The attribute of a fast-growing company implies an average annual growth of employees of more than 10 percent over a three year period, and Croatian companies are higher than the European Union average in that sense.
As Jadranka Dozan/Poslovni Dnevnik writes on the 11th of December, 2019, in the business sector in Croatia, the share of fast-growing companies is higher than the EU average, and in the competition of 10 so-called New Europe countries, Croatia is right in the middle.
As stated, the attribute of a fast-growing company implies an average annual growth in the number of employees over 10 percent per annum over a three-year period, with active companies with at least 10 employees at the beginning of the period under review. According to the most recent comparative Eurostat survey in Croatia, approximately every eighth Croatian companie, representing 12.5 percent of the total number of active companies with more than 10 employees, is close to being called a ”fast-growing” company. These Croatian companies employ more than 114,000 people.
At the EU level, the share of fast-growing companies is slightly lower, standing at 11.3 percent. There are around 190,000 of these in total, and their importance and contribution to growth and job creation are evidenced by the fact that such companies provide jobs for 16.4 million European Union employees. Over recent years, the share of fast-growing companies in the bloc has been increasing, increasing in three years (compared to 2014) by 2.1 percentage points at EU level.
The same trend is observed here at home with Croatian companies. However, sector-wise, Eurostat data suggests that the fast-growing companies are somewhat different in Croatia than they are in the EU. The Eurostat analysis points out that the share of high-growth enterprises is more pronounced in the service sectors than in the rest of the business sector, with the highest percentage being in the Information and Communication sector (17 percent), Administrative and support services (15.3 percent) and the Transport and storage sector (14 percent).
The data for Croatia shows that the largest share of fast growing companies has been recorded in Transport and Storage (16 percent, and 120 companies with more than 6,700 employees) and in the Information and Communication sector (15 percent and 90 companies with more than five thousand employees in total).
The share of fast-growing companies among the total active section with at least 10 employees in the EU is led by Ireland (16.5 percent), Spain (15 percent), Portugal (14.2 percent) and the Netherlands (13.9 percent), while in Cyprus and Romania, this figure stands at less than three percent, and it is interesting to note that Austria is also below the average with 7.8 percent so called fast-growing companies.
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