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Informality, Labour Mobility and Precariousness pp 95–123Cite as

Palgrave Macmillan

Informal Networks Among Immigrant Entrepreneurs: Case of Croatia

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Part of the book series: International Political Economy Series ((IPES))

Abstract

This chapter investigates networking activities among ethnic entrepreneurs in Croatia, a former socialist economy with low rates of immigrants and an increasing emigration wave. Moreover, this study looks at the ways ethnic entrepreneurs use different network types to access different resources. Croatia has faced turbulent transitional environment and despite recent improvements, institutional framework is still not stimulating for entrepreneurs. Besides usual barriers for entrepreneurs, immigrant entrepreneurs face additional formal and informal barriers. Some of these are partly solved or diminished by using informal networks. Despite that fact, the informal networks are still underresearched in Southeastern Europe. There are several takeaways from this study. First, the informal networks appear to serve as substitutes to missing or insufficiently efficient institutions of the formal networks aimed at foreigners’ needs, entrepreneurs in this case. Second, the conclusion focuses on the role of the ‘extension’ of the expat groups that the ethnic entrepreneurs consider vital for their business establishment and development, but for their private life as well. These are mostly Croatian citizens, fluent in English, who are recognised as reliable local partners. Still, the general population in Croatia is relatively slow in integrating foreigners. Finally, in their informal networks, the ethnic entrepreneurs are used to in-group cooperation and support. That shall be utilised in further initiatives targeting them, particularly in mentoring and training programmes. This research contributes to the literature on informal networks of ethnic entrepreneurs in post-socialist European countries, more specifically in SEE countries with similar legacy and similar EU trajectory. Despite reliance on the most recent primary data from Croatia, this study shall have broader resonance for other (post-socialist) countries sharing similar development and migration-related pattern.

This research was partly implemented within the research project ‘Institutional support to the immigrant entrepreneurs in Croatia: socioeconomic and legal aspects’ funded by the University of Zagreb (short-term research grant in 2020).

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Notes

  1. 1.

    This also implies a mandatory membership fee.

  2. 2.

    None of the respondents is a member of the Chamber of Crafts as all of them own limited liability company.

  3. 3.

    Association representing businesses in Croatia, membership is paid, but voluntary (unlike Croatian Chamber of Commerce).

  4. 4.

    An illustration of the lack of public activities in English for the wider audience of foreigners: In November 2019, in the Facebook group Expats in Zagreb, there were several posts looking for ‘Frozen 2’ (extremely popular movie for kids) in English at any public place in Zagreb. No positive response was found among public announcements.

  5. 5.

    This finding is also confirmed by series of interviews with foreign entrepreneurs featured in the Total Croatia News at https://www.total-croatia-news.com/tag/croatia-foreign-entrepreneur.

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The authors are thankful to student-assistant Matea Nikolić for her research help.

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Authors and Affiliations

  1. Faculty of Law, University of Zagreb, Zagreb, Croatia

    Ružica Šimić Banović

  2. Faculty of Economics, Business and Tourism, University of Split, Split, Croatia

    Vlatka Škokić

  3. Faculty of Economics, J.J. Strossmayer University of Osijek, Osijek, Croatia

    Mirela Alpeza

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  1. Ružica Šimić Banović
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Correspondence to Ružica Šimić Banović .

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  1. Dublin City University, Dublin, Ireland

    Abel Polese

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Šimić Banović, R., Škokić, V., Alpeza, M. (2022). Informal Networks Among Immigrant Entrepreneurs: Case of Croatia. In: Polese, A. (eds) Informality, Labour Mobility and Precariousness. International Political Economy Series. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-82499-0_4

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