ACCESS TO FINANCE IN CROATIA – ARE INNOVATIVE FIRMS IN A DISADVANTAGED POSITION?

Finding appropriate financing sources for business activities is extremely important for enterprises. This is additionally emphasized in case of financing development and innovative projects. This paper explores predictors of access to finance perceptions, approval of finance and application for financing in Croatia. Additional focus is on the differences between innovative and non-innovative fi rms. Due to the fact that innovative firms are expected to spur additional economic growth, it is important to analyse whether the financing conditions under which they operate. The analysis rests on Business Environment and Enterprise Performance Survey (BEEPS) data. Results suggest that innovative enterprises more frequently perceive access to finance to be important obstacle to their business activity. Results also suggest that innovative firms do not have different likelihood in either application for financing or approval of financing. However, negative perceptions of innovative segments of an economy can create important barriers for future economic growth.