The subject of this thesis is The possibilities of using EU funds in order to reduce the unemployment in the Republic of Croatia on the example of small and medium- sized enterprises. The results of the research conducted in 50 small and medium-sized enterprises are presented in the thesis which show what happens with the number of employed persons in enterprises which withdraw funds from the EU funds. Before presenting the research, the EU funds that are available to the entrepreneurs are presented and the main characteristics of small and medium-sized enterprises in the Republic of Croatia are explained. By entering the EU on July 1st 2013 Croatia got the opportunity for using different advantages in order to speed up the economic growth and enhance the social welfare of the citizens. European structural and investment funds available to Croatia for its use in the period from 2014 to 2020 include five funds: European Regional Development Fund (ERFD), European Social Fund (ESF), Cohesion Fund (CF), European Agricultural Fund for Rural Development (EAFRD) and European Maritime and Fisheries Fund (EMFF). In the thesis, the analysis of small and medium-sized enterprises from the whole area of Republic of Croatia which withdrew funds from the EU Funds in the period from 2014 to 2017 led to the conclusion that with the efficient withdrawal of EU funds the Republic of Croatia can increase the number of new working places, the employment of youth and the economic growth. Numerous programmes are intended for facilitating access to financial assets for small and medium-sized entrepreneurs, the introduction of innovations and new technologies directed towards nature preservation and protection, industrial development, development of agriculture and fisheries as well as energy efficiency.