Deviation between the Convergence to the Target Values of the Performance Indicators of the Local Strategic Goals for the Development of Entrepreneurship and the Average National Trends: Case Study of the City of Rijeka

Abstract

This paper addresses the selection of appropriate measurable performance indicators for monitoring defined strategic goals for entrepreneurship and business sector development at the local level, particularly from the perspective of bringing the pace of development closer to the national average. Using the example of the Croatian city of Rijeka, the paper analyses whether the convergence to the target values of key indicators of success in achieving the city's strategic goals in the field of entrepreneurship also contributes to favourable development dynamics of the local business sector compared to the average national trends. The results presented in this paper have shown that the overall performance of local entrepreneurs in the city of Rijeka, although approaching the target values, still lags behind the average trends at the national level. This is mainly reflected in the below-average labour productivity, below-average economic strength and below-average capital equipment, as well as in the extremely monolithic structure of the local business sector. Therefore, this case study shows that it is important for cities to consider the broader context of specific development goals when developing appropriate indicators to monitor the success of their implementation, especially in terms of national or regional development averages and criteria for the long-term stability and resilience of a city's development.