Enterprise policy performance assessment [electronic resource] : Croatia

2005·3.4 MB·English

by  Organisation for Economic Co-operation and Development

COMPACT
ENTERPRISE POLICY
PERFORMANCE
ASSESSMENT
CROATIA
NVESTMENT
MARCH2005
0ECD((• H?.FOTRASOBUITHLEIATSTYERNPEAURCOPTE •rr*vIFONRVESSOTUTMHENETASCTOEMUPRAOCPTE
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EnterprisePolicyPerformanceAssessment
Croatia
March2005
OECD STABILITYPACT £rINVESTMENTCOMPACT
FORSOUTHEASTERNEUROPE 1 FORSOUTHEASTEUROPE
0
EuropeanBank
Copyrightedmaterial
TheStabilityPactforSouthEasternEuropeisapoliticaldeclarationandframeworkagreement
adoptedinJune1999toencourageandstrengthenco-operationamongthecountriesofSouthEastEurope
(SEE)andtofacilitate,co-ordinateandstreamlineeffortstoensurestabilityandeconomicgrowthinthe
region,(seewww.stabilitypact.org)
TheSouthEastEuropeCompactforReform,Investment,IntegrityandGrowth(“TheInvestment
Compact”)isakeycomponentoftheStabilityPactunderWorkingTableIIonEconomicReconstruction,
DevelopmentandCo-operation.Privateinvestmentisessentialtofacilitatethetransitiontomarketeconomy
structuresandtounderpinsocialandeconomicdevelopment.TheInvestmentCompactpromotesandsupports
policyreformsthataimtoimprovetheinvestmentclimateinSouthEastEuropeandtherebyencourage
investmentandthedevelopmentofastrongprivatesector.ThemainobjectivesoftheInvestmentCompact
areto:
-Improvetheclimateforbusinessandinvestment.
-Attractandencourageprivateinvestment.
-Ensureprivatesectorinvolvementinthereformprocess.
-Instigateandmonitortheimplementationofreform.
TheparticipatingSEEcountriesintheInvestmentCompactare:Albania.BosniaandHerzegovina,
Bulgaria,Croatia,theFormerYugoslavRepublicofMacedonia,Moldova,Romania,SerbiaandMontenegro.
BuildingonthecoreprincipleoftheInvestmentCompactthat“ownership”ofreformrestswithintheregion
itself,theInvestmentCompactseekstosharethelongexperienceofOECDcountries.Itprovidesregion-wide
peerreviewandcapacitybuildingthroughdialogueonsuccessfulpolicydevelopmentandensuresmonitoring
ofprogressaswellasidentificationofpracticalstepstoimplementreformandtransition.
TheworkoftheInvestmentCompacthasbeenactivelysupportedandfinancedbyseventeenOECD
membercountries: Austria,Flanders (Belgium), CzechRepublic,Finland,France,Germany,Greece,
H(suenegawrwyw,.Imrveclsantdm,enIttaclyo,mpJaapcatn.,orNgor).waTyh,eSEwuerdoepne.anSwiCtozemrmliasnds,ioTnurk(eEyC,)Uhnaist,edthKrionuggdhomDGandEnUtneirptreidseStaatneds
Industry,contributedtothefundingforthisreport.
TheEnterprisePolicyPerformanceAssessments(EPPAs)areanoutputoftheSEEEnterpriseForum,a
hreagvieonbaelenpojloiicnytliynpitrioadtiuvceesdpboynstohreedOEbyCDtheanIdnvEeusrtompeenatnCBoamnpkacfotrfRoercoSnosuttrhucEtaisotnEaunrdopDee.veTlhoepmEePnPtA(ErBeRpoDr)t,s
inconsultationwiththeEuropeanCommission(DGEnterpriseandIndustry).TheEPPAreportshavebeen
initiatedbyDeclanMurphy.ProgrammeDirectoroftheInvestmentCompact,andtheirpreparationhasbeen
cEoB-RorDd)inaanteddEbdywaArndtoTneirosmFeatnteell(iDe(PsrkinOcfifpiaclerAdfmoirntihsetrWaetsotr,BaOlEkCaDns),,EFCr-anDcGescEnatePripssrairsiedaesnd(SInednuisotrryE)c.onomist,
Backgroundresearchandsupportforthe2004CroatiaEPPAreport(2ndedition)wasprovidedbythe
ZagrebbasedInstituteforInternationalRelationsandthefirstdraftwasprovidedbyDrNevenkaCuckovic,
DrWillBartlett,Dr.PredragBcjakovicandDrKresimirJurlin.
