THE ROLE OF INNOVATION IN THE DEVELOPMENT OF THE ENTREPRENEURSHIP OF SMALL AND MEDIUM-SIZED ENTERPRISES IN CROATIA, WITH AN EMPHASIS ON THE INFLUENCE OF EU FUNDS

Sažetak

Innovation is a key driver of competitiveness and sustainable
development of small and medium-sized enterprises (SMEs) in Croatia.
This paper aims to explore the role of innovation in the development of
small and medium-sized enterprises (SMEs), with a particular emphasis
on the impact of European Union (EU) funds on innovative activities
and business growth. Analysis of recent scientific literature, statistical
data, and practical examples has been used. The results show that
European funds have made a significant contribution to increasing the
innovation capacity of SMEs through funding for research, development,
and digitalisation. However, challenges such as administrative
obstacles and a lack of skilled staff continue to limit the full potential
of innovation. It concludes that further strengthening of institutional
support and education is key to increasing the efficiency of the use of
EU funds and stimulating innovation in SMEs.