join the Association, less than 1% think that the association isn’t necessary. 1% goes to those who don’t know yet or they wouldn’t join at all, respectively. From those results, it is obvious that there is a need for this kind of association in Croatia. We think that this would help tens of thousands of people in the private sector, to ease the way they conduct business and to save a huge number of jobs in the ensuing crisis. It would also help micro and small entrepreneurs in the future.

Read more - Pulse of Glas Poduzetnika: Perception of Minister Horvat Changes after New Measures

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They thought they knew how to run a country, and they couldn't even run their own companies... Slobodna Dalmacija has compiled an interesting list of Croatian politicians who failed as entrepreneurs, with some exceptions...

As Poslovni Dnevnik writes on the 12th of February, 2020, Nikica Valentic is considered one of the most successful Croatian prime ministers, as Anita Belak Krile writes for Slobodna Dalmacija.

He led the Croatian Government through some difficult times, inflation was halted during his mandate and the kuna was introduced, the Croatian Armed Forces was put into action for liberation operations, and 650,000 refugees and displaced persons were taken care of.

But when he stepped into private waters and started his own business, things took a dramatic turn for the worse. His business empire went almost completely down the proverbial toilet.

According to a report this week, the bankruptcy trustee of Nive Engineering (a company founded by Niva d.d. and headed by former Prime Minister Nikica Valentic) was handed over to the Zagreb Commercial Court, 99 properties have been sold so far, as well as failed companies from which creditors claimed as much as 130 million kuna.

The selling of real estate via the courts just a continuation of the collapse of that particular business empire that has been going on for years.

When he retired from politics at the end of 1995, Valentic started a business importing Malaysian Proton cars and an insurance company, but this soon failed. He then moved to real estate, building attractive residential complexes in desirable locations in Zagreb. For a while, business was going well, but with the arrival of the economic crisis, this also started to go downhill.

Year after year, the company recorded large losses, and accounts were constantly being blocked.

Valentic is far from the only high-ranking former Croatian politician who was much better off managing state affairs than his own private ones. Two more ex Croatian politicians, former Minister of the Economy, Goranko Fuzulic, and Radimir Cacic, the first deputy prime minister and former leader of HNS, today the head of the Reformists, also did poorly on the market.

If you can remembe "Magma", "Turbo Limac" and "Turbo Sport", then you'll know what this means. There is no Croatian home where there were no toys or baby clothes from Turbo Limac.

Prior to entering politics, Goranko Fizulic had an enviable entrepreneurial experience. With his wife, Biserka, he created "Magma" d.d. which included the Turbo limac children's empire and then the Turbo sport store. He has been an advocate for brands such as Esprit and Mexx, and in March 2003, Magma International was established over in Hong Kong.

Its revenues exceeded an impressive 1 billion kuna. Then in 2008, it all went downhill with the recession. He went bankrupt and endured two bouts of serious illness. Fizulic was among several former Croatian politicians to be hit badly by the economic crisis, with share prices plummeting from 315 kuna to just 1.2 kuna.

''I went through an extremely difficult period of my life. In addition to the two illnesses, I also experienced business collapse. But in every trouble, a new opportunity must be sought. Now I'm starting over,'' Fizulic said in an interview with Globus.

He admitted that he even considered suicide.

''I didn't want to inflict pain and suffering on my family. I managed to pull myself out of that without medication and doctors,'' he said.

After trying to find his place in the 3D printing industry, he launched the online service “LikeFigures”, but today he is better known to the public as a Telegram columnist.

Radimir Cacic was the construction minister and the first deputy prime minister at a time when motorways were being built across Croatia. Before joining the government and as such a list of Croatian politicians who also had their fingers in the business world, he was a successful entrepreneur, but those times are now long gone.

The backbone of the former Cacic construction and tourism business empire, the company "Coning" d.d., has been in bankruptcy for a year and a half, and just recently the sale of that real estate has been estimated at around 180 million kuna.

