Exploring the Determinants of Energy Vulnerability in Micro-Enterprises: Insights from the Croatian Case Study

Ivana Rogulj (), Saša Žiković and Stavros Spyridakos
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Ivana Rogulj: Institute for European Energy and Climate Policy, Kingsfordweg 151, 1043 Amsterdam, The Netherlands
Saša Žiković: Faculty of Economics and Business, University of Rijeka, Ivana Filipovića 4, 51000 Rijeka, Croatia
Stavros Spyridakos: Institute for European Energy and Climate Policy, Kingsfordweg 151, 1043 Amsterdam, The Netherlands

Sustainability, 2025, vol. 17, issue 13, 1-21

Abstract: Micro-enterprises are vital to the European economy, including in Croatia, where they make over 88% of the total number of businesses. Despite their significance, they face substantial energy vulnerability due to factors like small size, limited financial resources, and high energy costs. This paper investigates the determinants of energy vulnerability among Croatian micro-enterprises, employing a survey of 470 micro-enterprises. The study covers firms across all Croatian NUTS2 regions and ensures geographic and sectoral representativeness. Key findings reveal that enterprises with higher energy expenditures relative to revenue are most susceptible to energy vulnerability, which is aligned with our assumption. On the other hand, businesses that own their premises, have more employees, and have been operational longer are more likely to invest in energy efficiency measures, thereby reducing vulnerability. Notably, a significant proportion of micro-enterprises report that energy costs adversely affect their household finances, highlighting the nature of business and personal economic stability. The paper underscores the need for targeted policies and support mechanisms to enhance the energy-related resilience of micro-enterprises, considering their unique structural and financial constraints.

Keywords: determinants; energy vulnerability; micro-enterprise; survey (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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