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SME sector between strategic vacuum and institutional redundancy - Experience of Croatia

Croatia has defined several layers of governance (national, regional, local) over the SME sector. However, Croatia still needs an overarching strategy of national development and institutions that coordinate activities to enhance capacity to implement that strategy. SME is a part of the economy interrelated to the other elements, and sensitive to the changes in any part of the system. Experiences of countries like Ireland show us that there are some simple but effective things a country can do to speed up economic growth. Ireland presents a role model of national consensus over the strategy for development, and clearly profiled instititions coordination on implementation of the strategy. The SME sector needs to be profiled according to the potential to growth, and size, and a few more policies should be adopted accordingly. There is in general a good policy of supporting new venture start ups, there is a policy for restructuring large systems, there is no policy for second or third level of the growth when venture is inclined to transit from small to medium-sized business. More attention to the sectors that are viable and have growth potential, and are sustainable is also necessary and will increase the overall economic climate and survival rates of the slower growing ventures too. Better targeting of education and entrepreneuship training policies are necessary in order to change long term unentrepreneurial education. Media and public attention should also be given the function of mental reprogramming of the cultural framework.

SME strategy; redundancy

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