INTRODUCTION: Entrepreneurial activity positively impacts economic growth, with the quality of the entrepreneurial environment playing a crucial role in this regard. OBJECTIVE OF THE STUDY: The aim of this paper is to depict entrepreneurial activity and the entrepreneurial environment in Croatia in comparison to entrepreneurial activity and characteristics of the entrepreneurial environment in Israel. Based on this analysis, the goal is to draw conclusions about what Croatia can learn from Israel regarding the promotion of entrepreneurial activities in society and the creation of an enabling entrepreneurial environment. DISCUSSION: Entrepreneurship is a driving force for economic and societal development. The development of entrepreneurial activities in society is significantly influenced by the entrepreneurial environment, which comprises numerous actors whose actions and interactions can either stimulate or restrict the initiation and development of entrepreneurial activities by individuals. The Global Entrepreneurship Monitor is the world's largest research project on entrepreneurship, which, among other things, analyzes the entrepreneurial environment and provides conclusions and recommendations on the development of specific components of this environment. Croatia has participated in the GEM research since 2002, and the results of this research provide valuable information for analyzing the entrepreneurial environment in Croatia and for comparing Croatia's entrepreneurial environment with that of other countries participating in GEM. One of these countries is Israel, known as the "start-up nation." What sets it apart from Croatia, how Israel has developed its entrepreneurial ecosystem, and what can be learned from its example are the topics of this master's thesis. CONCLUSION: The entrepreneurial environment in Croatia still represents a constraining factor in the development of entrepreneurial activities. The main shortcomings that need to be systematically addressed include: insufficient activity levels for launching new business ventures, underdeveloped financial markets, a small share of high-growth enterprises, and administrative barriers. Israel emphasizes its exceptionally supportive entrepreneurial environment, resulting from carefully coordinated government policies and programs, a developed financial market, and advanced entrepreneurial education. These key factors create a conducive framework for the successful initiation and development of entrepreneurial initiatives in the country.