This work aims to point out the role of entrepreneurship as an important factor and bearer of economic growth and development, and the importance of encouraging innovation and providing support to entrepreneurs through EU funds and programs for the development of entrepreneurship in the Republic of Croatia, with a special focus on Zadar County. Owners of small and medium – sized enterprises face numerous problems in the initial phase of their business, both infrastructural, bureaucratic and financial. In the Republic of Croatia financial support for entrepreneurship is provided through the European Structural and Investment Funds. It is necessary to simplify the legislative procedure, regulate property-legal relations, reduce state levies and ensure better information and education of entrepreneurs about the availability and possibilities of using grants from European funds in order to contribute to the development of small and medium-sized enterprises. By becoming a full member of the European Union, small and medium-sized enterprises in the Republic of Croatia are given the opportunity to use various forms of financial support that will contribute to the quality of their operations and greater competitiveness on the market. The County of Zadar and the city of Zadar achieved exceptional success in withdrawing funds from EU funds, which enable them to finance strategic projects that will contribute to increasing the standard of living, creating new jobs, and the general economic development of cities, municipalities and the county as whole.