Return Funds for Entrepreneurial Zones That Have Not Thrived

About 70 units of local and regional self-government have not justified the purpose for which the funds were allocated for entrepreneurial zones, and requests for the return of funds to the state budget have been sent to them, amounting to 14.25 million kuna, it has been learned from the Ministry of Entrepreneurship and Crafts, which is preparing a law aimed at bringing order to the operation of entrepreneurial zones.

According to the Ministry’s data, from 2004 to 2012, the construction of 346 entrepreneurial zones was co-financed, a total of 687.9 million kuna was allocated, and 196 entrepreneurial zones are active. In these zones, 2,826 entrepreneurs are active, employing 46,600 workers.

There are 27 zones in the activation process (without employees), 123 zones are inactive (there are still no entrepreneurs or entrepreneurial activities), and there is a record of about 100 zones that are not in the support system.

For the purpose of constructing entrepreneurial zones from 2004 to 2011, 179 properties worth over a billion kuna were donated to local self-government units. Some units did not properly manage these properties and did not put them to use within the contracted three-year period, and a control of all land allocations is planned.

The Ministry states that in order to establish order and the requirement to justify the allocated funds, all local units have been informed in writing about the status of justification several times, and that from December 20, 2011, to January 19 of this year, 30.4 million kuna has been justified (referring to the period from 2004 to 2010).

However, another 70 local units have not justified the funds allocated to them, amounting to 14.25 million kuna, and requests for their return have been sent. If these units do not fulfill their obligations, the Ministry announces that it will collect these claims through the provided payment security instrument.

To establish order and accountability in the operation of entrepreneurial zones, the Ministry is preparing a draft law on the improvement of entrepreneurial infrastructure, which will go to public discussion at the end of next week.

The law will regulate the definition, types, and categorization of entrepreneurial zones, the establishment of a register of entrepreneurial zones, i.e., a database in the competent ministry, criteria for land allocation for the construction or expansion of zones, etc.

For example, when allocating land, a concession model will be used, and the new legal framework will also allow the state to establish a zone.

The ministry emphasizes that last year they began allocating support exclusively to promising zones, as the allocation of funds to non-promising zones from 2004 to 2011 led to a large number of inactive zones.

The direction of investment is, as they emphasize, supporting zones with quality programs and potential, meaning that it will no longer be done on the principle that every place has its own entrepreneurial zone, but only where certain results can be expected from the investment will be opened and supported.

Thus, this year they will continue co-financing entrepreneurial zones through the Entrepreneurial Infrastructure Development project, specifically those that are ready to accept new investments, and more funds will be directed towards co-financing technological parks and entrepreneurial incubators for accommodating start-up entrepreneurs focused on new technologies and innovations.