Croats are enterprising, but do not know how to start a business

Croatian citizens are interested in starting their own businesses, but generally lack a developed financial plan and do not know what initial steps they need to take, according to the results of a survey conducted during September and October on the MojPosao portal.

The survey conducted on more than 700 respondents showed that the largest number of respondents (78 percent) are considering starting their own business, one-fifth of respondents (20 percent) have already done so, and only two percent are not considering starting their own business. Among the respondents who have already started their own business, two-thirds have opened a company, while one-third has opened a craft. Entrepreneurial ventures are least attractive to the youngest and respondents over 40 years old, while the largest number of respondents who have started their own business are in the age group of 31 to 40 years.

By region, residents of Zagreb and its surroundings are the most inclined towards entrepreneurship. They are followed by respondents from Dalmatia and northern Croatia, while the survey results show that the least ‘entrepreneurial’ residents are from central Croatia, Istria, and Kvarner. Only 28 percent of respondents know exactly what they need to start their own business, 51 percent know it only roughly, and one-fifth of respondents do not know what they need to start their own business.

The biggest obstacle to starting their own business, according to the majority of respondents, is money, followed by a poor entrepreneurial climate, lack of information, and time. A lack of ideas and poor partners are obstacles for a smaller number of respondents. When it comes to financial resources, three-quarters of respondents know roughly or exactly how much is needed to start a business, while 27 percent do not know approximately how much funding would be sufficient. Among the respondents who have already started their own business, just over half (53 percent) knew in advance how much money they would need.

The majority of respondents do not have a developed plan or secured funds in advance, but intend to manage when the time comes using loans or credits. Only 21 percent of respondents have secured the necessary funds. Additionally, most respondents do not know if and from whom they can obtain financial incentives for starting their own business, and only 2 percent of respondents believe that small entrepreneurs have sufficient support from the state, according to the press release.