The Varazdin Commercial Court announced the sale of the Trakoscan Hotel and the Zelena Punta apartment complex in Kukljica on the island of Ugljan, both owned by "Coning" d.d., now in bankruptcy.

Politics in Croatia was often the entry visa for entry into the often harsh world of business and entrepreneurship, but there were also those Croatian politicians who did things in reverse, such as Zeljko Kerum.

Most of the former Croatian politicians and other officials who didn't end up in prison like Ivo Sanader, or who are not awaiting trial like Nadan Vidosevic, are doing consultancy work today, or have thrown themselves into the well-paid banking sector, or even better, the golden haunches - sports organisations, such as Croatian Olympic Committee (Zlatko Matesa).

Former Croatian politicians include those who live well today, although their first steps in entrepreneurship were a complete failure. One of those is Dr. Franjo Tudjman's former adviser, Ivic Pasalic, a general practitioner who, after leaving politics, began getting involved in the construction business. For a long time he was unsuccessful, and as quickly as any business was started, it failed just as quickly.

However, lately, since turning to the development of furniture design, things have improved. His company, Mundus Viridis, received the prestigious Red Dot Design Award in the home furniture category last year.

For more on Croatian politicians-come-entrepreneurs, follow our politics and business pages.

As Poslovni Dnevnik writes on the 29th of November, 2019 the Business Cafe in Zagreb event was attended by Mate Rimac, Croatian innovator, entrepreneur and founder and CEO of Rimac Automobili and Greyp Bikes, Joe Bašić, the owner of MPG, known for the Ultra Festival, Urška Sršen, co-owner of the world-famous Bellabeat and Berislav Horvat, Country Managing Partner of EY Croatia, the organiser of the EY Entrepreneur of the Year program in Croatia.

Joe Bašić is a child of Canadian expatriates who immigrated to Croatia in 1997 because of perceived business opportunities and what he deemed to be a  excellent quality of life. His Ultra Festival in Split has a signfiicant influence on Croatia's GDP, around 190 million kuna.

"In business, I always follow my heart; it's important for me to do something greater and always give more of myself,'' stated MPG's owner.

Urška Sršen is the co-owner of Bellabeat, who, at just 23 years old, started a business with her partner. Forbes recently listed her on its list of 30 under 30 entrepreneurs. "Although the capital is abroad, I like to live in Croatia because of the quality of life."

As an important link to success, she emphasised parental support that always allowed her the freedom to do what she loved, as her parents encouraged her to be the best at it.

Berislav Horvat shared his first entrepreneurial steps during college with the audience at the Business Cage in Zagreb, and emphasised EY Croatia's efforts to improve the business climate and its results.

''I'm pleased with the changing perception of entrepreneurs and the entrepreneurial climate in society. It's going slowly, but it's getting better. "

When asked what he picked up on in regard to all successful entrepreneurs, and what he deemed to be crucial for success, he replied that it was definitely persistence above all.

His comments on the general perception of entrepreneurs gradually changing was confirmed by the fact that Mate Rimac came to this Business Cafe in Zagreb to meet the teens and children to whom he is an idol.

Mate Rimac, simple and approachable in his performance, answered many questions from the audience openly, simply and honestly, and shared his experience of all of the challenges so far in his entrepreneurial journey. He stressed that at the beginning, they didn't even know what they were doing, that he continues to feel that they haven't succeeded, and added that everything is about business.

"At the end of the day, execution is the most important thing, networking is also important, because it's important for someone to open the door and give us support. We support each other, and we look forward to the success of others,'' he told the audience at the Business Cafe in Zagreb.

The Business Cafe is a small business gathering that has been organised for nine years and has been held in seven countries and 25 cities so far. More than 20,000 visitors attended 300 events, they listened to more than 700 entrepreneurial stories and over 30 million euros worth of business and investments have been made, as well as countless friendships and collaborations.

In addition to the regular Business Cafe, there are also special editions, a guest edition and Business Cafe International, an English edition for foreign entrepreneurs in Croatia.

Make sure to follow our dedicated business page for much more.