Under current circumstances, entrepreneurship is a key factor for the development of world economy, and small businesses become more and more present. Although small businesses both in the Republic of Croatia as a whole and in the Sisak-Moslavina County are the most numerous and they employ the largest numbers of workers, the indicators are not at a satisfactory level and economic activity needs to be enhanced. Innovation as well as the ability and readiness of entrepreneurs to change are important for the economic development, same as the role of the state and of the local government and self-government. Small businesses encourage the development of private ownership and business initiatives, allow self-employment and employment, and contribute to increased outputs and exports within a country's economy. The development of small businesses and implementation of business ideas require institutional support and measures for the development of the small business sector. Well-designed measures for investing in small businesses prepared by local government and self-government, as well as the state itself, not only bring benefits in the economic field but also have an impact on the social community by creating better living conditions within the borders of the Republic of Croatia and the County itself. Such measures can also have an impact on migration policy, thereby reducing the migration of people to other developed countries and, consequently, the need to import foreign labor. It is necessary to invest in research and development to improve economic efficiency and employability, especially in the small business sector. Research and development will lead to better facilities, equipment, and products to keep Croatian entrepreneurs up to date with foreign competition.