ThereporthasbenefitedsignificantlyfrominputsandcommentsfromDeclanMurphy(OECD),andthe
assistanceofSusanHodgson(OECD)andGeorgianaPop(OECD).JimBourke(OECDConsultant)has
providedexpertguidanceonthereport.
OECTDheseacsresteasrsimaetnatnsdaonfdthveieEwBsReDxprOeffsisceedoifntthheisChriepeofrEtcaorneomtihossteaonfdtdhoenIontvenesctemsesnatriCloymrpefalcetctTteheamvieowfstohef
theOECDandEBRDmembercountries.
3
FOREWORD
Inallcountriesthegovernmentanditsagencieshaveafundamentalleadroletoplayin
providinganenvironmentfavourabletobusinessoperationsandconducivetoprivate
investment.Thisisespeciallytrueforsmallbusiness.Smallandmedium-sizedenterprisesare
thebackboneofmosteconomiestoday.Inordertoflourishandgrowtheyneedan
environmentthatfacilitatesandenablesbusinessstart-up.doesnothamperthemwith
excessiveandcostlyregulationsandfacilitatesaccesstofinanceandbusinessservices.Inthis
respectthereisanurgentneedinSouthEastEurope(SEE)todesignandimplementan
effectiveenterprisepolicy,asthelevelofprivateinvestmentstilllagsbehindthatofadvanced
countries.
Forthesereasons,in2002theOECDandtheEBRDlaunchedtheEnterprisePolicy
PerformanceAssessments(EPPAs)intheframeworkoftheInvestmentCompactforSEE
PEurroogprea,mmaes.seTsshiengEPthPeAsqucaolnistiystofofthaesegroiveseronfmreenptortpsolciocvyerfionrgtahleltShMeEcousnetcrtioersoafndSoruetghulEaarslty
monitoringitsimplementation.In2002theInvestmentCompactpublishedninecountry
reports(separatereportswereproducedforSerbiaandMontenegro,respectively)aswellasa
RegionalEPPAreportmeasuringprogressonSMEpolicyimplementationintheSEEagainst
asetofgoodpracticesandbenchmarks.
Aspartofthe2004EPPAprogrammetheInvestmentCompactpresentsthe2004edition
oftheEnterprisePolicyPerformanceAssessmentforCroatia.Theformatofthereportisthe
sameaslastyear,allowingforadirectcomparisonoftheprogressachievedsincethe2003
EPPA.
The2004reporthasbeenpreparedbytheOECDandtheEBRDincloseconsultationwith
theEuropeanCommission,which alsoprovidedfinancialsupporttotheprogramme.
ExcellentsynergieshavebeendevelopedbetweentheEPPAandtheEuropeanCharterfor
SmallEnterprises,withtheEPPAprovidingasetofpolicyrecommendationsandpriority
actionstothegovernmentandsmallbusinesscommunityinthosepolicydimensionscovered
bytheEuropeanCharter.InordertoimprovethelinkbetweentheEPPAandtheEuropean
Charter,thescopeofthe2004EPPAhasbeenexpanded.TheEPPAreportsnowcoverseven
policyareas,addingentrepreneurship,vocationaltrainingandaccesstotechnologytothe
previoussetofsixpolicydimensions(institutionalframework,regulatoryenvironment,tax
policy,accesstofinance,advisoryservices,businessincubators),bringingtheirscopecloser
tothatoftheEuropeanCharter.
ENTERPRISEPOLICYPERFORMANCEASSESSMENT:CROATIA-ISBN-9264-6401140-4©OECD2005
4-FOREWORD
ThisEnterprisePolicyPerformanceAssessmentreportispresentedasanindependentand
coofnfsatcriulcittaitviengcotnhterirbeuftoiromnitmoptlheemednetbaattieono.nTehnteerOpEriCsDe,poEliBcRyDinaCnrdoaEtiuar,opweiathntChoempmriisnsciipoanlwaiilml
monitorprogressandseektoprovideactivesupportonimplementationinpartnershipwiththe
SEEcountriesin2005.
ManfredSchekulin RainerGeiger MilenKeremedchiev,
Director,ExportandInvestment DeputyDirector NationalCoordinatorofthe
PolicyDepartment DirectorateforFinancialFiscaland StabilityPact,
FederalMinistryforEconomic EnterpriseAffairs Bulgaria.
