Following is an English translation of the most recent interview our Director, Gerhard Šarić, gave to the specialized business intelligence portal, Bon.hr.
Our conversation partner today, Gerhard Šarić, has an incredibly interesting life story. Although he spent significant parts of his life first in Germany and then in the U.S., he eventually opted for Croatia. He founded the consulting agency Waymark, specializing in securing non-refundable EU grants for his clients. He advises with identifying the right tenders, preparing the project applications, and implementing projects for companies, local governments and associations. In our conversation, he shared some tips on how to secure grants more easily, best strategies during the application process, and weighed experiences abroad and in Croatia.
Gerhard, you have been working in development via grant financing for over 20 years. A common assertion is that EU grants are largely responsible for Croatia’s strong economic growth in recent years. How much truth is there to this claim?
EU grants are indeed a strong catalyst for Croatia’s economic development today, especially in sectors like infrastructure, research and innovation, and small and medium enterprises. When we factor in the funds from the Recovery and Resilience Facility, Croatia has a surplus of 14.61 billion euros. That’s the difference between the funds Croatia received and her contributions to the EU budget.
These grants enable projects that would otherwise often be unfeasible. They help modernize industries, create jobs, and improve competitiveness. However, I believe long-term growth depends on more efficient use of these funds, fostering local expertise, and integrating them into sustainable economic strategies.
Grants are not “free money” or a one-off financial boost
How much has the improved business climate helped?
The improved business climate has been crucial in stimulating economic growth. It encourages innovation, attracts investments, and supports the development of small and medium enterprises. Additionally, structural reforms, EU membership, and investments in infrastructure have contributed to growth by creating a more dynamic and competitive economy. It’s this combination of factors that has fostered a more resilient and diverse economic environment.
What are the biggest misconceptions entrepreneurs have about EU grants? Are we different from other European countries in this regard?
One common misconception is that grants are “free money” or merely one-time financial assistance, while in reality, they require strategic planning, co-financing with one’s own funds or through loans, and a great deal of responsibility.
Many entrepreneurs are concerned about the complex application processes or strict reporting requirements, which can deter some from participating. However, Croatia is not unique in this regard. In my experience, businesses across the EU face similar challenges.
However, successfully utilizing grants often leads to long-term benefits that far outweigh the challenges. These benefits include building internal capacities, fostering innovation, and achieving more sustainable growth.
Ideally, preparation should begin several months before the public call
What would you advise entrepreneurs when preparing to apply for grants? How early should they start preparing?
I would advise entrepreneurs to start preparing as early as possible, ideally several months before the call for grants is published. If multiple projects are involved, it’s important to create a project pipeline where the importance and urgency of each project are clearly defined, along with its alignment with the company’s broader strategy.
After that, companies should clearly define their project goals, assess eligibility, and secure the necessary financial and technical resources. Developing a strong project concept and assembling a skilled team to write the proposal and manage the project are key to increasing the likelihood of success. If they don’t have previous positive experience with preparing project applications or managing projects, or simply lack internal capacities, I recommend working with experienced EU project consultants.
Which companies are most likely to receive grants?
Companies that are well-prepared, financially stable, and capable, with a clear strategic vision, have the highest likelihood of success in securing EU grants. Those that are profitable, have no debts to employees or the state, have prior experience with successful project applications and implementation, and demonstrate strong project management capabilities, or institutional capacity, are particularly competitive. Moreover, companies that align their projects with EU priorities, such as innovation, sustainability, or digital transformation, are more likely to receive support in the current financial budget period, which runs until 2027.
Business intelligence is crucial in assessing potential project partners!
What role does business intelligence play in applying for grants?
Business intelligence can play a key role in the grant application process. It helps companies assess their eligibility under the tender conditions, as well as evaluate market opportunities and identify risks. It also helps businesses fully understand the financial obligations they commit to by signing the Grant Agreement and the financial reporting criteria.
Additionally, business intelligence is essential in assessing potential project partners, ensuring that they are credible, reliable, and financially stable.
By using a specialized portal like Bon.hr, you can check the financial status of your company as well as that of project partners. This simplifies decision-making and increases the likelihood of overall project success.
Lastly, you are a returnee to Croatia. How would you compare doing business in Croatia with that in Germany or the U.S.? How much has the situation improved since your return?
Doing business in Croatia offers unique opportunities but also presents various challenges compared to Germany or the U.S. On one hand, Croatia’s EU membership has opened up funding opportunities and spurred growth in various sectors. On the other hand, bureaucratic obstacles and a somewhat less mature business ecosystem, if I may put it this way, can pose difficulties.
Since my return, there has been significant improvement, especially in overall access to EU funds and infrastructure development. However, there still remains much room for progress in regulatory efficiency, reducing bureaucracy and special taxation, and supporting entrepreneurship.
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If you are interested in reading the original interview, read the Croatian version HERE.