Comparative Analysis Of Entrepreneurship Development In Eastern Region And Other Regions Of Croatia

Entrepreneurship development, especially regarding small and medium-sized enterprises, is the backbone of development in Croatia. Conducted research indicates that eastern Croatia, on average, is the least competitive and requires a significant investment to reach the other regions, especially in the development of entrepreneurship, business infrastructure and investment incentives. The paper aims to show the importance of entrepreneurship for the development of eastern Croatia compared to other counties and regions, the number, structure, composition and business activities of entrepreneurs, relevant financial statements, particularly the structure of assets and liabilities in the balance sheet, financial results i.e. revenues, profits , loss, investment in fixed assets, and the main indicators of financial analysis specifically indicators of labour productivity, business efficiency and profitability of eastern Croatian enterprises. To this end the results of relevant research institutions have been analysed, as well as scientific and technical literature, policy documents and reports. Based on the analysis of available data, synthesis and deduction and in particular classification and comparison with other regions and counties, a conclusion about the position and importance of entrepreneurship for the development of eastern Croatia has been drawn. The research results indicate a low proportion of eastern Croatian entrepreneurs in the overall financial results of Croatian entrepreneurs and a heterogeneous structure of their financial results. Whereas Osijek-Baranjacounty plays a vital role in the development of entrepreneurship, other counties of eastern Croatia are entrepreneurially underdeveloped. The results highlight the problems of entrepreneurship development, particularly lengthy procedures of starting businesses, protecting investors, liquidity and insolvency problems, availability of external sources of financing and associated credit terms, underdevelopment of capital markets and other forms of financing. The importance of small and medium-sized enterprises in the development of eastern Croatia has been emphasized. The analysed area comprises eastern Croatian counties: Osijek-Baranja, Vukovar-Syrmia, Virovitica-Podravina, Brod-Posavina and Pozega-Slavonia.