The Zagreb Stock Exchange presented its trading platform Progress on Wednesday, and as stated by its CEO Ivana Gažić, the goal is to create conditions for companies at all stages of growth to secure the necessary capital and thereby contribute to creating a positive environment for entrepreneurs, economic growth, and employment.
– Such trading platforms are designed as places intended for small and medium-sized enterprises to enable easier access to the capital needed for growth and development, Gažić emphasized, adding that Croatia needs to systematically work on developing the potential of small and medium-sized companies.
Platform for Small and Medium Enterprises
Croatian small and medium enterprises, as mentioned, although they make up the majority of all private economic entities in the country and employ the most workers and are at the top of the EU in creating added value, have not yet reached the level of the pre-crisis year 2008 due to significantly hindered access to financing, including access to capital and credit instruments.
>>>PHOTO: ZSE presented Progress, a platform for financing SME companies
Companies that are in a phase of intensive growth and development have a need for financing, while at the same time do not have sufficient cash resources and assets and are particularly sensitive as credit institutions often reject them or offer them short-term financing under less favorable conditions than those for large, mature companies.
The Zagreb Stock Exchange has designed the trading platform Progress, which aims to create conditions in the Croatian market for companies at all stages of growth to secure the necessary capital and thereby contribute to creating a positive environment for entrepreneurs, economic growth, and employment.
Alternative Opportunity for Growth
Progress can provide companies with an opportunity for growth through fundraising without the obligation of repayment and selling a majority stake, along with expanding the investor base, thus ensuring greater visibility to the investment public and easier potential placement of new financial instruments, it was emphasized.
According to the presented data, there are about 13,440 companies in Croatia that can be classified as medium and small, and more than 1,300 of them have capital between 2 and 20 million euros, and they represent the target group for the Progress market.
>>>Zagreb Stock Exchange: Plans to Launch Progress by the End of the Year
Among these companies, there are a significant number that are family-owned and need to transfer ownership to the next generation. Almost 40 percent of them want to appoint a director from outside the family, while about 30 percent want to sell the company, but since finding a strategic partner or selling the company are demanding and lengthy processes, only one percent of owners have managed to secure the future of the business in this way.
Through Progress, it will be possible to raise new capital, but also to technically list shares that allow for easier change or transfer of ownership, said the head of the Progress market, Morana Plejić.
With the introduction to the Progress market, companies will be able to count on the assistance of advisors licensed by the Zagreb Stock Exchange. In just two months, 11 companies have gained advisor status, which indicates that there is interest in Croatia for the development of new products in the capital market.
