Results show that 39% of companies reported worsened performance in 2020, while 38.5% experienced improvements. Most companies maintained their workforce, and 64% plan new hiring over the next three years. The main challenges highlighted were lack of demand, shortage of skilled labor, and high labor taxation, while Croatia’s advantages remain EU membership, strategic location, and tourism potential. Despite the challenges, 74% of companies plan to expand operations, and the pandemic has accelerated digitalization and business process transformation.