In the paper elaborates the concepts of development strategies of small and medium enterprises, strategic vision and mission statements. Strategic management as a process of formulating and implementing a strategy is extremely important because by properly selecting and implementing the strategy, the company makes a profit. We have given definitions according to Croatian and European standards of small and medium enterprises. Small and medium-sized enterprises are only a small part of the overall economy, but they play an important role in its functioning due to the effect on the flexibility and innovation of the economy, employment and export growth, reducing social and regional disparities, and accelerating development. Small and medium-sized enterprises find it more difficult to obtain bank loans, and have difficulty accessing certain sources of financing due to their size. Consulting assistance provides small and medium-sized enterprises with assistance in planning and raising funds for working capital in order to realize their entrepreneurial visions. This paper sought to prove how much the definition of strategy, ie mission and vision, in small and medium enterprises contributes to their long-term business success. In accordance with the above, it was investigated to what extent small and medium enterprises in the municipality of Udbina have defined and adopted long-term strategies for enterprise development.