Formal Institutions and Environmental Factors Framing Entrepreneurship in Croatia

Abstract

This paper has two purposes. First, it provides an assessment of the factors framing entrepreneurship in Croatia and how they influence the predominantly necessity-oriented entrepreneurship in the nation. The factors considered include – economics, formal institutions, culture, the industrial structure, human capital and social capital. The second purpose is to present possibilities on how different institutions, through their policies, programs and implementing organizations, impact the above factors. Understanding the sources influencing necessity entrepreneurship is important because the Croatian government’s goal is to reach 75% of the EU25 mean GDP by 2013, partly using entrepreneurship development as an engine of this growth.