Environment for SME Sector in Croatia With Emphasis on Innovation

This paper examines SME sector in Croatia as well as its impact on the national economy. Special emphasis is given to innovation which, according to many authors, is one of the main drivers of SMEs business success. Furthermore, this paper examines the environment in which SMEs operate. Scores and structure of most cited indices are compared between Croatia and EU average, in addition to providing an overview of the various government programs and activities that are directed towards improving the entrepreneurial and innovative environment in Croatia. The aim is to determine how important SMEs are for Croatian economy, how much is SME sector innovative and what the main disadvantages of entrepreneurial environment in Croatia are.