Recommendations for Enhancing Entrepreneurship through Direct Selling Activities
Recommendations for Enhancing Entrepreneurship through Direct Selling Activities
Direct selling is a distribution method based on personal contact with customers through a network of self-employed sellers.
Globally, the industry is growing strongly (USD 183 billion in sales, 103 million participants), but in Croatia sales fell by 24% between 2010 and 2015 due to tax, regulatory, and administrative barriers.
AmCham recommendations:
- Develop a legal framework – reintroduce definitions and rules for direct selling into the Trade Act and related regulations.
- Fairer taxation – introduce a non-taxable threshold for occasional activities, recognize expenses, and apply lower tax rates, following EU best practices.
- Remove administrative barriers – reduce mandatory contributions, simplify registration, and ease conditions for foreign companies.
The goal is to stimulate self-employment, flexible work, and entrepreneurship, enhance industry competitiveness, and increase state revenues and consumption.