De Minimis Aid in the Development of Small Business

Great efforts of the Croatian Government in year 2013 were oriented in supporting the development of small business. Small Business includes crafts, cooperatives, micro, small and medium enterprises. Small business makes 99.5% of the Croatian economic system, share of small entities in GDP is from 33 to 33.8%, middle 19%, all together share of Small Business is over 50%. In the past year, due to Croatian accession to the EU, system of supporting of development of Small Business was changed and harmonized with EU practice. Former practice of conducting development policy on war struck areas and mountain areas is replaced with single system based on development index which indicates which areas are less socially and economically developed and therefore need further support. This paper investigates the de minimis aid: relief when paying profit tax, income tax and deductions for businesses that spend on education and training of their workers, and entrepreneurs in whose factories and workshops, practical instruction and exercises for vocations for crafts which are conditioned with such education.