Local self-government is an immediate level of government and citizen participation that reflects the success of democracy as a whole. It is a system of local units that independently and within their own revenues decide on citizens primarily relevant issues and provide public services. This paper is divided into several chapters each of which forms a separate whole. The first chapter deals with the definition of local self-government and its specifics, such as optimum opportunities for resources from EU funds. The need for cooperation between local units and social marketing has also been emphasized. The second chapter deals with the relationship between entrepreneurship and local self-government, that is, the role of local self-government in the development of entrepreneurship with regard to knowledge of the economic climate and the needs of citizens. The third chapter presents the development and current state of local self-government in the Republic of Croatia and a positive trend of volunteer work in developing programs of citizens' interest. The role of large cities in the development of entrepreneurship in the country and their relationship with other local units has been explained. The last chapter focuses on the Brodsko-Posavska County and the town of Slavonski Brod. An overview of the strengths, weaknesses, opportunities and threats to the development of entrepreneurship has been offered and so have the goals of the Slavonski Brod Development Strategy.