Croatia: thinking with your feet

Their father used to produce shoes, but Domagoj and Hrvoje have led the family business into a green, sustainable turn

Domagoj Boljar is an optimist. Sitting in a colourful armchair and with a tablet in front of his eyes, this 38-year-old entrepreneur tries to explain to me with drawings how he had to change the legal structure of his company to welcome new capital. Within a couple of years MIRET , the ecological footwear brand that he founded together with his brother Hrvoje, has gone from being just a dream to become a company with almost ten employees. "Croatian legislation, and more generally European legislation, does not facilitate the growth of start-ups. In common law countries it is easier to welcome new investors into the share capital. Here the procedure is a bit longer", explains Domagoj as he frantically moves the digital pen on the screen. Then he smiles, looks up, and exclaims: "But we mustn't lose heart!".

Hemp shoes

Originally from Duga Resa, 60 km south-west of Zagreb, Domagoj Boljar grew up in an entrepreneurial family. In 1995, his father Josip founded the footwear company "Mr. Joseph”, that over time built itself a name in Croatia. There, both Domagoj and Hrvoje took their first steps into the world of work, once they finished their studies in economics and industrial design, respectively. "We had our own project in the family business: we were in charge of producing luxury sneakers for various European brands", remembers Domagoj, "but over time we realised the dark side of the sector, or its environmental impact. It is not often talked about, but shoes are made with synthetic products, plastics, materials that pollute and which – even in the case of leather – are very often impregnated with toxic agents. 24 million pairs of shoes are produced every year".

From that observation the desire was born to do things differently, that is to produce shoes using only natural fibres and causing as little environmental impact as possible. Today, MIRET sneakers are "the most ecological shoes in the world", made almost entirely of hemp, cork, corn, jute, eucalyptus, or rubber tree fibres. For several years, however, the Boljar brothers' project remained dormant, seemingly too complicated to be carried out. The brand, officially registered in 2015, was activated only in 2018, when the crisis of the family business forced a radical change on Domagoj and Hrvoje. "It was a catastrophe, a real black swan, an unexpected event: overnight our business practically no longer existed. So, we decided to really try our dream project", Domagoj resumes.

So, the moment when “Mr. Joseph” goes into crisis – today the brand is bankrupt – paradoxically becomes the chance to launch MIRET. Compared to a few years earlier, in 2018 "the company is more attentive to the environment and to how the products we use are manufactured", notes Domagoj Boljar. In short, "it was the right time to try", says the entrepreneur. I ask him how that first initial phase went, if there were difficulties in transforming the idea into a business and if Croatian bureaucracy did not at times discourage him. Domagoj shakes his head. "I usually know that my compatriots complain, but I think it has always been difficult to do business. Indeed, I would say that if there is a moment in which being an entrepreneur is easier than ever, well, it is now", he assures with conviction.

Doing business in Croatia

"Since Croatia joined the European Union in 2013, the changes have been many and significant. There is no longer customs for other EU countries, it is no longer necessary to obtain special certificates to participate in fairs, and then there are many, many more sources of funding, not to mention travel or study opportunities", adds the founder of MIRET.

In 2019, the start-up from Duga Resa therefore started looking for funding. A first tranche of 15,000 Euros came from Climate-KIC , the instrument of the European Institute for Innovation and Technology (EIT) to support innovative projects related to the environment. It is the largest European acceleration programme for start-ups developing positive solutions in the context of climate change. In Croatia, the EIT Climate-KIC Croatia Hub has been active since 2018 and MIRET has been involved in the first two tranches of funding, for two consecutive semesters.

The Boljar brothers' company also obtained funding from Fil Rouge Capital , an investment fund for start-ups and businesses, also financed by the European Regional Development Fund . In March 2020, MIRET raised over 68,000 dollars on Kickstarter thanks to the contribution of almost 600 people around the world. Wouldn't it have been easier to access European funds instead of seeking funding on such different platforms? - I ask Domagoj. "In fact, when a business is created it is very difficult to benefit from European funds. Very often the company that applies is asked to have at least two years of turnover behind it and to be positive, two conditions that actually rule out start-ups", replies the co-founder of MIRET. Furthermore, "European funds are very rigid, while a start-up – especially in its initial stages – needs to experiment and also to radically modify the product it sells", concludes Domagoj Boljar.

Four years after the first loan, MIRET is a solid company that in 2021 sold 2,000 pairs of shoes made from materials made in EU and 97% natural. In addition, the company has collected several prestigious awards, such as the IDA Design Awards Gold Winner 2021 in the "Sustainable Fashion" category, making its way into a competitive market such as that of fashion and footwear. Furthermore, for a couple of years, Domagoj and the other eight employees of MIRET have been hosted at Zicer , the start-up accelerator of the municipality of Zagreb, a structure co-financed by European funds and in which you can breathe dynamism and creativity – an exception, one would say, in the country. At the beginning of 2022, in fact, the Croatian statistical office published the first data of the census carried out in 2021, confirming that Croatia has lost about 10% of its population in the last ten years. Those who leave often denounce the lack of prospects in the country.

I cite these data to Domagoj Boljar, testing his optimism, but he is unfazed. "Of course, there are things that need to be improved. As far as small business is concerned, I am thinking for example of the legal system that does not give investors security and the opening to new sources of financing, such as Kickstarter, which is currently not available in Croatia. But things are still heading in the right direction", assures Boljar. His company, however, only sells a third of its production in Croatia: perhaps this is why it is less linked to the country's economy? - I ask. Domagoj shakes his head. "What needs to be radically changed in Croatia is the approach to entrepreneurship. We need to put an end to the stigma of failure. Today, there are tools to try to realise an idea, with relatively little risk. You have to try", he encourages. In any case, there is no lack of development plans at MIRET.