engleski

Entrepreneurship in various conditions: Croatian and Chinese experiences

The entrepreneurial sector plays a very important role in developed market economies. The results of this role can be seen through dynamic economic growth, increased employment, market innovation, active foreign trade, and the process of economic globalization. Satisfactory market conditions are required to enable this role. Without these market conditions, namely a developed market mechanism and an incentive economic policy, entrepreneurship could neither develop nor survive. It is the lack of these conditions that are the main reasons entrepreneurship did not develop in non-free-market economies. However, conditions are changing through reform, liberalization and the move from a planned-economy to a free-market economy. Consequentially, such changes result in the expansion of the entrepreneurial sector. In support of this claim, the authors use China and Croatia as examples. China is experiencing a tremendous development of the entrepreneurial sector due to its implementation of reform and open policy. In this manner, the entrepreneurial sector (here defined as small and medium business - SMB) has become the most energetic strength in the economic development of China. Equally, due to the transition process, there has been a revival of entrepreneurship in Croatia. Tens of thousands of new, small enterprises have appeared, but with significantly poorer real results than those expected as compared to China. Presently, this implies that the share of SMB in basic macroeconomic aggregates is small. The political and economic systems in China and in Croatia are significantly different. China is a country which, in spite of specific conditions, began with reforms, liberalization and economic openness with the world already at the end of the 1970s. In China today, the &#8220 ; two systems in one&#8221 ; model functions successfully. In Croatia, the transition from a planned-market economy to a free-market economy began in the early 1990s. As with other countries in transition, the Croatian economy is facing enormous problems that are having a negative affect on entrepreneurship. The paper analyzes the conditions and experiences of developing entrepreneurship trends in China and in Croatia. This comparision reviews entreprenuership development in an Asian country which applies economic reform in its own specific manner (China) and in an European country which, as in surrounding countries, chose a &#8220 ; classical&#8221 ; transitional model (Croatia). Emphasis is placed on how nothing exceptional will automatically happen with entrepreneurship in general while entering the new millenium. The authors conclude a fierce determination to entrepreneurship with appropriate economic policies are needed. The new policies - the economic policy of the new millenium - have to offer more incentive for entrepreneurship than previously shown in order to hasten economic growth, promote international trade and for it to be an even more pronounced tie in the process of world economic globalization.

Entrepreneurship; Economic Policy; Chinese Experiences; Croatian Experiences;

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