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Enterprise minister says SMEs can pull Croatia out of crisis

ZAGREB, April 25 (Hina) - Entrepreneurship and Crafts Minister Gordan Maras said in parliament on Wednesday that small and medium enterprises could pull Croatia out of the crisis.

"We don't have big corporations, but I believe that in the future SMEs can pull Croatia out of the crisis," he said during a discussion on amendments to the law on SME development.

SMEs account for 99.5 per cent of all businesses in Croatia and more than 50 per cent of gross domestic product, employing more than 64 per cent of all workers, said Maras.

The Croatian economy, by structure, is a micro-economy, he said, adding that one of his ministry's main tasks was to provide for favourable financing of guarantees.

Croatia must ensure the stability and security of investments, he said, adding that the amendments were aimed at boosting enterprise by attracting investments.

"The goal is to return to 2008, the EUR 4 billion of foreign investment in Croatia," Maras said, adding that the prerequisites must be created by 2014 so that foreign investment exceeded four billion.

The amendments categorise micro-enterprises with up to ten employees, small enterprises with up to 50 and medium enterprises with up to 250 employees, and define micro-projects of up to EUR 1 million, small projects of up to 10 and medium projects of up to 50 million euros.

The categories are aligned with definitions of the European Commission, the European Investment Bank and the European Investment Fund with an aim to improve the consistency and effectiveness of SME policies and expand the existing corps of SMEs, which will increase the number of beneficiaries of enterprise development incentives.

Maras said the amendments would extend the authority of the Croatian Agency for SME to investment promotion and rename it HAMAG INVEST, the Croatian Agency for SME and Investment, which is expected to improve the investment climate in Croatia.

The opposition did not endorse the amendments to the law on SME development, disagreeing with the position of the government and the ruling coalition that the measures would help develop enterprise and increase employment.

The ruling coalition parties supported the amendments.

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