ZAGREB, 10 July (Hina) - Croatian businesses are increasingly focused on innovation, with 55% developing new products, 73% using artificial intelligence in their operations and 69% planning to hire full-time staff within the next year, according to the latest EY Entrepreneurship Barometer survey.
The survey was conducted by consulting and auditing firm EY among Croatian entrepreneurs as part of a regional study covering Central, Eastern and South-Eastern Europe and Central Asia (CESA).
The barometer results show a growing focus on innovation among Croatian businesses, with 55% concentrating on new product development and 59% on process innovation, EY reported on Thursday.
Regarding artificial intelligence, the EY Entrepreneurship Barometer reveals that 73% of Croatian companies increasingly use AI to some extent in their business activities, placing Croatia ahead of the CESA regional average of 61%.
However, domestic companies remain cautious with AI investments, as 41% reported no AI investment in the past three years.
Key challenges: experienced workers and labour costs
In terms of challenges faced, as many as 78% of Croatian entrepreneurs say they struggle to find employees with the required experience, compared to 53% in the CESA region, highlighting the need for closer cooperation with educational institutions and investment in talent development, EY noted.
Labour costs also remain a pressing concern, with 96% of respondents expecting rising labour costs to negatively impact financial security, similar to 85% across the CESA region.
Unsurprisingly, 80% of domestic businesses express concern over current geopolitical instability, but most say they have managed to stabilise their supply chains, with 57% not expecting adverse effects on that front, EY emphasised.
Full-time hiring on the rise
EY also noted that only 4% of respondents plan to sell their companies within the next year, indicating that Croatian owners remain strongly committed to their businesses and focused on long-term value creation.
"Most Croatian entrepreneurs are not considering selling their companies at the moment, and a significant 47% prefer to keep their business family-owned. This reflects an inclination to preserve family heritage, which I believe is part of our mentality and culture," said Berislav Horvat, Country Managing Partner at EY Croatia.
The survey results also indicate that Croatian businesses prefer full-time over part-time hiring, with 69% planning to increase their number of full-time employees over the next year, compared to an average of 48% in the CESA region. Moreover, full-time hiring contributes to a more stable company and business structure, with only 2% of Croatian companies planning to reduce their workforce.
