Perspectives and Challenges in the Development of the Croatian Digital Startup Sector

Startups are an inevitable part and active drivers of the digital economy. The number of digital startups is growing rapidly and their business model has proven successful in doing business in the context of the global health and economic crisis. The attributes of high innovation and significant potential for achieving rapid growth and a scalable economic model make them relevant participants in creating contemporary economic conditions, especially in the digital economy. The purpose of this paper is to point out the importance of the development of the digital startup sector as one of the crucial drivers of economic growth and development, and the achievement of both economic and social benefits. The research objective is to study and discuss the current state of the Croatian digital startup sector and to identify perspectives and challenges, as well as to put forward recommendations for its further development based on available secondary data. The analysed data suggest that the main determinant of the entrepreneurial ecosystem is its insufficient adaptation to the specific needs of startups, and hence the digital startup sector in Croatia is at a low level compared to other countries in the region of the same development group.