FINANCIAL REWARDS AS A KEY FACTOR OF ORGANISATIONAL SUPPORT TO ENTREPRENEURIAL ACTIVITY WITHIN ORGANISATIONS

Entrepreneurship within organisation is a key prerequisite of entrepreneurial and economic growth. Factors of organisational support such as financial rewards are important for entrepreneurial activity within the framework of existing organisational structures. Business performance and its organisational prerequisites are in a feedback loop. Frequently financial results are a determinant of financial rewards and they are a strong motivation for entrepreneurial activities of employees upon which the further entrepreneurial growth and development depend. In order to achieve its sustainability, market success should be observed through multiple, financial and non-financial indicators and absolute and relative measures, especially if business result is the basis for determining organisational incentives of employees' entrepreneurial activity. The aim of this paper is to examine the perception of management in Croatia regarding financial rewards as a key factor of organisational incentives within organisations and related tax instruments as a key determinant of their implementation. A structured questionnaire was used with this aim to test 62 small and medium-sized enterprises in Croatia with a pronounced entrepreneurial activity of employees. The research led to a conclusion that in Croatian companies the importance of financial rewards as a key factor in supporting entrepreneurial activities within organisation is not sufficiently recognised. In the process of financial rewarding, individual rewards are used exclusively, which were proven to be the least efficient financial instrument to the entrepreneurial activity of employees. The surveyed managers confirmed the assumption that the tax system has a significant impact on the choice of form and sum of employees' financial rewards used, but it does not provide the necessary incentive and support in this sense.