Examining Financial Management Practices in the Context of Smart ICT Use: Recent Evidence from Croatian Entrepreneurs

Bisera Karanović 1 , Gordana Nikolić 1 ,  and Goran Karanović 2
  • 1 Gordana Nikolić are at PAR University College, , Rijeka, Croatia
  • 2 University of Rijeka, Faculty of Tourism and Hospitality Management, Croatia


Recent research demonstrates that entrepreneurs who learn contribute to lower failure rates of their startups. Nowhere is this more evident than in the area of financial management, where the entrepreneurs’ lack of skills and competencies – and their willingness to acquire them - can be a critical factor to the success of the business venture. The purpose of this paper is to examine the financial management practices among Croatian entrepreneurs in relation to budgeting, raising capital, cash flow management, and the use of ICT tools for enhanced efficiency of their businesses. The survey was conducted on a sample of 58 entrepreneurs whose answers provide valuable insight into their grasp of financial concepts in the context of smart ICT use. The ensuing analysis of the level of proficiency in combining smart tools with financial management reveals increased adoption of ICT practices for budgeting and purchasing among Croatian entrepreneurs. Additionally, the findings indicate that the entrepreneurs’ acquisition of skills and competencies for smart financial management presents a sound basis for increased overall financial sustainability of the startups.

If the inline PDF is not rendering correctly, you can download the PDF file here.

  • Aaltonen, A., 2016. Factors Shaping Entrepreneurial Ecosystems and the RIse of Entrepreneurship: A View from Top Management Journals, Helsinki: Demos.

  • Agyei, K. N., 2014. Small Scale Business Practice of Basic Financial Management With Regards to Liquidity. International Journal of Research In Social Sciences, 4(5), pp. 77-85.

  • Baldigara, T., Štambuk, A. & Mamula, M., 2012. An Insight into the Internet Usage Evolution - A Quantitative Approach. Lovran, International Federation of Communication Associations, pp. 136-150.

  • Battilana, J. & Casciaro, T., 2012. Change Agents, Networks, and Institutions: A Contingency Theory of. Academy of Management Journal, 55(2), pp. 381-398.

  • Bontis, N., Chua Chong Keow, W. & Richardson, S., 2000. Intellectual Capital and Business Performance in Malaysian Industries. Journal of Intellectual Capital, 1(1), pp. 85-100.

  • Bryson, J., Wood, P. & Keeble, D., 1993. Business Networks, Small Firm Flexibility and Regional Development in UK Business Services. Entrepreneurship & Regional Development, 5(3), pp. 265-278.

  • Chittenden, F., Poutziouris, P. & Michaelas, N., 1999. Financial Management and Working Capital Practices in UK SMEs, Manchester: Manchester Business School.

  • Collins, J. & Jarvis, R., 2002. Financial Information and the Management of Small Private Companies. Journal of Small Business and Enterprise Development, 9(2), pp. 100-110.

  • Daskalakis, N., Jarvis, R. & Schizas, E., 2013. Financing Practices and Preferences for Micro and Small Firms. Journal of Small Business and Enterprise Development, 20(1), pp. 80-101.

  • Deakins, D., Morrison, A. & Galloway, L., 2002. Evolution, Financial Management, and Learning in the Small Firm. Journal of Small Business and Enterprise Development, 9(1), pp. 7-16.

  • Dinka, S. T., 2017. Assessment of Financial Management Practices: A Case Study on Small Businesses in Sokoru District, Ethiopia. Research Journal of Finance and Accounting, 8(19), pp. 18-29.

  • Faggian, A. & McCann, P., 2009. Human Capital and Regional Development. In: R. Capello & P. Nijcamp, eds. Handbook of regional growth and development theories. Cheltenham: Elgar, pp. 133-151.

  • Flash Eurobarometer 354, 2012. Entrepreneurship in the EU and beyond, Brussels: European Commission.

  • Forsman, H., 2011. Innovation Capacity and Innovation Development in Small Enterprises. A Comparison between the Manufacturing and Service Sectors. Research Policy, 40(5), pp. 739-750.

  • Fuellhart, K. & Glasmeier, A. K., 2003. Acquisition, Assessment and Use of Business Information by Small-and Medium-sized Businesses: A Demand Perspective. Entrepreneurship & Regional Development, 15(3), pp. 229-252.

  • Karanović, G., Karanović, B. & Gnjidić, M., 2018. Liquidity Risk Management: Practice Among Croatian Firms. Zbornik Veleučilišta u Rijeci, 6(1), pp. 81-98.

  • Maxwell, S. & Stone, D. L., 2004. Global Knowledge Networks and International Development. New York: Routledge.

  • Mitchelmore, S. & Rowley, J., 2010. Entrepreneurial Competencies: a Literature Review and Development Agenda. International Journal of Entrepreneurial Behaviour & Research, 16(2), pp. 92-111.

  • Narangajavana, Y., Gonzalez-Cruz, T., Garrigos-Simon, F. J. & Cruz-Ros, S., n.d.

  • Presutti, M., Boari, C. & Majocchi, A., 2013. Inter-organizational Geographical Proximity and Local Start-ups’ Knowledge Acquisition: A Contingency Approach. Entrepreneurship & Regional Development: An International Journal, 25(5-6), pp. 446-467.

  • Rogers, S., 2009. Entrepreneurial Finance: Finance and Business Strategies for the Serious Entrepreneur. 2nd ed. New York: McGraw-Hill .

  • Sian, S. & Roberts, C., 2009. UK small owner-managed businesses: accounting and financial reporting needs. Journal of Small Business and Enterprise Development, 16(2), pp. 289-305.

  • Smith, W. L., Schallenkamp, K. & Eichholz, D. E., 2007. Entrepreneurial Skills Assessment: An Exploratory Study. International Journal of Management and Enterprise Development, 4(2), pp. 179-201.

  • Willis, K., 2011. Theories and Practices of Development. New York: Taylor & Francis.


Journal + Issues