AffairsandLabourofAustria OECD Co-Chair, Investment Compact
Co-Chair,InvestmentCompact Co-Chair,InvestmentCompact ProjectTeam
ProjectTeam ProjectTeam
ENTERPRISEPOLICYPERFORMANCEASSESSMENT:CROATIA-ISBN-9264-6401140-4©OECD2005
11
5
TableofContents
Introduction 7
ScopeandStructureoftheEnterprisePolicyPerformanceAssessments(EPPAs) 7
TheEPPAMethodology 8
I'arll
OverallAssessmentandPolicyRecommendations
OverallAssessment 12
2004PolicyRecommendationsandPrioritiesforAction 16
Part11
Chapter1 ViewsoftheSMEOwnersandManagers 25
L Introduction 26
2. InstitutionalFrameworkforSMEPolicy 27
3. RuleofLawandRegulatoryEnvironment 33
45.. TFianxanPcoilailcyTnfsotrnSimmeantllsBfuosriNneeswsesandSmallBusinesses 4317
Z6. BAudsviinseosrsyISnecruvbiacteosrsforNewandSmallBusinesses 4458
8. Entrepreneurship,Education,AccesstoTechnology 5
Chapter2 AnalysisandAssessment 55
1. InstitutionalFrameworkforSMEPolicy 56
2. ImplementationoftheRuleofLawandtheRegulatoryEnvironment 61
3. ImplementationofTaxPolicyforSmallBusinesses 65
4. ImplementationofFinancialInstrumentsforFosteringSmallBusinesses 69
5. ImplementationofAdvisoryServicestoNewandSmallBusinesses 75
6. ImplementationofBusinessIncubators 80
7. ThAecCcoesmspettoiKtinvoewCloenddgietiaonndsTfeocrhEnnotlroepgryeneurship:Education, 82
8. Reportontheimplementationofthe2003EPPAPolicyRecommendations 85
Annex1. InformationSources 9
AnnexII. We.hSites 94
Annextil. F.PPAMethodology 96
AnnexIV. AttainmentoftheEuropeanCharterforSmallEnterprise2003Targets 98
AnnexV. ListofContacts 100
ENTERPRISEPOLICYPERFORMANCEASSESSMENT:CROATIA-ISBN-9264-6401140-4©OECD2005
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6-TABLEOFCONTENTS
Tables
Table1.1. RelativeImportanceofMainFinancialSourcesAccessedbvSMEs 43
Table1.2. RelativeImportanceofdifferentpurposesofBankFunding
AccessedbySMEs 44
TTTaaabbhllleee222..321.. IRDnoBvmeRessDttmiSeccnotCrrIeendfcioetrnt(Fiiivnnea%sncoiaflGSDePc)torReform ....667604
Table2.4. ScienceandtechnologyrelateditemsusedintheGCRranking2003/2004.......84
Figures
Figures1.1.&II.1.1 bAyveSraMgEeORawtnienrgssoafndthMeanSaegveernsD,i2m0e0n3siaonnds2o0f0G4oodPractice 12&27
Boxes
BBooxx21.. SPruimormiatyryReoffoPrrmogIrsessusesofnorthAectEiuornopeanCharterforSmallEnterprises 116
ENTERPRISEPOLICYPERFORMANCEASSESSMENT:CROATIAISBN-9264-6401140-4©OECD2005
7
INTRODUCTION
ScopeandStructureoftheEnterprisePolicyPerformanceAssessments(EPPAs)
The2004EPPACountryReportshavebeenpreparedjointlybytheOECDandthe
EBRD,inconsultationwiththeECandwiththeassistanceofanetworkofSouthEast
Europeanandinternationalconsultants.
In2002theOECDInvestmentCompactandtheEBRDlaunchedtheEnterprise
PolicyPerformanceAssessments(EPPAs)withtheaimofproducingindependentand
comprehensiveassessmentsonanannualbasisoftheenterprisepolicycarriedoutbythe
governmentinstitutionsintheeachofthecountriesofSouthEastEurope.
fromTheentcroeupnrternyeuarssseasnsdmenStMiEsthoewnreersusl,tocfoltlheecteeldabtohrartoiuognhoffoacunsumgbreorupofdiinspcuutsss:ioinnssigahntds
interviews,contributions fromSMEexperts,policymakers,representativesofthe
associationofprivateenterprises,internationalandbilateralorganisationsdealingwith
SMEissues,deskresearchandanalysis,combinedwiththeexperienceandjudgementof
OECDandEBRDexperts.Theassessmentwasoriginallydesignedtoaddresssixpolicy
dimensions,atthecoreofenterprisepolicy.
