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Petar Lovrić
Episode · #21

RITAM POSLA Petar Lovrić

Guest Petar LovrićHosted by Lidija KiseljakMay 3, 2026
About this episode
What you'll hear in this conversation

Petar Lovrić has spent years within Croatia's main employers' association, the HUP, advocating for small and medium businesses. Yet, what he saw as a growing conflict of interest — with public enterprises joining HUP and then raising prices or imposing fees on the very businesses the association was meant to protect — eventually led him to a radical decision. He founded a new, independent association specifically for entrepreneurs and employers, built on a volunteer model and a mandate to give a voice to those he felt were being ignored. Lovrić's move is more than just a split; it's a stark commentary on the challenges of effective advocacy when "big" and "small" interests diverge, and when government entities blur the lines of representation. He argues that verbal promises from politicians mean little if not backed by clear, enforceable laws. His perspective offers a pointed look at the structural issues facing SMEs, from disproportionate fines for minor errors to the hidden costs of sick leave that drive businesses towards temporary contracts. Readers will come away understanding why a powerful voice for smaller businesses often needs to be built from the ground up, and how seemingly minor regulatory details can have profound effects on an entire economy.

Insights from the conversation
What to take from this episode
01
When public enterprises like HEP and FINA joined the Croatian Employers' Association, they became part of the problem Lovrić was trying to solve, not the solution. If your industry body represents both the regulated and the regulator, its core purpose is compromised, making genuine advocacy impossible.
02
Croatia's legal framework contains around 15,000 financially punitive articles, many of which penalize small businesses for formal errors rather than substantive issues. When compliance is about nitpicking punctuation instead of preventing fraud, it creates a system ripe for corruption and disproportionately burdens small operators.
03
The government's verbal promise to be "friends to entrepreneurs" meant little to Lovrić because, as he puts it, "the government does not function at a verbal level; it functions at the level of law." Policy changes only matter when they are codified into enforceable laws, not just announced as intentions.
04
The Labor Law's administrative measures, which allow inspectors to issue written warnings before fines, have standardized practice across the country. Legal frameworks need to offer structured warnings, not just penalties, to ensure consistent enforcement and prevent arbitrary interpretation by individual inspectors.
05
Lovrić's new association operates on a volunteer basis, deliberately avoiding paid staff to prevent the common pitfall where "the only fight becomes a fight for money." An advocacy group's effectiveness is undermined the moment its internal resource allocation competes with its stated mission.
06
Lovrić proposes that employers who pay for systematic health check-ups for their workers should be 100% exempt from the burden of non-work-related sick leave. If you want businesses to invest in preventative health, you must directly connect that investment to a reduction in their sick leave costs.
07
The fear of unpredictable sick leave costs, especially with tight margins, is a primary driver for employers choosing fixed-term contracts over permanent ones. To encourage stable employment, policy must address the underlying financial risks that push businesses towards temporary solutions.