Entrepreneurs in Croatia Rate Their Business a Four, and More Than 60 Percent Expect to Perform Better in the Future

Entrepreneurs in Croatia are satisfied with their business, as they optimistically welcome the future. Despite challenging years, primarily due to the economic and geopolitical situation, positivity regarding entrepreneurship is at a high level, as shown by a large survey conducted by Ipsos for Mastercard in May and June of this year, in conjunction with the presentation of the third season of the Uplift project aimed at the development of micro, small, and medium-sized enterprises in Croatia. Almost half of the entrepreneurs in Croatia would rate their business with a school grade of very good, and satisfaction and quality of employees, as well as relationships with suppliers, are aspects with which employers are most satisfied.

Namely, 43.6 percent of surveyed entrepreneurs give their business a rating of 4 (on a scale of 1 to 5), 26.1 percent rate their business a three, and 20.7 percent give their business an excellent rating.

—

Future of Business

photo

—

As many as 96.3 percent of entrepreneurs believe that the most important segment for successful business is the quality of employees, while employee satisfaction ranks second in importance at 93.8 percent. Employers consider legal regulations and the number of users of their product or service to be of great significance for business success. Interestingly, they cite the relationship with local government units as the least important factor for business success.

When asked to rate their satisfaction with specific segments of their business using school grades, employers showed the highest satisfaction with the quality of employees. 39.8 percent rated the quality of their employees a straight five, while 38.2 percent rated them very good. As many as 76 percent of respondents rated their relationship with suppliers as very good or excellent, and employee satisfaction ranked third on the list of things with which entrepreneurs are most satisfied. They are least satisfied with cooperation with local government units and the price of raw materials.

Women Entrepreneurs More Optimistic Than Their Male Colleagues

The survey not only provided a current view of entrepreneurship but also insights into entrepreneurs’ expectations for the next two years, showing that 61 percent expect better business performance, while 11 percent expect a negative trend. Interestingly, women have a slightly more optimistic outlook for the future than men, and by age group, the most optimistic entrepreneurs are those between 27 and 40 years old (77.2 percent).

—

Business Info

photo

—

Employers in the tourism and hospitality sector are significantly more positive about the future, with 77 percent believing that their business will perform better in the next two years.

The number of users of products or services and the overall business performance are perceived as aspects that will be somewhat or significantly better in the next two years, while on the other hand, entrepreneurs do not expect positive changes in raw material prices, relationships with financial institutions, and cooperation with local government units.

In Lika and Banovina, entrepreneurs show indications of a more positive perception of their business in the next two years in aspects of legal regulations, availability of raw materials, raw material prices, employee quality, number of users of products/services, and focus on ecological, social, and ethical responsibility in business. Employers in the Croatian Littoral and Istria expect somewhat worse performance in terms of employee quality and employee satisfaction.

Focus on Business Digitalization

Along with employee satisfaction and their quality, entrepreneurs indicate that digitalization of business (average rating 3.8), which includes the development of web shops, informatization of business processes, acceptance of various (digital) payment methods, and similar aspects, will be equally important in the next two years.

—

Tech Info

photo

—

The development of technology increasingly influences the way of doing business, and surveyed entrepreneurs in Croatia indicate that blockchain is the type of technology they are least familiar with (32.8 percent of respondents) and expect the least impact of this technology on their business. Devices that collect and exchange data (IoT) and cloud (IT environment for working and archiving data) are cited by entrepreneurs as technologies from which they expect the greatest impact on their business in the next three years. Interestingly, as many as 38.2 percent of respondents believe that artificial intelligence (AI) will not affect their business in the next three years.

Applications for the Third Season of the Uplift Academy Are Open Until October 1

To make micro, small, and medium-sized enterprises, focusing on those in the tourism, hospitality, and service sectors, more resilient to market challenges and to provide them with the necessary knowledge and skills for further development and implementation of business ideas, Mastercard launched the Uplift project in 2021, which is now entering its third season. The goal of the project is to create entrepreneurs who gain tools for achieving competitiveness in the digital age through education. That is why, as part of the project in collaboration with Algebra, the Uplift Academy was launched, a comprehensive educational program aimed at MSMEs. So far, 72 entrepreneurs from all parts of Croatia have gone through the academy, and from today until October 1, 2023, all interested owners of micro, small, and medium-sized enterprises in the fields of tourism, hospitality, services, and related activities can apply themselves or their employees for scholarships through the form available at uplift.hr.

—

Business Success

photo

—

32 scholarships have been secured for participants who, in addition to education through ten modules (Leadership, Digital Transformation: Achieving Business Success through Modern Technologies, Design Thinking in Tourism, Sustainable Destination Management, Sustainable Tourism, Experience Economy – The Future of Tourism Development, Platforms and Business Models Based on the Internet of Things (IoT), The Fourth Industrial Revolution and Industry 4.0, Commitment to Growth and Results, Customer Journey) will work in teams under the guidance of mentors from November this year until March 2024, developing their own projects that they will present to potential investors at the end of the academy, with the winning team also receiving a cash prize.

“The third generation of Uplifters is ahead of us. Last year’s Net Promoter Score is 89 percent, which is a fantastic result. Since this is a measure of participant satisfaction on one hand and user loyalty to recommend the Uplift Academy on the other, I would say we have a very good ‘product’. Despite such good results, we are preparing some minor changes to the curriculum for the new school year. The focus remains on digital transformation and the green transition of micro, small, and medium-sized enterprises operating in the tourism sector. Along with all this, it is very important for us that participants cover topics in leadership, HR, marketing, and innovation, which will also significantly help them expand their knowledge to be more successful in their daily business,” emphasized Igor Kundić, a member of the Management Board of Algebra.

Kundić also expressed his pleasure that participants in surveys after the education often mentioned the word “sustainability,” which shows that the Uplift Academy has sensitized and made them aware of how crucial it is to be sustainable for future business. For this reason, sustainability will be even more integrated into the curriculum in the third season of the academy.

Uplift Academy for Public Administration – A New Feature of the Third Season

New activities are also planned for the third season of Uplift.

– The reactions of the first two generations of Uplift Academy participants, their later business shifts and successes clearly show us that this type of education was needed for micro, small, and medium-sized enterprises. Now, in the third season, we are taking a step further, planning to conduct the Uplift Academy for Public Administration at the beginning of next year, the first of its kind in Croatia. We are aware of the significant impact that local public administration has on the business environment, so empowering key people in cities and municipalities with knowledge and skills related to digital transformation, green transition, and data management contributes to creating a more favorable business environment for small entrepreneurs,” highlighted Gea Kariž, Director of Mastercard in Croatia.

The key communication hub for numerous interviews with relevant interlocutors as well as for articles on entrepreneurship, business, digitalization, and related topics remains uplift.hr, and in the third season, Uplift conversations with Ida Prester will continue.