SME’s Business Model Sustainability in Croatia

Abstract

Small and Medium sized Enterprises (SMEs) are important part of each economy. The paper studies the importance of SMEs in national economy, participation of different economic activities in SMEs business models, management actions in finding the answers to particular strategic questions in the process of creating an efficient and sustainable business models for SMEs. For creating a systemic efficiency measure, hybrid finance, liquidity, profitability and similar indicators are used for measuring efficiency of SMEs in Croatia. Analysis has pointed out the main problems and limitations, and finally indicates the necessity of improvement of SMEs business policies in Croatia. SMEs are exposed to different challenges, but analysis concluded different scope and manner of exposure across sectors, especially in the context of COVID-19 consequences. Paper is consisted of several parts, after introduction literature review presents significance SMEs in national economies, followed by chosen data, indicators and methodology, results and interpretations, concluding remarks and proposal for more efficient SMEs business models.