Role of entrepreneurship support institutions in development of the economy of eastern Croatia – case of Centre for Entrepreneurship Osijek

Destroyed industry and infrastructure and high unemployment rate are the main characteristics of economy of Eastern Croatia after 1995. War events, which have significantly affected this part of Croatia, have left a large and indelible mark on the economy, whose recovery has demanded new knowledge, skills and approaches. High unemployment rate, and restructuring destruction and of large systems were incentive for an increasing number of people to solve their subsistence through self-employment. In their attempts to find entrepreneurial ideas, and start entrepreneurial ventures, they came across numerous obstacles, greatest among which were lack of information and entrepreneurial knowledge. Start-up entrepreneurs lacked one of the most important factors for quality and successful start of entrepreneurial career - entrepreneurial environment. Entrepreneurial environment is an environment that ensures access to sources of funding, favourable government policies and programmes, and access to professional services. In that situation, establishment of Centre for Entrepreneurship Osijek, which was among the first entrepreneurial centres that were established in Croatia, seemed as a logical step in fostering economic development of the region. Centre for Entrepreneurship Osijek was founded in 1977, as a non-governmental organisation, with the aim to promote entrepreneurial behaviour and provide information to all future and current entrepreneurs, related to start-up and development of entrepreneurial ventures. Today, after 15 years of existence, the Centre has become a reference point of Osijek’s entrepreneurial infrastructure, the oldest centre for entrepreneurship in Croatia, Centre which entrepreneurs still visit every day. Through the case of Centre for Entrepreneurship Osijek, programmes and activities it carries out, and work on encouraging entrepreneurship in Eastern Croatia, this paper will attempt to show the importance of supporting institutions in the development of entrepreneurial environment. By analysing the number of users of services of Centre for Entrepreneurship Osijek, collaboration and networking with other supporting institutions, and institutions of local self-government (Association of Croatian Institutions for Promotion of Entrepreneurship - UHIPP, Business Incubator BIOS ltd., Croatian Employment Service, Regional Office Osijek, Office for Economy of the City of Osijek, Agency for Development of Osijek-Baranja County, etc.), will show the scope of activities of this organisation. The main objective of this paper is to underscore the importance of supporting institutions in fostering entrepreneurship, that is, development of an enabling and supportive environment, and its importance for starting new, and the growth and development of existing small and medium-sized enterprises in Eastern Croatia.