Digitalization through e-invoices in micro and small enterprises: Croatian experiences

The aim of this paper is to investigate practical experiences of micro and small entrepreneurs in the Republic of Croatia regarding the digitalization process, with a special emphasis on the implementation of e-invoices in their business operations. Qualitative methods were used within the scientific research conducted, specifically semi-structured interviews with 15 micro and small entrepreneurs operating in various sectors (trade, services, manufacturing, and construction). The scientific contribution of this paper lies in the exploration of both positive and negative aspects encountered by micro and small enterprises through the implementation of electronic invoices. Furthermore, the study identifies obstacles faced by entrepreneurs during their adaptation to new digital requirements in doing business with the public sector, as well as the level of institutional support provided. Results indicate uneven readiness for change among entrepreneurs from different sectors, with information scarcity and limited capacities identified as primary challenges. On the other hand, positive developments were observed in terms of business efficiency and administrative burden reduction for enterprises and their employees. This paper contributes to a better understanding of the real needs of micro and small entrepreneurs in adapting their business to digital transformation, and may serve as a basis for shaping support measures to facilitate their digital transition.