Entrepreneurship is the driver of economic development and changes. Environmental entrepreneurs are one of the relatively recent recognized types of entrepreneurs whose unique definition is still in its initial stages. With their activities, such entrepreneurs seek to help solve local, regional or global environmental problems, or at least limit their impact on the natural environment. The aim of this paper is to give an overview of the mitigating and aggravating circumstances for the development of environmentally sustainable entrepreneurship in Croatia. This is achieved by considering current environmental challenges, the political and legal environment, socio - cultural factors, the application of innovations and technologies and specific market factors in the form of the benefits that environmental entrepreneurs have over conventional ones. On the other hand, the barriers for development that are peculiar to environmental entrepreneurs are discussed. An example of good practice in Croatia is the social cooperative Humana Nova, which, with the employment of excluded groups from the labor market, aims to preserve the environment. Humana Nova is compared to a similar example from Slovenia, Zadruga Dobrote and its project Tekstilnica. The comparison shows their similarities and differences as well as provides suggestions for improvement for the Croatian example.