Family businesses are a specific form of organization and have an important role in every economy. A comparison between the Republic of Croatia and Europe shows the state of family business and how many family businesses are actually researched and present in a particular economy. The goal of every family business is to preserve the family tradition, ensure the long-term financial stability of the company, and create as large a legacy as possible for the next generations. Although they bring numerous advantages, there are also numerous challenges that arise as a result of family relationships and business requirements. Managing relationships within the family and the company is a challenge for them that affects success and sustainability. The issue of transferring ownership to younger generations and the choice of successors are often a source of tension, uncertainty and conflict between generations that can threaten business continuity. The presence of emotions in business, i.e. the lack of objectivity, especially when making decisions, can represent obstacles for further business. Issues related to employment, professional growth and promotions within the company can also represent great challenges for family businesses, considering that most of such companies employ non-family members as well. Challenges of a political, economic and health nature are those that family businesses cannot influence, and examples of such challenges are the emergence of the Covid-19 virus and the restrictions that were adopted in order to prevent further spread, the war in Ukraine, the increase in the price of oil, oil derivatives and in general goods in the world. State measures adopted to help during the pandemic and war are presented. By analyzing the selected family business DiV 4 d.o.o., we want to show the impact of key challenges on the business of the company. Analyzes of the balance sheet and profit and loss account were carried out, as well as analysis using selected financial indicators. The analysis was carried out for the period from 2019 to 2021, in order to determine how challenges, such as the Covid-19 virus and the increase in the price of oil and oil derivatives, affected the operations of the selected company.