The theme of this graduate thesis is female entrepreneurship in theory and practice and the challenges and prospects of female entrepreneurship. Entrepreneurship is a complex process of realizing ideas, investment , fort and devoting time to the idea turned into a venture that gives pleasure, earnings and opportunities to create new jobs. SMEs are a very important part of Croatian economy, they play an important role in generating new businesses and increasing employment. The paper aims to show the position of women in the world of entrepreneurship. Female entrepreneurship refers to an economic entity in which the majority is owned by women. Studies have shown that the number of entrepreneurs are still higher than the number of female entrepreneurs in Croatia. The aim of this paper is to point out the features and benefits of female entrepreneurship in Republic of Croatia. Due to increased financial encouragemen t of the development of female entrepreneurship, Republic of Croatia became aware of the importance of women in the labor market, reducing the obstacles when entering the entrepreneurship, which leads to an increase in the chances and opportunities for women in the business world, and ultimately increase gender equality. This work explains the advantages and disadvantages of joining the enterprise, the advantages and disadvantages of business small and medium enterprises in the Republic of Croatia and the obstacles and challenges of female entrepreneurship. In last part of this thesis the female entrepreneurship is viewed through examples of successful women entrepreneurs in Croatia.