ZAGREB, February 4, 2018 – The labour force, judiciary and taxation system continue to be the greatest challenges for entrepreneurs, shows the latest half-yearly survey by the Croatian Chamber of Commerce (HGK) covering 380 businesses registered in Croatia which were asked about their expectations for the next six months.
Most companies do not expect changes in general business conditions. Ranking factors that will most positively impact their operations, entrepreneurs underscored further growth in foreign and domestic demand while availability of the labour force, the judiciary and the taxation system were highlighted as factors expected to have a negative impact.
As far as revenue is concerned, mild optimism prevails, with roughly the same number of entrepreneurs expecting their revenue to stay the same (41%) or increase (42%). More than half of the respondents expect their revenue on foreign markets to increase or at least stay the same.
The Chamber notes that this is in line with current export trends and stable growth in the EU as the most significant market. Entrepreneurs in the manufacturing sector were the most optimistic, most of them being exporters who base their optimism on stable growth on the global scene.
The percentage of business people who believe that investments in the next six months will increase and those who think they will remain at the same level as in the previous six months, is the same (39%). Almost two-thirds of respondents do not expect the number of people employed to grow.
“Owing to stable growth globally, manufacturing exporters are, as expected, the most optimistic. Nevertheless, the availability of the labour force remains one of the factors which entrepreneurs believe will have the biggest negative effect on business. We need to continue developing long-term measures to harmonise market needs with the education system and this is particularly important for dual vocational education and industries suffering the greatest repercussions of labour shortages, such as the construction industry and tourism,” HGK president Luka Burilović said in a comment on the survey.
