Investment Framework of SMEs in Croatia

The development of small enterprises is an important part of economic development of a large number of economies. Small enterprises are particularly important because of its contribution to employment, the creation of the gross domestic product but also because of the country's export activities. The rate of opening new small enterprises in Croatia is lower than the same rate in most EU countries. The problem is getting worse with time due to the high rate of closure of these business subjects. This paper will analyze the financial position and performance of small enterprises in the Croatian economy. Comparative analysis of the availability of financial resources and the business environment of small enterprises in Croatia and Germany indicates the crucial aspects relating to their business viability. It will also explore the possibilities of providing existing investment framework which could help the expansion of economic activities of small enterprises in Croatia.