NineEPPAreports,oneforeachoftheSEEcountry,withSerbiaandMontenegro
beingassessedseparately,andaRegionalSEEAssessmentReportwerepublishedbythe
InvestmentCompactin2003anddisseminatedthroughouttheSEERegion. Allthe
reports are available from the Investment Compact web-site:
www.investmentcompact.org.
TheECGeneralDirectorateforEnterpriseandIndustryjoinedtheOECD-EBRD
teaminOctober2003withtheaimofdevelopingsynergiesbetweentheEPPAsand
monitoringoftheimplementationofthebestpracticescontainedintheEuropeanCharter
forSmallEnterprises,signedbyalltheSEEcountries.
The2004EPPACountryReportsrepresentbothacontinuationandanexpansionof
theworkstartedin2002.Thescopeofthereportshavebeenexpandedin2004toinclude
aseventhpolicydimensioncovering entrepreneurship,vocationaleducationandaccess
totechnologies,therebybetterintegratingthescopeoftheEPPAswiththatofthe
EuropeanCharteronSmallEnterprises.
The2004frameworkofresearchforanalysisoftheperformanceofenterprisespolicy
thusconsistsofthefollowingdimensionsofsmallenterprisepolicy:
• InstitutionalframeworkforSMEspolicy.
• Ruleoflawandregulatoryframework.
• Taxpolicyforsmallbusiness.
ENTERPRISEPOLICYPERFORMANCEASSESSMENT:CROATIA-ISBN-9264-6401140-4©OECD2005
8-INTRODUCTION
• Financialinstrumentsfornewandsmallcompanies.
• Businessconsultingservicesfornewandsmallenterprises.
• BusinessIncubators.
• Entrepreneurship,vocationaleducationandaccesstotechnologies.
The2004EPPACountryReportsarestructuredintwoparts.PartIincludesan
overallassessmentofenterprisepolicy,lookingatprogressmadesincethepublicationof
the2002EPPAreport.Italsocontainsanupdatedlistofpolicyrecommendationsanda
setofprioritiesforshorttermaction.
SMEParotwInIercosnsaisntdsmoafntawgoercsh,aptwehrisl.eTthheefsiresctocnodntcahianpstethreiisnsdiegdhitscaotfedenttoreapnraelnyesuirssaanndd
assessment,includingareportontheimplementationofthepolicyrecommendations
listedinthe2002EPPACountryReport.
TheEPPAMethodology
TheEPPAmethodologyhasbeendesignedtoprovideinsightsandassessmentsofthe
performanceintheimplementationofpoliciestoimprovetheinvestmentenvironmentfor
smallbusiness.TheEPPAshavebeenconductedonastandardbasisinallcountriesof
theregionandprovideabenchmarkfor(a)highlightingkeyreformissues(b)measuring
privatesectorinsightsandassessmentsofthebusinessenvironment(c)assessingprogress
onacountry-by-countrybasisand(d)comparativecross-countryreviewfortheSEE
region.
Thepolicyassessmentshavebeenformulatedonthebasisofthefollowinginputs:
Focusgroupresearch:
FocusgroupdiscussionswereheldwithSMErepresentatives.Thefocusgroup
discussionswereguidedbyaquestiontemplate,appliedtoalltheSEEcountries,derived
fromextensivecasestudyworkongoodpracticeintransitioneconomies,includingSouth
EastEurope,andOECDcountryexperience(OECD-UNIDO,1999).
IndividualSMEinterviewsandexpertinterviews:
IndividualSMEinterviewswereusedtocrosscheckthefocusgroupresearchandto
providefurtherinsightsonkeyissuesineachoftheSEEcountries.
Expertinterviewswereconductedtocrossreferenceinformationfromthefocus
groupsandindividualSMEinterviewsandtocontributetooverallviews.
Deskresearch:
Examinationofexistingreports, databases,documents,etc. wasconductedby
country-basedexperts/consultants,selectedfortheirenterprisepolicyknowledgeand
experience,underthesupervisionoftheOECDInvestmentCompactteam.
ENTERPRISEPOLICYPERFORMANCEASSESSMENT:CROATIAISBN-9264-6401140-4©OECD2005
INTRODUCTION-9
ExpertisefromtheOECD,theEBRDandtheEC:
AteamofexpertsfromtheOECD,EBRDandfromOECDcountrieshasreviewed
inputsfromfocusgroups,interviewsanddeskresearchandelaboratedthecountry
assessments.
AdetaileddescriptionofmethodologyusedintheresearchispresentedinAnnexIII.
ENTERPRISEPOLICYPERFORMANCEASSESSMENT:CROATIA-ISBN-9264-6401140-4©OECD2005