Business stories of entrepreneurs caught in the jaws of local bureaucracy
Losing money, time and will to work – the following is a short list of examples of incredible delays and obstacles an investor must go through in Croatia, while the long list would require a specialised website, published by Jutarnji List on July 14, 2016.
1. Hotel Sheraton Dubrovnik
Part of the tourism business of Anđelko Leko, it was opened 10 years after the first investment announcement, due to unresolved property relations. The investment was worth 80 million Euro and was used to renovate hotels in Župa Dubrovačka.
2. Landing delayed by 14 years
European Coastal Airlines, the hydroplane service business, took 14 years from idea to reality, while the patient owner was Klaus Dieter Martin, pilot and entrepreneur who fought with port authorities for concession needed to land hydroplanes. Once resolved, even the state bragged of the 30 million Euro investment.
3. Hotel 8 in Supetar
A hotel in the town of Supetar on Brač island is named Hotel 8. The name is a dedication by the owner to Croatian bureaucracy as it took him eight years to open the hotel due to disputes with the local administration. When he did manage to open, he got sued as he planted three palm trees on a public surface to decorate it. They also restricted traffic in the street of the hotel so guests must walk to reach it.
4. Ikea waited 5 years
Not even the status of a global billionaire helps in Croatia, though it seemed it might after Ikea received a building permit in only 20 days. It then took them five years to resolve property issues on land paid 26 million Euro.
5. Lost 900,000 Kuna while waiting
The slowness in issuing building permits cost Ivan Mikšić, director of the Turbine Factory in Karlovac, 900,000 Kuna. It was issued in four months, but in that time the credit rating of the state fell and he couldn’t acquire an HBOR loan as it became more expensive and so did the new production plant.
6. Closed after 43 years of operation
An environment protection inspector only stopped by the foundry of Rijeka entrepreneur Edi Filipović once, who then went from a successful employer to the owner of a bankrupt company, sending six workers to the labour market. Filipović dealt with steel, exporting ship engine moulds for 43 years and lost his business permit as he did not have a waste management permit. He tried to procure one, but was denied as by the general urbanism plan he is located in the wrong area. Local bureaucracy tried helping him by requesting an extension of operation until he relocates, but it didn’t help. Business closed, Filipović moved to Finland.
7. A year and a half in court
A year and a half of court dates on the Zagreb Commercial Court is the story of Hrvoje Bujas, owner of the sales portal Crno Jaje, after a business inspector surfed his portal and discovered he did not cite all 13 necessary data on the company he runs. He broke the law and could have been sent a notice to fix the problem, but apparently the administration felt it more efficient to drag him around court to charge him a 400 Kuna fine.
