Concentration of Entrepreneurs as Response to Business Challenges and Risks

Kruno Skendrović, Mirela Karabatić


The risk when making business decisions is present every day due to the complexity of the modern market on which the business activity is taking place. The biggest challenge and at the same time the biggest risk faced by the entrepreneurs on the Croatian territory is the expected accession of the country into the European Union. The questionable level of competitiveness of the business subjects brings uncertainty of survival of the small and mid-size entrepreneurs (SMEs). One of the possibilities of strengthening the economic power of national entrepreneurs lies in merging and concentration. Merging of entrepreneurs in fragmented activities should contribute to the strengthening of the market position of the participants as well as to the maintenance of the competitive advantage, and eventually the benefits should be felt by the consumers. The concentration of entrepreneurs should not exceed the legally prohibited level, nor should it endanger the market competition in the observed activity. The aim of the paper is to study the level of concentration of participants in the selected activities on the Croatian territory, measured by a greater number of concentration indices, in the period from 2007 to 2012, establish the intensity and orientation of correlation between the level of concentration, the dynamics of total revenues and the occurrence of recession, and identify the similarities and the differences in the structure of the studied activities.


concentration of entrepreneurs, competitiveness, recession, merging

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