E-Knjižnica FET "Dr. Mijo Mirković"

Impact of foreign direct investments on development of small and medium entrepreneurship in Croatia

Kersan-Škabić, Ines (2004) Impact of foreign direct investments on development of small and medium entrepreneurship in Croatia. In: An Enterprise Odyssey: Building Competitive Advantage. Graduate School of Economics&Business Zagreb, Zagreb, pp. 282-294.

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Transition period had influenced opening of the economy - as in the aspect of liberalization in the foreign exchange of goods and services, so in the aspect of reduction and removal of limitations to financial trends. Foreign direct investments (FDI) were targeted more intensely towards transition countries of Central and Eastern Europe during 1990-ties, giving an impulse to development of the most successful economies like Hungary and the Czech Republic. Croatia became attractive to foreign investors relatively late due to the war and unstable environment. However, in the second half of 1990-ties, Croatian economy also received significant foreign capital, mostly in the financial and banking sectors. Unfortunately, mentioned investments did not produce considerable impacts on economic categories such are export, foreign exchange deficit, and technological development. The investments were mostly directed towards the acquisition of shareholders packages during the privatization of big companies. Croatian economy characterizes stagnation, which is evident in insolvency, high unemployment rates, stagnating export, a relatively low level of the GDP per capita, rising foreign debt, etc. For those reasons, the significance of small and medium entrepreneurship grows constantly and it should become the base for development of Croatian economy. Experiences of transition countries show that the development of small and medium entrepreneurship is the most efficient way to reduce unemployment rates. There is a large number of small and medium enterprises in Croatia. The enterprises, like the entire economy, must prepare for association to the EU, since this would mean facing strong competitive pressure - the result of internationalization and globalization processes. Therefore, the purpose of this paper is to determine in what volume were foreign direct investments directed towards small and medium entrepreneurship in Croatia and whether the investments represented a significant incentive to its development and forming of new enterprises. The author researched their structure per sectors and investors from 1993 up today ; she also determined a share of green-field investments in the total volume of foreign investments. Results of the research are: the FDI in the SME sector are unsatisfactorily and insufficient, the share of green-field investments is small and inadequate. The SME will have to face upcoming competition pressures on its own. The need for stronger support to development of this sector (through more favorable crediting and other programs which are still in development) was also expressed. This is particularly important because Croatia prepares swiftly for the association to the European Union, where exists a specially elaborated system of support to this sector. Based on the comparison of measures for the SME incentive in Hungary – a successful transition country and Croatia, the author offer guidelines for the future Croatian policy aiming to increase the competitiveness of Croatian economy.

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Tip objekta: Dio knjige
Ključni pojmovi: FDI, SME, Croatian economy, EU
Teme: 3 Društvene znanosti > 33 Ekonomija. Ekonomska znanost > 339 Trgovina. Međunarodni gospodarski odnosi. Svjetsko gospodarstvo > 339.7 Međunarodne financije > 339.727.22 Uvoz kapitala. Priljev kapitala. Strana ulaganja
Odjeli: Fakultet ekonomije i turizma "Dr. Mijo Mirković"
Datum pohrane: 20 Feb 2014 07:52
Zadnja promjena: 20 Feb 2014 07:52
URI: http://eknjiznica.unipu.hr/id/eprint/3413

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