Nowadays, the borders of countries are being "erased" under the influence of globalization and the economic development of countries depends more and more on local units, as the carriers of economic development, so that cities and regions compete with each other to attract investments, the influx of labor and population, and to raise the standard of living . What are the reasons that some local self-government units achieve faster growth rates, attract more investments, what is the difference in the models or systems of their functioning, i.e. what are the differences in encouraging entrepreneurship, subsidies, encouraging individual sectors of industry, use of the budget, taxes and the like. The key question is whether local administration and self-government units, within their limited powers, can directly and to what extent influence the growth of entrepreneurship in their area. What are the tools that can be used to encourage entrepreneurship and what is the correlation between various models of local unit management and economic growth. City management systems have a significant impact on the growth of the economy in the Republic of Croatia. High-quality city management, transparency, support for innovation and infrastructural development are key factors that create a favorable environment for economic progress. Implementation of sustainable policies, encouragement of investment and support for education and technological development are key to creating a competitive and innovative urban environment. It is important to ensure that local self-government units in Croatia have effective management systems that are focused on the needs of citizens and the economy in order to ensure long-term economic growth. Improving these aspects is key to shaping the prosperous future of the Republic of Croatia.