Preliminary communication
WHEN THINGS START GOING DOWNHILL – PROVIDING EDUCATION, INFORMATION AND CONSULTATION FOR CROATIAN ENTREPRENEURS ON BANKRUPTCY
Zrinka Gregov
orcid.org/0000-0001-9450-3079
; University of Applied Sciences VERN', Zagreb, Croatia
Martina Šomođi
orcid.org/0000-0002-2985-307X
; University of Applied Sciences VERN', Zagreb, Croatia
Jakov Bajić
orcid.org/0000-0003-4436-2567
; University of Applied Sciences VERN', Zagreb, Croatia
Tibor Pavić
orcid.org/0000-0002-5370-3653
; University of Applied Sciences VERN', Zagreb, Croatia
Abstract
This paper focuses on the problems encountered by entrepreneurs who are not well equipped for integral management of their companies, themselves and their families at the time of crisis and bankruptcy. The aim was to investigate to what extent entrepreneurs get prepared through their entrepreneurship education, get informed through the institutions supporting entrepreneurs and whether or not there are consultants specialising in restructuring and bankruptcy of family-owned SMEs in Croatia. Secondary research comprised primarily the extent of coverage of this topic in entrepreneurship textbooks written in Croatian and short programmes offered on web pages of Croatian organisations supporting entrepreneurs. Empirical research was conducted through a survey of 46 entrepreneurs in family-owned SMEs. The results suggest that in textbooks and short programmes much more attention is paid to the topic of setting up a business than closing it down. Survey results confirm the assumption that entrepreneurs are not well informed on what they are to face at the stage of failure and bankruptcy – from legal issues, challenges for managers posed by the pre-bankruptcy and restructuring options to the stage or grief, appropriate medical and psychological assistance. That leads to the conclusion that entrepreneurs are not well informed, and that there are no institutions in Croatia that specialise in assisting entrepreneurs and their families at the bankruptcy stage. So recommendations are: a) formal and informal education for entrepreneurs should include more material on crisis management and how to cope with business failure on a personal level, b) provide interdisciplinary education for consultants and crisis managers specialising in family-owned SMEs and provide subsidies for using their services, c) develop handbooks for entrepreneurs of the „When things start going downhill“ type containing all the necessary information for entrepreneurs and members of their families as well as useful references and contact information about specialised institutions.
Keywords
entrepreneurship; bankruptcy; education; information; consultation
Hrčak ID:
183456
URI
Publication date:
26.6.2017.
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