Spin City Project Proves State Financial Support is Necessary for Innovative Business

Total Croatia News

This project is based on the principles of the sharing economy and ecology with an application of modern technology

Financial support from the state is paramount in the development of innovative entrepreneurship in Croatia. This was emphasised by Deputy Entrepreneurship and Crafts Minister Mario Antonić and Management President of HAMAG-BICRO Vjeran Vrbanec at a meeting with Matija Krznar, director of the Urban Mobility company that introduced to Croatia the car sharing service Spin City, as Poslovni Dnevnik reported on June 23, 2016.

Investments in this project amount to 440,000 Euro, while HAMAG-BICRO secured a guarantee in the amount of nearly 120,000 Euro.

“HAMAG-BICRO supports quality young and innovative business undertakings that have a hard time finding finances. Such is the car sharing Spin City project, the first of its kind in Croatia. It is an innovative approach to solving transportation problems in urban areas. Matija and his team are proof that Croatia has quality projects, good business opportunities and ways to successfully start or upgrade a business. Therefore we will, together with the Entrepreneurship and Crafts Ministry, make a step forward in strategic and effective withdrawal of EU funds to secure the competitiveness of Croatian entrepreneurs at the international level,” said Vrbanec.

Guarantees as a key instrument of the Agency for Support in Startup and Development of Business Projects has generated excellent results in the last few years. Based on the experience of execution of financial instruments and recognised market needs, new instrument have been created to be undertaken through Structural Funds. Micro and small loans, individual and portfolio guarantees and interest subsidies will greatly ease access to financing for entrepreneurs in the upcoming period.

“Sources of financing is one of the biggest problems for entrepreneurs, especially in Croatia where the market of risk capital funds and other alternative source of financing has not been developed, creating a perception among business people that money can only be obtained through credit lines in commercial banks. Our Ministry and the associated HAMAG-BICRO continually invent measures to support entrepreneurs and craftsmen to reduce their investment risk. We want to enable them to focus on developing their business idea, spending less time on servicing finances,” said Antonić.

Spin City is based on the sharing economy and ecology with an application of modern technology. Car sharing provides citizens with vehicles to use without the cost of ownership and maintenance. The service will primarily be used for Zagreb and the surrounding area.

“Thanks to the HAMAG-BICRO guarantee, Urban Mobility had an easier time crating preconditions for starting a business. This also means creating ten new green jobs. We are proud to be able to employ ten young people with an average of 29 years in an ecological and socially responsible and to have on the streets of Zagreb a Spin City fleet of 30 vehicles – 10 electric and 20 classic drives. I believe that many such projects can give a momentum to Croatian economy,” said Krznar.


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