The role of small and medium enterprises (SME) in the economic development of individual countries is becoming more expressed and significant, so it can be said that they are actually the driver of economic development. The situation is the same in the Republic of Croatia, where SMEs are the most promising part of the economy. That this is the case is also shown by the data for 2019, where SMEs in the Republic of Croatia achieved a share of 60.3 % in total revenue, 74.3 % in employment and 53 % in Croatian exports. After the accession of the Republic of Croatia to the European Union, numerous benefits were opened for Croatian entrepreneurs, which enabled the strengthening of the competitiveness of domestic entrepreneurship. Without strengthening competitiveness, there is no survival in the common market of the European Union. One of the basic goals of the European Union until 2020 was to strengthen and encourage entrepreneurship with an emphasis on the development of entrepreneurship education and the creation of a favorable business environment, Entrepreneurs, thus, on their disposal have the funds to withdraw from EU funds, which will contribute to the modernization of business and innovation. Since the accession of the Republic of Croatia to the European Union in 2013, the number of entrepreneurs in the Republic of Croatia has been continuously growing, the entrepreneurial climate is improving, and the competitiveness of companies as well as their importance in the common market of the European Union are growing.