engleski

The Role of Institutional Support in Fostering Entrepreneurship

Under favorable circumstances, especially regarding institutional conditions, entrepreneurship can be a powerful engine of economic growth. To have a positive impact on economic growth, entrepreneurship has to be productive and driven by opportunity. This paper presents a study of a small wood-processing firm that has, it seems, a financially promising business idea. But, the paper indicates that good business idea and business expertise are not sufficient for start-ups. The main purpose of this paper is to discuss the role of institutional support in fostering entrepreneurship. Financial support being frequently constraint under undeveloped financial market is a part of institutional support. The paper indicates the need for faster financial market development in Croatia because it is underdeveloped. The paper also points out the need for existence the other forms of entrepreneurial financing besides bank credits, such as venture capital, business angels and corporate share issuing.

entrepreneurship, Croatia, institutional environment, financial funds, small wood processing firm

nije evidentirano